ALPHABET SOUP TV PLANNING TERMINOLOGY FOR ALL CLIENTS

1. ALPHABET SOUP TV PLANNING TERMINOLOGYFOR ALL CLIENTS

2. TV PLANNING TERMINOLOGY • REACH • The number of people within the defined target market who are potentially exposed to the message at least once. This is usually reflected as a % or ‘000s; and is often referred to as coverage, cover or penetration. • EFFECTIVE REACH • The number of persons, within your target market, who are exposed to the advertiser’s message sufficient times to ensure meaningful and lasting retention of that message. Usually measured at 3+ frequency. • FREQUENCY • The number of times, on average that a person within the target market is supposed to have been exposed to the advertisers message. • AWARENESS • Acknowledgement that a product or brand has been advertised but without specific recall of the advertising message.

3. TV PLANNING TERMINOLOGY • AMPS RATINGS (AR’S) • AR’s are a time weighted measurement which look at the potential reach of a programme against a specified target audience. • 4AR’s Means that 4% of the target audience will be reached (of the total TV viewing population). • However this is a duplicated figure and therefore if you have a number of spots, some people within the defined target market may be counted more than once, which makes AR’s a combination of reach and frequency.

4. TV PLANNING TERMINOLOGY • IMPACT • The relative degree of assumed awareness, or measured ad noting, achieved by a particular creative execution in any given medium. • LSM – Living Standard Measures • A series of groupings that segment the South African Adult population based on living standards rather than any single demographic discriminator. Essentially a wealth measure ranging from LSM 1 to LSM 10. • LOADING • A premium added to the normal advertising rate to either secure a position or recognise a high demand period. • COST PER THOUSAND • The cost of reaching 1000 members of the defined target market. • This is often reflected as CPM or CPT, but R/000 is the most widely utilized notation. • CPP • This is the average cost of one AR/GRP. • The investment required to buy one rating point (1 AR) • Spot Rate = R 12 500 • AR’s = 8 • CPP = R1 562.50 (R12 500/ 8)

5. TV PLANNING TERMINOLOGY • GROSS RATING POINTS • GRP’s represent the duplicated reach of a campaign, therefore combining both the reach and frequency variables. • UNIVERSE • The number of people within the defined target audience. • ADTRACK • A survey conducted on request by Impact Information which tracks verified notings and liking scores for a television commercial. Based on three results, a computer model is constructed which allows the performance of future burst strategies to be determined in advance. It is not a measure of commercial creativity, but a valuable media planning tool in determining optimum exposure and burst frequency levels. • ADVERTISING WEIGHT • The amount of advertising being planned for, or used by a brand. While it is not limited to a particular measurement, it is most frequently stated in terms of the number of messages or impressions delivered or broadcasts/ insertions placed over a period of time. • AMPS • The All Media and Products Survey is conducted annually by Market Research Africa for SAARF. The survey examines the readership, listnership, television and cinema viewing levels, as well as product and service consumption usage and purchase habits.

6. The relationship between AR’s, % Reach and Ave. Frequency: AR’s = % Reach x Ave Freq % Reach = AR’s div. by Ave Freq Ave Freq = AR’s div. by Reach Ratings % Reach Ave. Freq. TV PLANNING TERMINOLOGY

7. Definition of TV Viewing “Television viewing is being in a position where you are able to see the screen of a television set which is switched on to a television station or video tape playback.”

8. How is Viewership Measured? • SAARF AMPS Main Report and Diaries. • SAARF TAMS. • Methods are different therefore results do differ.

9. Viewership According to AMPS • Past Seven Day Viewership. • Here is a list of TV services. Which of these services, if any, have you watched in the past seven days? By watching TV, we mean that you personally have watched all or part of a programme - it doesn’t matter where you watched it. • Yesterday Viewership. Now I would like you to think about yesterday. Which, if any, of these TV services did you personally watch yesterday? AMPS DIARIES • At this point the respondent completes a diary page which breaks down a 24 hour period in 15 minute segments. • This data then provides the basis for the average quarter hour viewership. • Despite the fact that the information is not published, the collection of TV viewing data is still collected via the diary method in parallel to TAMS.

10. Station Coverage of Total Population

11. SAARF TAMS • In 1990 SAARF introduced a peoplemeter device into the WCI market. This device is also known as an AMPS Meter. • By 1993 the panel of peoplemeter households had been extended to include urban black households. • Diaries ceased to provide the basic day-by-day planning data used by agencies.

