Media Guru Question:

Dear Guru,  What is the difference between Coverage(000) and Reach(000)?

The Media Guru Answers:

Coverage is equivalent to a rating, a one-time audience. Reach is a net unduplicated accumulation of audience from multiple advertising occasions. The reach of a single occasion is equal to its coverage.

All of us in the direct response industry talk about the importance of gaining further understanding of our client’s customer.   And today, frankly, we’re all in direct response in one way or another. So we employ the use of syndicated data to reveal demographics of the category, we ask our clients for studies against their own customers and we even conduct surveys ourselves in order to gain additional insight. What we are often missing in this exploration is capitalizing on our client’s own database and improving our understanding of the complexity of a target through segmentation.There is actually a wealth of information sitting in our client’s current customer database that is too often ignored. Our role as leaders in the direct response field is help, through database segmentation, to provide creative and media with an in-depth understanding of who we are trying to reach. By employing the use of long-established tools such as Prizm and GfK MRI, for example, to segment our clients’ data, we are able to not only improve testing and expand our media program, but greatly improve the creative messaging as well.

Here is an illustration of how segmentation can improve communication. Years ago, I was involved in creating the media strategy for a national pizza chain located in the Midwest. When I looked at the customer data, it appeared that a pizza purchaser was just about anybody. You needed to be an adult 18-54 and be breathing for us to sell you a pizza. It was easy to develop a media plan against such an extremely broad age cell.

However, during our planning process we went a step further and by using a combination of syndicated data we were able to actually see that this broad target was comprised of two groups of heavy pizza consumers: busy suburban moms with children present in the household and young male college students. We could make the decision to try to attract these two groups with one bland message, or we could actually create two very disparate campaigns and increase our success by speaking to these two groups in their own language.

How does the process work? We take Prizm and run our client’s database against the clusters to determine the highest indexing clusters. Once we identify the clusters, we combine clusters into groups we call Super Clusters. Then we run each Super Cluster against GfK MRI to obtain a wealth of information about the group, including not only demographic and media habit information but also extensive psychographic and purchase behavior data.

Once we obtain the segments, each group each group should be approached as its own campaign. Messaging should be focused on what appeals to that particular segment. We would be hard pressed to create a campaign that not only appeals to a busy mom but to a young male college student as well; generating two campaigns appealing to each improves our communication and our media program.

As we view the future of the television industry with addressable media around the corner, you can see how employing the use of segmentation today prepares us for the extreme nature of the segmentation of tomorrow. Used intelligently, these consumer insights can improve our clients’ business dramatically.

This commentary is insightful. I recommend it to others.

2 people recommend this article. 

One comment on “Segmentation Clarifies Direct Marketer’s Data”

1. Sarah Federman from Telmar
   commented on: August 17, 2010 at 6:30 AM
   Exactly! And with software like Telmar agencies can actually plan on their clusters. In other words, once you figure out that you are after Suburban Moms, you can find out their TV ratings on shows, websites, etc.

Media Guru Question:

I work through a third party internet company and they have put together a plan that runs launches in third quarter and 1st quarter. The client is asking why there are not savings in 1st quarter like there is in television. I tried to explain that digital is not like TV in that the viewer ship levels do not vary like TV. Is this really true? Are there studies that prove there are/aren’t seasonality’s. Can you help me with a better explaination?

The Media Guru Answer:

You’re right, internet is not broadcast. Nor is it print. Obviously, some sites are seasonal, and some categories of sites would be as well. Certain travel categoies, sports categories, automotive, fashion etc., occur to the Guru as possibly seasonal. The web, overall, is not likely to be. comScore or Nielsen//Netratings are the sources to check these data.

Question for the Media Guru

I am putting together a media plan with only print media vehicles. I am looking for a guideline as to the minimum media weight that I should be keeping in mind as I work this plan out. Maybe a minimum number of GRPS per month or maybe another measure more suited to print advertising. Another way of saying this is a minimum media weight where my investment makes an impact and is not wasted. A threshhold media weight.

