Broadcast Media (Part One).

Adman — Mon, 04 Aug 2008 05:57:00 GMT

In my last blog, I mentioned that it is appropriate to think in terms of Gross Rating Points (GRPs) – not the number of spots to be purchased – when planning broadcast media buys. Here is a short demonstration using "WXYZ TV" a mock, top-ten ACNielsen DMA network affiliate.

Suppose you want to advertise a new anti-aging, fat-burning, sun-screening, appetite-reducing, muscle-toning, beautifying, sun-tanning, skin cream product (using all natural ingredients, of course) that is proven to eliminate cellulose, varicose veins and love-handles while adding years to one's life. Extensive research indicates that the primary target market is Women 18+, stay at home moms. Your client wants to first run the ads in a top-ten, spot television market before going national.

So you call the network affiliates in your test market and request availabilities (avails) in the DMA for the Female 18+ demographic -- believing that you need to run the commercial 30 times because your client -- who recently attended a one-day beauty business seminar -- told you so. You take a look at the Morning and Daytime day-parts for your Female 18+ demo for the fourth quarter.

[Television viewers are typically loyal to programs as opposed to stations. Nevertheless, I am using availabilities from a single station for demonstration purposes. The numbers are representative of an actual "top-ten" broadcast TV market.]

As you can see in the above "avail," the Female 18+ demo has dramatically different ratings and rates depending on the program. The cost per rating points (CPPs) are also quite different...even among programs specifically targeted to women.

In the avail, Program "A" (top-rated morning show 1) and program "B's" (morning show 2) adjacent time periods have different numbers when comparing 9a-10a (1.9 rating) vs. 10a-11a. (1.4 rating). The gross rate for the 9-10a slot is $350, considerably higher than the $265 rate for the 10a-11a time period... yet the CPP and CPM are lower for the 9-10a slot. This is a better buy for the Female 18+ demo as you would be reaching 44.2 thousand vs 32.1 thousand at a lower ($7.92 vs $8.26) cost per thousand (CPM).

An even better comparsion is made when comparing Program "F" (soap opera) vs Program "G" (homemaking show) which represent programming specifically targeting women. Program "F" gets a 2.7 rating for Females 18+ (reaching 64.4 thousand) while Program "G" only gets a 0.7 rating for the same demo (17.4 thousand). Program "F" has a lower CPP of $203.70 vs $250.00 for Program "G" So, Program "F" is a much better buy -- if you can afford it at $550. This simple comparison should be enough to discredit the absurd idea of buying media based on a predetermined number of spots for the simple reason that the same number of spots on one program vs another can yield vastly different reach at dramatically different costs.

A far more viable approach would be to determine how many viewers you can afford to reach with effective frequency. Since the minimum generally accepted frequency is three times, you might want to consider shooting for an even better frequency of four times. If you bought 400 GRPs, you could reach virtually 100 percent of Females 18+ viewers in your DMA with an average frequency of four times. Assuming an average morning and daytime CPP of around $220 (based on your avails) your budget would be $88,000. It would be much more common (trust me) to purchase around 100-150 GRPs per week. So, let's assume that you propose to your client that they purchase 250 GRPs for a two-week flight. At an average CPP of $220, this would result in a budget of $55,000.

A much quicker method for determining average CPPs would be to refer to SQAD. Since SQAD (pronounced "squad") is based on actual buys, it has the added benefit of providing you with a good indicator of what is actually being negotiated and paid vs what is presented by the respective stations on their avails. In addition to being a helpful negotiating tool, SQAD might also be helpful in determining desirable test markets based on average CPP data -- in consideration of buying power index data and other marketing research. At Davis Advertising, Inc., we strive to beat SQAD by a significant amount.

Your job as a media buyer is now cut out for you -- get your client as much "bang for the buck" as possible by negotiating rates and developing a schedule -- using avails from a variety of broadcast (and cable) stations -- that will improve the numbers significantly, maximizing effective reach and frequency...based on both quantitative and qualitative insight. That will be the subject of an upcoming blog.

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Analysis Paralysis?

Adman — Tue, 30 May 2006 16:55:00 GMT

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While attending college, I was Vice President of the marketing fraternity where I competed in a national student marketing and advertising competition of over 50 colleges and universities throughout the United States; hosted by a major "Madison Avenue" agency. My winning written plan, in addition to getting me interviewed by the college newspaper for a story (which made me even more popular with the babes -- as if that was possible), had gotten the attention of one of the marketing fraternity's professional advisors who was an account supervisor at a large local advertising agency. Although I was currently employed at the agency where I had interned, we discussed the possibility of coming to work for him at some time in the future. A couple of years later I accepted his offer to work for him as a strategic account planner and research analyst at his new agency. The agency had numerous broadcast oriented accounts including a couple of major (non-competing) restaurant chains. There were also banking and real estate accounts, among others. This agency was larger than the previous one and even more "strategically oriented." I was offered bigger bucks and a nice window office with lots of cool tropical plants and a very cool view -- people will sell their souls for a window office, eh?

As I mentioned, prior to deciding to go back to college to study marketing, I had worked as an advertising artist for several years. I also had training in developing television storyboards while attending commercial art school. As a student of marketing and commercial art, I was intrigued by the fact that -- in addition to an array of creative disciplines such as scriptwriting, casting, location scouting, set design, acting, makeup, wardrobe, voiceovers, graphics, 3d modeling/animation, camera, music/audio scoring, recording, video editing and finishing, and so forth (Whew!) -- a 30 second television spot can be the outgrowth of a very sophisticated strategic planning process.

I was always taught to have a reason for creative decision-making. While you can run the risk of "analysis paralysis," it is important to have a logical explanation for the arguments and decisions you make in developing creative work. It is also invaluable when presenting creative ideas to clients who typically (and justifiably) have numerous questions and concerns. Knowing that you have solid reasoning behind your arguments is a great confidence booster in a client presentation. After all, the client boardroom is not the place for opinions without solid support.

Journey from Concept to Creation : Broadcast

Broadcast Media (Part One).

Analysis Paralysis?