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Week 7: Communication 2 - Advertising media metrics - Coggle Diagram
Week 7:
Communication 2
- Advertising media metrics
Reach and frequency
Reach
: # or % of population exposed to advertising at least once (for a
specific period
)
examples: page 4
Rating points = 100 x (Reach/ Population size)
(it is the
% reach
)
gross rating points (GRP) = impressions/ population size
(
sum/ aggregate
reach of a campaign)
GRPs is an
important determinant
of
media price
GRPs is the
sum of rating points
of
all the media vehicles
that deliver an advertisement
Frequency
:
average
number of times those reached are
exposed to advertising
Impressions
Impressions = Reach x Average frequency
exposures or opportunities to see/ hear
estimate of audience
for a media
insertion
or a campaign
Advertising campaign metrics calculation
example: p.7- 9
high reach and frequency is desirable but
costly
=> marketing planners need to
trade- off
between reach and frequency
high reach and low frequency
(danger of being lost in a
noisy marketing environment
)
low reach and high frequency
(can
over- expose
some audiences and
miss
others entirely)
planners need to
balance
both reach and frequency
Target audience analysis
target audience = a
subset
of total audience
TARPs
: target audience rating points
target audience campaign metrics calculation (
p.12 - 14
)
TARPs
is the
sum
of rating points of all the media vehicles that deliver an advertisement
among target audience
net reach
(p.15): an advertisement through
different media
can end up
reaching the same audience
=>
'net'
emphasize that the audience is
not duplicated
Frequency response models (
p.16
)
Learning curve response:
S shaped curve
Threshold response
at a certain point
, message becomes
fully effective
(
no effect below or above that point
)
Linear response
relationship
between
advertising outcome
and
advertising frequency
graph
(p.17)
Effective frequency
a
minimum number of impressions
is required before being able to influence an audience member
effective frequency
depends on
Their
loyalty
to the brand
Message
creativity
Audience level of
awareness
of the brand
Level of influence
sought by the marketer
wear- in
:
frequency required before
a given advertisement or campaign
achieves a minimum level of effectiveness
wear- out
:
frequency at which
a given advertisement or campaign
begins to lose effectiveness or even yield a negative effect
effective reach
: # or % of audience that
receives an advertising message with a frequency
equal to or greater than the effective frequency (
example: p.19
)
Calculations
Share of voice
(%) = Brand advertising (
$ or #
) / Total market advertising (
$ or #
)
Comparing advertising costs
Cost
per 1000's
impressions ($) = Cost of advertising/ (
Audience size/ 1000
) = Cost of advertising/
Impressions generated in 1000's
Advertising elasticity of demand
= Change in quantity demanded (
%
)/ Change in advertising spending(
%
) =
[(Q2- Q1)/ Q1]/ [(A2 - A1)/ A1]
Advertising elasticity of demand:
linear model
(p.24)
Optimal advertising spending
(p.27)
Carry- over effects
of advertising
advertising affects
future demand
of product as well
Koyck model
(p.25)
Adstock model
(p.26)