 

The Media Guru Answer

In print, better to think of what percent of the target do you need to reach and how often in a month. For example, if you want to reach the majority of your target at least three time per month (“50% reach at 3+”), you would build a plan that achieves that. GRPS are less used to establish print levels; the number for a plan that delivers a reach / frequency goal can vary widely, depending on whether you are using broad reach, general coverage vehicle or highly targeted, focused vehicles. Different target groups also build reach in different patterns.

Telmar First to Avail Media Planners of Traffic Audit Bureau (TAB)’s Eyes-On Data

TAB Eyes-On Data Allows Planners to Compare and Combine Outdoor Media Market by Market with Other Media

NEW YORK– (BUSINESS WIRE) — Telmar, a global supplier of advertising media information software and services announced today the full integration of the Traffic Audit Bureau’s (TAB) Eyes-On Data into its suite of media planning services. Telmar’s integration of Eyes-On data allows advertisers, planners, and buyers the opportunity to fully realize the impact of outdoor advertising. Using the Eyes-On Data in Telmar systems, clients can use traditional media metrics such as % reach, average frequency, TRPS, and compare cost efficiencies using CPMs and CPPs. These industry-standard measurements for Out-of-Home facilitate bringing outdoor into the media mix.

“Telmar is the first to apply science to the TAB’s site level data and adapt it into a media-planning system that is fully compatible with all other media platforms,” said Stanley Federman, CEO, Telmar. “We’re delighted to provide media owners and buyers alike with a system to properly integrate this powerful media. Before the Eyes-On metrics, Outdoor as a category struggled with measurement; now it is a level playing field.”

“Media planners have always been challenged by a lack of standardized measurement when integrating OOH into multi-media campaigns,” said Andrew Marcus, VP Research for Clear Channel Outdoor. “Telmar recognized the need to put OOH in terms consistent with the advertising media industry. In order for operators to provide their clients with plans that fully integrate OOH, they needed fully compatible metrics.”

In partnership with MRI/GFK Eurisco, Telmar worked on the initial TAB Eyes-On ratings which improved the way previous metric systems measured audiences ‘likely to see’ an outdoor ad, with rich demographic and ethnographic data. Telmar brought data from a variety of sources including: recorded pedestrian traffic, circulation, and travel surveys together and applied a scientific method to the raw data.

About Telmar

Telmar is a world-wide leading supplier of advertising and media information software and services. Telmar’s 10,000 users across 85 countries include many of the world’s leading advertising agencies, publishers, broadcasters and advertisers. For advertisers and advertising agencies, Telmar provides software for survey analysis, data integration, media planning and optimization and more. For publishers and broadcasters, Telmar offers the ability to collect, store and manage media research for revenue management and optimization. Telmar has offices around the world including and is headquartered in New York City, New York. For more information on Telmar and its international services, please visit www.Telmar.com.

Contact:

