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Media Guru

Guru Search Results: 41 matches were found

Wednesday, October 06, 1999 #2854
What are the advantages/disadvantages of advertising during sweeps? We have a client who is TOTALLY hung up on advertising during sweeps. Isn't there a lot of self-promotion going on in TV? The client is a newspaper. Also, I've heard that political advertising during the fourth quarter 2000 is projected to be phenomenal. Do you have any information on how advertisers are reacting? Thanks!

The Media Guru Answers(Thursday, October 07, 1999 ):
It is true that ratings are higher during sweeps, because programming is selected to increase audiences when they are being measured. And yes, there is a lot more self promotion in these periods.

But, assuming your client is going to buy "X" GRPs, they will get them with fewer announcements in a sweep than otherwise. If it takes 20 announcements to get 100 GRP in October but only 15 to get 100 GRP in November, the difference to the advertiser should be infinitesimal in terms of more impact. If any measurable effects are seen, there would be a hair more reach and a speck less frequency in the sweeps scenario. The cost per point might be higher.

Political advertising surges during every presidential election. Advertisers will not be visibly reacting today, since Fourth Quarter is sold as the first quarter of a network's year. When Q4 2000 selling starts to move next May, the upfront advertisers will secure their time comfortably. Some advertisers who don't usually buy upfront will. As the year goes on, some money which would have been spent in some places will go elswhere, network to spot, TV to radio, broadcast to print.

It happens every four years and used to be worse when both summer and winter Olympics fell in these same presidential election years.


Wednesday, September 29, 1999 #2836
How often are the SQAD cpp's "Refreshed"? What does the designation "CF" stand for? It appears to signify late fringe or late night. Thanks

The Media Guru Answers(Wednesday, September 29, 1999 ):
SQAD TV cpps are updated monthly. "CF" is combined fringe, the early fringe/late fringe average.


Wednesday, September 22, 1999 #2817
looking for a source on planning cpps for network tv

The Media Guru Answers(Thursday, September 23, 1999 ):
SQAD can supply network planning costs.


Thursday, August 19, 1999 #2729
Dear Guru, 1- Please let me know SQARE model that SQAD use to calculate cpp for TV and Radio. Please let me know the detail or any link I can find more information or books... 2- Do you know any model for reach vs GRPs? Our client ask us to show the data like that. The problem that we try to find the suitable daypart mix, station mix, medium mix that is good for our advertising strategy but we don't have any optimiser programs. We have only ratings data like Telescope and Prinscope of ACNielsen. Do you know any example to solve this kind of problem? 3- Our client also want to have a model to set advertising budget to get for example 80+ reach but we can not know until it happen. How to solve this issue? warmest regards, Thai Vang

The Media Guru Answers(Thursday, August 19, 1999 ):
A general explanation of SQAD's model is available from SQAD. They will give you the same information they would give the Guru. But the essence is manipulating actual buying data in real situations, provided confidentially by actual media buyers.

GRP's and reach do not have any standard realtionship, except within given media and population parameters. You are writing from Viet Nam, where Televison audience cume patterns are likely to be quite different than in the U.S. Even within the U.S., Hispanic TV reach curves are very, very differerent than the General Market TV reach curves.

The way to build a model, to oversimplify, is to collect a great number of actual reaches of real schedules, and then plot their frequency against reach in a regresssion analysis, which gives you the formula for the "curve." Frequency is plotted, rather than reach, because frequency is a straight line while reach is a curve. The curve formula then allows you to create a model with a reach solution for any GRP input. The more variables you use to build different curves, the more sophisticated your model can be.


Friday, August 06, 1999 #2693
I would like to know the following: 1) how to set the effective reach/frequency for various category of Products viz fmcg, durable, etc. 2) what would be the ideal effective r&f for various categories 3) should the selection of program be based on cprp or do you have any Other method. Thanks

The Media Guru Answers(Friday, August 06, 1999 ):
1) & 2) Effective reach does not depend on category, but on analysis of several factors:
  • Complexity of message
  • Ad unit
  • Competitive pressure
  • Clutter in the media used
  • Budget
  • Etc.

