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Guru Search Results: 5 matches were found

Thursday, January 03, 2002 #4973
Can you please explain the difference between TV network and spot buying. What is the equivalize and non-equivalize concept. Why is it used in network buying and not in spot(units are not equivalized). Also can you please explain the reweight concept. How do you come up with reweight cpm. Why can you just do a straight year cpm comparison.

The Media Guru Answers(Friday, January 04, 2002 ):
Click here to see past Guru responses about equivalizing. "Why use it?" is a good question regardless of the network versus spot element. The use of equivalence is an artifact of mass buying by corporation wherein large numbers of :15's and :30s are bought but need to be readily comparable. In spot, this type of buying is less common. Also, network :15s are almost alwasy priced at 50% of :30's making equivalence simple. In spot the ratio is usually higher, and inconsistent.

In network, the geography for cpp / CPM is consistent, so that cpp and CPM can be converted back and forth based on simple multiplication or divsion by the relevant demographic universe. In spot however, while cpp is based on the defined DMA (or occasionally metro) geography, CPM is based on impressions generated anywhere, so there is no simple mathematical relationship.

For other network buying concepts use the Go to the Guru Archives Search Engine.


Wednesday, May 02, 2001 #4357
How do I convert CPM's from SPARC to cpps by market?For example, NY radio Average CPM for 3Q 01'=8.40 for A18-49. Its population is 8097000.

The Media Guru Answers(Saturday, May 05, 2001 ):
Think of the cpp as the cost of 1% of the specified population. So, the general rule for CPM vs cpp is
cpp = cpm X 0.01 X population in thousands.

This requires the cpm and cpp to be based on the same geography, so be careful. If you're working with DMA CPM and DMA cpp, that's fine, but typically cpm is based on total survey area (TSA) and you are looking for metro cpp.


Thursday, May 11, 2000 #3461
Is it possible to derive a demo rating from a given household rating, assuming I have populations for both? I'm trying to convert a household cpp to a specific demo cpp. thanks.

The Media Guru Answers(Thursday, May 11, 2000 ):
No, you need vpvh, because the rating among people will not necessarily be the same as among HH. Without that linking data the popualtions are no help.


Tuesday, October 08, 1996 #1133
I wonder if you could enlighten me on your thoughts onthe following: currently, within our market, we lookat cost per point (cpp) for TV. This has been the casefor a number of years now. Recently, however, certainTV stations have been trying to encourage the use ofcost per thousand (CPT). Is there any right or wrongway of looking at a cost measurement for TV?My thinking is that CPT does not prove to be stablewhen measured across a time period, simply becauseuniverse sizes change over time (thousands do increasebut not necessariily the penetration into a market).Therefore CPT could be used when measuring off the sameuniverse size, but is not feasible in showing trendsover different years using different universe sizes.CPT works to the advantage of the media owners as it isseen as much less of an amount than a cpp is (at themoment)???Please help.

The Media Guru Answers(Wednesday, October 09, 1996 ):
The issues you raise with the use of CPT as against cpp are real, particularly in that when you have people meter data and the universes are changing they will affect the 'thousands' calculated conceivably more than the change in the audience itself.

In people meter panels the universe can vary if it does not form part of the weighting cells.

In addition as a rating using people meter data is a time weighted average it is not strictly speaking possible to convert them into whole 'people'.

Selling or buying TV based on CPT derived from respondent level people meter data would be fraught with hidden difficulties for both the users and the TV stations.

Note that this question was posed about the South African market.


Monday, February 19, 1996 #1757
Television's (network, spot are cable) and radio's (network and spot) advertising costs are typically measured in cpp's (cost per rating points). On the other hand, Newspapers' and magazine's advertising costs are measured in CPM's (cost per thousand). It seems the Internet is moving towards the CPM model and I have no idea how "out of home" or Direct Mail are measured. Apples to apples, based on CPM, how do these mediums compare on cost? -- how about ROI?

The Media Guru Answers(Thursday, February 22, 1996 ):
First, understand that cpp and CPM are just cost indices rather than "measures." CPM (cost per thousand audience impressions) may be converted easily to cpp (cost per percentage point of population universe):

cpp = CPM x universe in thousands x .01

or

CPM = cpp / (.01 x universe in thousands)

CPM is simpler to deal with because we only need to know the audience exposed, a figure just beginning to be reported on the internet. cpp requires us to know a "universe," the number of people in the whole category under discussion. For the internet, or more specifically the WWW, where ads are usually found, universe is a hotly debated question. Is it the number of people with computers and modems or the number of people with the theoretical possibility to browse the web (an ISP and browser software) or the number of people who actually ever do use the Web? Even if we pick one of these, there are radically varying research estimates of the size of these possible universes.

If we decide to just use the total population as a universe for internet measurement, the ratings are agonizingly small, and we are still working toward how to define the rating. In print, no matter how often a reader picks up the same issue of a magazine, he or she only counts once in that issues impressions or rating. But website accesses are usually counting multiple weekly visits without the ability to distinguish repeats of the same viewer. There is not yet any common ground in pricing to talk of averages. There may be over 100,000 commercial sites, more than all the tv, radio and print vehicles put together.

The comparison you suggest between all media cpms also changes as we define which demographic to consider. TV has established averages to consider and companies like Spot Quotations and Data SQAD@ix.netcom.com publish these cpm/cpp.

Print may vary from $5 to over $200 cpm depending on selectivity of audience and total circulation.

ROI can't be discussed without knowing the goals and depends on ad content, other marketing efforts and how revenue is measured. Web site development and web ads may be meant to sell product, build image or just bring viewers to sites. Web advertising needs to be evaluated against very goal specific potential and possibility.



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