G. S. Schwartz & Co, Inc.
Jared M. Kreiner / Rachel Honig
212-725-4500
jkreiner@schwartz.com

Fan Fest Venues: (260 000 people!) Elkah Stadium (Soweto) 40 000 InnesFree Park (Sandton) 20 000 Grand Parade (Cape Town) 20 000 Centurion Cricket Ground (Pretoria) 30 000 New Beach (Durban) 25 000 Mangaung Outdoor Sports Centre (Bloemfotein) 20 000 Bergvlam High School (Nelspruit) 30 000 Bergvlam High School (Port Elizabeth) 25 000 Polokwane Cricket Club (Polokwane) 30 000 Fields College (Rustenburg) 20 000 Top 3 Viewed Matches  SA vs Mexico       13 605 000 Italy vs Paraguay   11 658 000 Uruguay vs France     11 487 000	Soccer World Cup 21 Update 25 June 2010 Probably the most talked about event since the 1994 elections is underway. Did it have the impact that people were expecting? Well, in South Africa on the afternoon of Friday 11th, soccer is pretty much all that was happening. A fortunate few (84,000) were able to attend the opening ceremony and the SA vs Mexico match at Soccer City. A high percentage of the rest of the country was watching the event at either one of the “Fan Fest” venues or on television. In South Africa, at the peak of the viewing (17:30) an estimated 10 421 million individuals (4 years+) were watching the game on television at home. This does not include the many thousands who watched at friends, restaurants, pubs, and other central venues. The match took 86%-90% share of all television viewing between 16:00 and 18:00. Over 6 million people watched the opening ceremony. 2010 – South Africa vs Mexico SABC 1 Viewer Profile
# Date / Time Match Venue Stage 1 Jun 11, (4:00pm SA local) South Africa 1 – 1 Mexico Soccer City, Johannesburg Group A 2 Jun 11, (8:30pm SA local) Uruguay 0 – 0 France Green Point, Cape Town Group A 4 Jun 12, (1:30pm SA local) Korea Republic 2 – 0 Greece Nelson Mandela Bay, Port Elizabeth Group B 3 Jun 12, (4:00pm SA local) Argentina 1 – 0 Nigeria Ellis Park, Johannesburg Group B 5 Jun 12, (8:30pm SA local) England 1 – 1 USA Royal Bafokeng, Rustenburg Group C 6 Jun 13, (1:30pm SA local) Algeria 0 – 1 Slovenia Peter Mokaba, Polokwane Group C 8 Jun 13, (4:00pm SA local) Serbia 0 – 1 Ghana Loftus Versfeld, Tshwane Group D 7 Jun 13, (8:30pm SA local) Germany 4 – 0 Australia Durban, Durban Group D 9 Jun 14, (1:30pm SA local) Netherlands 2 – 0 Denmark Soccer City, Johannesburg Group E 10 Jun 14, (4:00pm SA local) Japan 1 – 0 Cameroon Free State, Bloemfontein Group E 11 Jun 14, (8:30pm SA local) Italy 1 – 1 Paraguay Green Point, Cape Town Group F 12 Jun 15, (1:30pm SA local) New Zealand 1 – 1 Slovakia Royal Bafokeng, Rustenburg Group F 13 Jun 15, (4:00pm SA local) Côte d’Ivoire 0 – 0 Portugal Nelson Mandela Bay, Port Elizabeth Group G 14 Jun 15, (8:00pm SA local) Brazil 2 – 1 Korea DPR Ellis Park, Johannesburg Group G 15 Jun 16, (1:30pm SA local) Honduras 0 – 1 Chile Mbombela, Nelspruit Group H 16 Jun 16, (4:00pm SA local) Spain 0 – 1 Switzerland Durban, Durban Group H 17 Jun 16, (8:30pm SA local) South Africa 0 – 3 Uruguay Loftus Versfeld, Tshwane Group A 20 Jun 17, (1:30pm SA local) Argentina 4 – 1 Korea Republic Soccer City, Johannesburg Group B 19 Jun 17, (4:00pm SA local) Greece 2 – 1 Nigeria Free State, Bloemfontein Group B 18 Jun 17, 2:30pm (8:30pm SA local) France 0 – 2 Mexico Peter Mokaba, Polokwane Group A

]]> http://www.telmar.com/soccer-world-cup-2010-update/feed 0 http://www.telmar.com/media-guru-qa-connections-planning http://www.telmar.com/media-guru-qa-connections-planning#comments Tue, 22 Jun 2010 15:15:42 +0000 sarah http://www.telmar.com/?p=1268 Question:  

I want to more formally embrace and practice “connections” planning. Do you have any resources or recommendations on where to learn best practices and tactics to help a media team start thinking with a “connections” planning mindset?

Answer: 

http://www.imediaconnection.com/content/26933.asp

It’s impossible for humans to track every client demand and cancellation over time, creating a need for another solution In combination with other online metrics, revenue management systems help agencies and publishers maximize value and take advantage of demand Revenue management solutions give agencies and publishers real-time data to help extend or pull campaigns

When asked about how his ad agency relationship, an online publisher might respond, “Agency? What agency?”

That’s an extreme example, but one that may make many publishers nod in agreement. Over the past few months, the digital content shift has changed the relationship between advertising agencies and online publishers. In the United States, online ad spending has just surpassed print. This means that publishers’ sales houses and agencies must develop a new kind of relationship if they are to have one at all.