Some of these factors will be generalizable for categories, but they will be narrow categories, like "imported sports cars priced from $50,000 to $75,000," and not as broad as "durables."

Click here to see past Guru comments on effective reach

3) Program selection may be based on cprP, but there are several other factors:

  • Suitability of program content
  • timing
  • program content synergy with ad message
  • package pricing of total buys with and without the program
  • contribution to reach, etc.


Thursday, July 29, 1999 #2671
1.Can I get 2nd Q SQAD cpp by narket rank? 2. Where can I find Supermarket information, such as end isle values, value of displays by foot traffic, etc.?

The Media Guru Answers(Saturday, July 31, 1999 ):
1) AMIC's Ad Data area

2) In store, POP sellers will have this information. Try The Point of Purchase Advertising Institute


Wednesday, July 21, 1999 #2651
At what point in spot market TV buying does it become more efficient to buy network?

The Media Guru Answers(Friday, July 23, 1999 ):
It varies depending on demographic, daypart and whether you are buying simply based on market size or based on something particular to your advertiser like market sales rank. But, assuming a Primetime Houshold :30 cpp is about $14,000, you could add up market cpps at our SQAD page until you hit that number.

In Prime the answer might be the top 20 markets; in Day, the top 65.


Friday, July 16, 1999 #2641
Here's a basic math question for you: I recently bought a media (TV) schedule that gave me a total A18-49 delivery (in 000's) of 45000, 89 spots, total cost = $1,300,000. Knowing that the total A18-49 universe is 61350 (000), how do I find the following?: 1) total GRPs delivered 2) total cpp

The Media Guru Answers(Friday, July 16, 1999 ):
The GRP equation is 45,000,000 impressions divided by 61,350,000 universe, expressed as a percent, or 73 GRPs.

The cpp equation is $1,300,000 cost divided by 73 GRPs or $17,808 cpp

Guessing this is national cable, it seems high. to the Guru.


Wednesday, July 14, 1999 #2629
Dear Guru, Could you please tell me what is "cost per reach"? Is it just to divide the spending by net reach? Do you have standard to evaluate "cost per reach"?? Thank you very much.

The Media Guru Answers(Wednesday, July 14, 1999 ):
Cost per reach can be cost per Reach point which is like cost per point and is spending divided by percent reach OR c.p.m. reach, which is spending divided by thousands reached.

Like cost per point, it doesn't depend on a standard, but is used as a comparison in planning. It varies across media, media types and countries, of course.

For example, in the U.S., the scenario might be, Prime time evening television is the best generator of reach for X number of GRPs. But, daytime TV might deliver more reach per dollar invested at first, until the daytime reach curve flattens. Or the first 50 reach points in Prime might have X cost per reach and the next 10 reach points added in prime might have 2X cost per reach.


Thursday, July 01, 1999 #2600
I'm coming from a traditional general market media background and am moving to a sophisticated direct response company. What are the primary criteria I should address in negotiating DR rates (on net cable or synd radio) vs. a fixed position schedule? cpp has become irrelevant. We just want the lowest unit rate that will clear. Any tips? (by the way, the DMA is no help here).

The Media Guru Answers(Friday, July 02, 1999 ):
In DR, response is what matters, and it has little to do with cpp, or rating. You need to track response by station, daypart, program type, etc. and buy based on what delivers.


Friday, May 28, 1999 #2540
What is the average cpp for local radio?

The Media Guru Answers(Friday, May 28, 1999 ):
See AMIC's Ad Data area


Friday, May 21, 1999 #2522
I have a 13 year old son that wants to learn about the marketing business and the vocabulary used. Example: Definitions of cpp, Quintile etc... Where or what is the best resource for marketing/advertising terminology?

The Media Guru Answers(Friday, May 21, 1999 ):
You can buy text books- see AMIC Bookstore (in association with Amazon.com)

You can look up many terms in the Media Guru's Media Guru's Encyclopedia of Media Terms.