12. Why Meters? • The SAARF technical report lists a number of key benefits… • Reports available more frequently. Weekly reports contain daily details, with information being available on individual events, programme episodes, commercial breaks or even actual spots broadcast. • More detailed informationcan be provided, which is linked to extensive information about households and individuals within the panel. • Given that there is good co-operation from panel members, data should be more reliable and accurate than the diary method.

13. What is a Peoplemeter? • Simply put, the peoplemeter is a microcomputer that continuously records the following data in a sampled household: • The status of the TV set/s, M-Net decoders and VCR’s in the home. • The channel and programme being watched. • Who in the household is watching. • The time and duration of viewership. • Viewers in the measured household log in by means of a remote control. • Visitors in the home are also measured, however not taken into account in the calculation of reach and frequency data.

14. In The Interest of Long-Term Patterns… • The panelists are not forcibly rotated. • However, approximately 10% change every year: • Move residential address • Become tired of pushing buttons • Removal of panelists who co-operation levels prove consistently poor

15. What Does it Measure? • Measures specific TV audiences, by demographic and provides planners with second-by-second data. It is not limited to quarter hours like the old diaries. • Consequently, it can measure audiences of: • Programmes • Breaks • Spots • Campaigns • Makes post-broadcast campaign analysis possible.

16. How is the Data Collected? • Data is transferred by telephone to central collection point, where data is analysed and collated. • In non-telephone homes data is transferred to nearby telephone home by two way radio signals.

17. Current Situation • The number of metered homes will be increased to 1200 by April 2001, which should address the current under-representation of black households. • Now there are some 1330 meters able to report. In the latest week 1250 reported. • Currently two kinds of meters are used, the Mark 1 and Mark 2. The former can only be used in households with electricity and a telephone, serviced by an automatic exchange. The latter also requires electricity but has the ability to relay information from a non-telephone household to a base meter that is in-turn connected to a telephone. • The new Euro-Meter has been introduced into the market, and has the ability to measure the viewership of satellite TV.

18. No! But they are certainly more reliable than the diary method! Are Meters Infallible? The real problem lies not with the data generation, so much as with the management of the data and the use thereof… namely sampling error!

19. AMPS Ratings “Never before in the field of media planning, has something so small confused so many!!”

20. Audience Measure • Audience (AMPS) Rating. • This is in essence a measure of how many people you reach on TV when you advertise. • On a simple level, 1 AR represents 1% of the target market. • AR =  Time Viewed x 100 •  Available Time 1

21. Calculating an AR • AR = 60 minutes x 100 120 minutes • AR = 50 AR’s

22. Difference Between AR’s and GRP’s An AMPS Rating is the proportion of viewers, averaged across a time period i.e. single commercial, ad break, quarter hour or programme, and then reflected as a percentage of the total number of individual panel members in the relevant group, for example, Men Age 25-49. A GRP is simply the product of reach and frequency.

23. An Example… • Let us assume that we have a sample of four viewers and each of them watches a variable amount of a 15 minute TV programme. • What is the difference between calculating viewership on Diaries and Meters?

24. Based on the Diary… • Considers all viewers to the 15 minute segment to be full viewers, regardless of the actual amount of time spent viewing.

25. Based on the Meters… • Weights viewers in proportion to the actual amount of time spent viewing, producing a reduced overall viewership or reach of 50%.

26. How Does Buying Lots of AR’s Work? Spot 1 = 8 AR’s • If we buy one TV spot of 8 AR’s we will speak to approximately 8% of our target market. • In other words, 8% of the target market will see the ad once. • The circle on the right represents one TV advert. 8 AR’s

27. 3% 5% 5% Buying a Further Spot of 10 AR’s… Spot 1 = 8 AR’s • Total AR’s will be 18. (Spot 1 at 8 AR’s plus Spot 2 at 10 AR’s) • This will reach 8% of our target market ONCE. (3% from Spot 1 plus 5% from Spot 2) • And it will reach 5% of our target market TWICE.(5% overlap from Spot 1 and Spot 2) • In total we will reach 13% of our target market. (8% once and 5% twice) Spot 2 = 10 AR’s