For example, last year a major online publisher in France sold one of its banner ads by posting it on eBay. The publisher reported very positive results.

How can agencies play a role in this new game?
The changing digital space is nothing to smile about for many publishers or agencies, nor is the proliferation of free content. Agencies can support online publishers by finding new ways to quantify the value of ad space, integrate content with brands, and charge again for formerly free online content.

Revenue management (RM), including the concepts and software solutions, offers just that. RM originates in the travel industry. Anyone who has ever purchased a last-minute ticket to Paris in August or Denver over Christmas has felt the sting of this reality. The value of a seat changes depending on the time of travel, destination, and the number of days until takeoff.  Airlines greatly increase their rates as a result of their RM, otherwise known as yield solutions.

How does this relate to media?
Seats are perishable, just as are spots, ads, or banners. Therefore, in the media business, RM solutions help businesses free up ad space and increase revenue for any media. Moreover, RM solutions can help publishers and advertising agencies negotiate more effectively, adding more value to both parties.

No human mind could possibly track all the demands and cancellations of every client over time. Even if you think you can, you often provide inflated discounts to certain clients while wrongly punishing others. RM systems record behavior, make projections, and offer pricing models based on constantly updated information. The result is that loyal clients will be rewarded and receive discounts based on actual versus perceived value.

For example, let’s say Client A buys 10 percent of the available ad space early in a TV season, but always cancels 3 percent at the last minute. Let’s say Client B will pay more and rarely cancels. Our solutions will warn the sales house not to accept the first offer of Client A in order to retain some of the ad space for B.

How can this apply to new technology?
The iPad, soon to be accompanied by various other fancy handheld ways of consuming the work of publishers, will force publishers to adapt quickly. The Economist has been successfully making the transformation; it remains a subscription-only publication and has the most subscribers of any online publication via the iPad. In fact, the magazine is willing to go 100 percent digital if that’s what the world demands. At a media conference in 2009, The Economist announced its uncertainty about maintaining a print addition in five years. This means that all revenue will have to come from subscriptions and digital advertising. RM can help the magazine through digital channels as successfully as it can via print.

Apple’s iPad and other devices may even provide better tracking information, making the system’s recommendations that much more powerful. Advertisers will always want to be where there are eyeballs and credit cards, and these are both still everywhere. Loyal, affluent readers remain glued to The Economist. RM solutions can help online publishers quantify the value of their advertising across all media from banner ads to pay-per-click ads. Their ad space still has value and adding other metrics allows us to simply deepen the solution. All the demands for ad space are fed directly into the system, updating constantly and reallocating the ads to ensure that reach goals are met. In this sense, online media becomes more like television.

With more immediate feedback on readership — similar to overnight ratings — publishers and advertisers will be able to know if a given campaign reached the numbers assumed and if they reached their target number of clicks. They can manage the campaign live, extending it to reach optimum numbers or retracting if the ad flops. Advertisers and publishers can adjust in real time and agencies can help them do this with RM tools.

For agencies today, the majority of print planning relies on surveys conducted often no more than two times per year. TV advertisers and agencies, on the other hand, have benefitted from overnight ratings for many years. As a result, they can adjust campaigns throughout the season. Agencies and advertisers can now work similarly with online publishers. The information of demands and readership, along with other metrics available (such as click-throughs), can be reported, offering a better measurement of campaign success.

How many solutions are in the marketplace?
Currently, revenue management solutions are available from Telmar Worldwide and Mereo in France. There are also similar services available from RSG Media Systems, Rapt, Yield Solutions, and Fivia. While all good companies, these solutions cover only some media and therefore provide a less comprehensive solution for all media sales houses.

Overall, the RM solutions available on the marketplace have bridged the gap between advertising agencies and online publishers’ sales houses. Now, media owners can benefit from knowing the true value of their media. Meanwhile, agencies and advertisers can now be rewarded for their loyalty and receive pricing proposals more in-line with the true value of the opportunity.

As the Indigo Girls often belted out, “Everything is different, but nothing has changed.”

Stanley Federman is chairman and CEO of Telmar.

http://www.imediaconnection.com/content/26933.asp