Finally, most common media and marketing terms have been discussed here, by the Guru, in a context of practical application. Go to the Guru Archives Search Engine. Use whatever word you want explained as your search term.


Thursday, May 20, 1999 #2518
Years ago, a broadcast buyer gave me a rule of thumb on comparing quarterly cpps. I know there are changes by market and by media (radio/TV) but it seemed that the following indices were applied to a avg. year cpp: Q1: 85, Q2: 106, Q3: 97, Q4: 112. Do you know if these are accurate?

The Media Guru Answers(Thursday, May 20, 1999 ):
These are roughly -- directionally -- correct, with the exceptions you note.


Wednesday, February 17, 1999 #2344
How do you calculate the average radio or TV cpp for a specific market?

The Media Guru Answers(Wednesday, February 17, 1999 ):
It depends on what data you have to work with and how you want to describe your result.

The general rule is to add up all the GRPS delivered and all the costs. Then divide total cost by total GRP.

But this assumes you are working with some real numbers, either a past buy or proposed schedules. Averaging cpps directly is usually wrong. If you have only cpp's to work with, you will need to get either their associated costs or associated ratings to work back into the numbers you need for accurate averaging.


Thursday, February 04, 1999 #2309
Dear Guru, I was wondering if you could tell the average cpp for women 18+ for 100 GRP's in the top 20 markets.

The Media Guru Answers(Friday, February 05, 1999 ):
AMIC provides recent SQAD HH spot costs per point for all markets in the Rates, Dates and Data area


Tuesday, January 26, 1999 #2289
Is there a formula that radio stations use to determine the rate an advertising agency or buying service must pay for advertising? Also, would you know what the Total HH Universe for Radio in America is , or where can I find this information?

The Media Guru Answers(Tuesday, January 26, 1999 ):
In setting rates, of course a station must cover its costs of operation. But radio is a negotiable medium and the station has to consider what the marketplace pricing (cost per point) is for the demographics in which they have strength or wish to sell.

The U.S. Household universe for radio is the total household universe, or roughly 100 million. But, because radio is a highly personal medium, and audiences are based on individual listening, households are not considered relevant for radio. Radio ratings for households haven't been provided in standard research for 30 years or more.


Thursday, January 07, 1999 #2253
How can I use Spot Quotations and Data (SQAD) quarterly TV Cost Per Rating Point Report (HH Ratings)to calculate CPM? Whether SQAD has info. of CPM for each DMA?

The Media Guru Answers(Friday, January 08, 1999 ):
There is a small difficulty in that the total audience usually used to calculate cpm extends beyond the DMA. But for your purposes this can probably be ignored.

"Cost per Rating Point" means the cost of buying audience impressions equal to one percent of the population. Therefore, dividing DMA cpp by 1 percent of the DMA population yields DMA cpm.


Tuesday, December 22, 1998 #2232
We use a buying service for our media. I'm just learning and was asked what seems a simple question, but do I have all the elements and could you help me to formulate the equation to learn. We are running 125 TRP's weekly in radio flighted thoughout the year. 3,000 total TRP's for the year. $550,000 total budget. cpp ranges from $32 to $200, average is $90. Q. With 125 TRP's a week, approximately how many spots a week will this schedule produce?

The Media Guru Answers(Wednesday, December 23, 1998 ):
The Guru assumes you are running 125 GRP in each market.

Depending on market and demographic, average ratings run from about 1.0 - 2.0 on top stations. Divide GRP by the average rating you will buy to estimate number of spots. At an average rating of 1.0, 125 GRPs represents 125 spots.

And you didn't need any of that cost or cpp data.