28. Spot 1 = 8 AR’s 2% 1% 2% 1% 3% 2% 3% Spot 2 = 7 AR’s Spot 2 = 10 AR’s Buying a Third and Final Spot of 7 AR’s… • Total AR’s will be 25. (Spot 1 at 8 AR’s plus Spot 2 at 10 AR’s plus Spot 3 at 7 AR’s) • 5% of the market will see the ad once. (2% Spot 1, 2% Spot 2 and 1% Spot 3) • 7% will see the ad twice, and 2% will see the ad three times. • A total of 14% of our market will be exposed to the ad. (5% once, 7% twice and 2% three times)

29. Terminology

30. TV Planning Terminology • AR’s (Audience / AMPS Ratings) • The standard measurement for TV viewing. On a simple level, 1 AR represents approximately 1% of the TV target market • Reach or Coverage • The percentage of viewers within the target market who potentially saw the ad at least once i.e. one or more times. • Average Frequency • The AVERAGE number of times the target market is potentiallyexposed to the commercial

31. Spot 1 = 8 AR’s 2% 1% 2% 1% 3% 2% 3% Spot 2 = 7 AR’s Spot 2 = 10 AR’s Reach • Using the previous example… • A total of 14% of our market will be exposed to the ad regardless of how many times. • 5% saw it once, 7% saw it twice and 2% saw it three times.

32. Average Frequency • From the previous diagram it is apparent that in this example 14% of the target market saw the commercial. • The next question is how many times on average did they see it? • Some saw it once (5%), some saw it twice (7%) and some saw it three times (2%). • To calculate frequency the simple formula is… • Number of AR’s = Reach x Frequency

33. So Let’s Work it Out… The average of how many times people see your ad is what we call the average frequency! • So in this example… • 25 AR’s = 14% Reach x Frequency • Therefore Frequency is 1.8 • So, even though some people see the ad once, some twice and some three times, on average people will see the ad 1.8 times.

34. Relationship Between Reach and Frequency • As we saw in the previous example, any TV campaign consisting of a number of AR’s, is made up of a mix of reach and frequency. • For the same number of AR’s you may have a different breakdown… For a campaign of 100 AR’s 100 AR’s = 50% Reach x 2 Frequency or 100 AR’s = 75% Reach x 1.25 Frequency

35. What Does This Mean? • TV advertising using higher reach means that more people in your target market will see the ad, but fewer times. • TV advertising using higher frequency means that less people in your market will exposed to the ad, but more times. • This concept has major implications for the TV strategies that you use. This will be discussed in more detail next time!

36. A Simple Guide… Ratings • The Calculation Model • If an AR is the product of reach times frequency, then… • Reach = AR’s / Frequency • Frequency = AR’s / Reach Reach Frequency

37. Cost Per Point • The investment required to buy one rating point (1 AR) • Spot Rate = R 12500 • AR’s = 8 • CPP = R12500 / 8 AR’s = R 1562.50 • For every rating bought you pay R1562.50

38. How to use CPP • Indicates cost effectiveness of a programme against a specific market, it cannot replace all other variables. • Programme content and environment. • Reach and frequency contribution of the programme. • Programmes might demand a premium - good quality and consistent audiences.

39. Using CPP’s • When planning and buying TV spots, CPP’s help us to establish how cost effective a TV programme is… Don’t always look at capital cost!!

40. Calculating TV Budgets • A TV budget is calculated by multiplying the number of AR’s that you want to achieve for the campaign, by the cost to buy one AR i.e. the cost per point. • Rating Objective x CPP = Budget • 300 (AR Target) x R2500 (CPP Target) = R 750 000 Budget • 180 (AR Target) x R4000 (CPP Target) = R 720 000 Budget

41. CPP and Media Inflation • The All Adult CPP for a 30” commercial in the peak time period i.e. between 18h00 and 22h00 can vary from: • ± R2,400 in January • ± R4,700 in November A 100% Variance!!

42. TV Planning Tools • The Programmes we utilise to plan TV are provided by TELMAR, an international company that develops and markets media planning software. • The data is supplied on a weekly basis from the SAARF Peoplemeter panels (AMPSmeter weekly reports). • These tools enable us to… • Develop TV plans against Reach and Frequency objectives • Do post campaign evaluations • Do Channel & Programme Analyses

43. This is a typical slide (with bold title) • And this is what the text looks like. It can either build point by point as it does here, or you can adjust the animation to suit your specific requirements (difficult to fuck up too much). • You can do bullet points... • We prefer them simple in style, like this. • Or, as with any of this, adjust as you see fit. • All very simple really, the rest I am sure you can figure out for yourself.