Wednesday, December 02, 1998 #2194
Dear Guru, can you name any media analysis tools and media predictive tools that media planners use on a regular basis without being too technical, of course. Many thanks

The Media Guru Answers(Thursday, December 03, 1998 ):
Here are several:

  • Reach: the number of different target households or persons exposed to a campaign (most often expressed as a percentage of the target universe, and most often calculated over a 4-week period).
  • Frequency: The average number of exposures of the campaign to those reached.
  • Gross Rating Points (GRP) / Target Rating Points(TRP): Essentially interchangeable terms for the sum of the audiences of all the ad units in the campaign, expressed as a percentage of the target universe.
  • Gross Impressions: Same audience count as GRP/TRP but expressed in whole numbers rather than percents.
  • cpp / Cost per GRP and CPM / Cost per thousand impressions: should be self evident from the previous. These are referred to as the "efficiency."
  • Effective reach: Those in the "Reach" who experienced a specified minimum number of exposures (effective frequency)

All the above stem from the audience research tools and investment figures. So called "reach and frequency" systems typically generate all these figures.

Other tools, especially in print media are also occasionally used. These may include "time spent with" media vehicles, "page openings", attentiveness, etc.


Tuesday, December 01, 1998 #2189
Dear Guru. I've got several questions. 1. What is the difference between the following three types of compensation for the ad agency services: commission, fee and percentage? Are there any other compensation systems used by the ad agencies? 2. What is the right way to evaluate the efficiency of the advertising campaign: a) held in several cities at the same time (each city has its' own media vehicles and their ratings are measured for the target audiences based in those cities); b)using several medium at once (i. e. TV and print). 3. How can we measure the effectiveness of the outdoor ad campaign? Thank you in advance.

The Media Guru Answers(Tuesday, December 01, 1998 ):
  1. Commission is based on a percentage of the agency's spending on the advertiser's behalf. The spending will primarily be media purchase and (in the U.S.) traditional commission, usually included in media rate cards, is 15% of the gross spending. Other expenditures, such as production, are marked up 17.65% of the net spending; this is exactly equivalent to 15% of the gross.

    Fees are flat amounts of compensation for performing agency tasks. On very small accounts, 15% commission may not cover the work required to create and place advertising. On very large accounts, 15% far exceeds what would compensate the effort.

    By Percentage the Guru imagines you mean an agreed commission other than the 15 / 17.65% structure.

  2. Efficiency is typically expressed in one of two ways: cpp - Cost Per gross rating Point or CPM - Cost Per thousand audience impressions (Roman numeral "M")

    In comparing markets, cpp is problematic because the universe number for calculating the Points - or percentage of universe - changes. However, CPM just uses impressions, which can be added and compared across markets. Other issues, about units and print versus broadcast can merit separate consideration, but these would be beyond efficiency.

  3. Effectiveness measures depend on a definition of the effect desired; is it awareness or sales or share? To best measure outdoor specifically, you need to set up your standard of effect and measure it with and without outdoor.


Friday, November 20, 1998 #2165
I have to do a media plan for a gourmet mustadrd of the New England poblation with $20,000. What should I do?

The Media Guru Answers(Friday, November 20, 1998 ):
New England has a population of over 13 million and is made up of 9 media markets, including the very large Boston and Hartford / New Haven. The Prime Time spot TV cost per point for Boston alone is in the range of $1000.

Even small space newspaper or late night tv ads across the area will cost a few hundred dollars each in the larger markets.

The budget does not seem realistic for anything you could call a campaign.


Monday, September 14, 1998 #2042
I have been asked by a potential client about cpp's for demos in Netherlands, Belgium, and Austria. I own an ad agency in Atlanta, GA USA. Can you tell me where to find this information? Sincerely, Robert Davis Adman4@ix.netcom.com

The Media Guru Answers(Tuesday, September 15, 1998 ):
The biggest international agencies, like Cordiant or Y&R, publish country-by-country media fact books which can be purchased. Otherwise, International Media Guide will provide rates, but probably not audience figures.


Monday, August 24, 1998 #2011
We are in the process of planning for a major TV client where we have been applying the recency theory for the past year. Because of the size of the budget we have been limited to around 70TRPs weekly essentially for the entire year. In Year II our client has asked us to consider temporarily abondoning the recency theory and to move dollars (and TRPs) out of the more expensive buying months (April, May) to the relatively more more inexpensive months (January, Feb)and to increase our TRP levels accordingly. Do you have any input on which strategy should/could have more effect on brand performance assuming all other factors are equal (pricing, distribution etc.)?

The Media Guru Answers(Monday, August 24, 1998 ):
First we have to assume that the basis of recency theory is accepted.

Recency theory calls for reaching as many people as possible as close to the sale as possible. Thats's why continuity is emphasized for products with little seasonality and regular purchase cycles.

One of the essential elements of recency theory is that not all impressions or GRPs are equal, even in the same programming. You are focusing on cost per point. As you are probably aware, reach developed per GRP decreases with every added GRP in a schedule. There is therefore, a declining return on investment in reach at any point in time, which is why spreading out prospects reached produces the optimal return. The first 10 GRPs bought in a week generate more reach than the last 10 GRPs.

Hence, the added impressions bought when they are cheap produce less sales than the impressions lost from the more expensive times.

So now you have to evaluate what might be produced. Assuming you are lowering -- not eliminating --activity in higher priced periods how many more impressions, and how much more reach can you achieve in low priced times. If you cut back 10 reach points per week in July but buy 20 added reach points per week in March, perhaps the added reach can sell more than the lost reach, or perhaps not. The Guru would look for a 50% minimum trade up in added vs lost reach points to justify the change; i.e. if the plan goes down 10 reach points per week in one period, then it need to go up 15 reach points per week in the other.


Monday, August 24, 1998 #2010
Thanks for this great service. I represent a radio syndication operation that has a unique opportunity to provide a media buying service for an advertising rep firm. This firm would like us to create a network of stations that provides a 1.4 AQH Rating for A18-49 at $1,425.00 cpp. We can easily create this network of stations and get $570.00 cpp. How do we charge this rep firm for our service?

The Media Guru Answers(Monday, August 24, 1998 ):
Somewhere between $671 ($570 "grossed-up") which is what a rep might get with commission, and $1425, which is the price your client offered to pay. From there the decision will be based on your relationship and what you hope to do in the future


Friday, August 21, 1998 #2009
I'm having a difficult time trying to find any material that will teach me how to use cpp when buying network and spot radio. My contacts in the advertsing field tell me that they learned how to use this formula through experience. I know the formula for cpp. However, is there any resource that will show me how to implement cpp when buying network and spot radio? Something that will show me some shortcuts or maybe some examples? Thanks again for your help.

The Media Guru Answers(Friday, August 21, 1998 ):
Once you know how to calculate cpp, its uses are pretty straightforward.
  • cpp is an efficiency indicator. Media proposals you are considering can be ranked from lowest cpp to highest if efficency is a goal
  • cpp can be a goal you give to sales people, e.g. "I'm buying a $100 Women 18-49 cpp, what avails do you have at that pricing?"
  • cpp can be weighted with other factors like rating size or cume
  • cpp can be used to caluculate cpm when the universe is known: cpp divided by 1% of the universe expressed in thousands yields cpm
    (this is only valid when rating and audience in thousands come from the same geography as they do in Network. In spot, where you may use a metro rating but TSA thousands , the formula is imprecise at best)
  • cpp can be used as a bottom line number to compare possible schedules you are putting together

Remember - never average cpps themselves; total the costs and total the ratings of schedules and calculate the bottom line cpp from the totals.


Friday, July 24, 1998 #1972
As an agency, we believe that we have made a smart and cost-effective media buy for 1998. We would like to show our client how smart the buy is in what really matters to them: dollars. Our media buy was not made to copy another so we have no base of comparison. As "an account guy" I don't have the total media knowledge of how to show savings. I have suggested building a model that shows a client that would make a buy within the market paying "average cpps." With these average cpps we could turn around and compare the cpps we paid per daypart and show a savings. Is there a better way, in your mind, to show dollar or percentage savings?

The Media Guru Answers(Friday, July 24, 1998 ):
SQAD is the leading purveyor of market average cpps for General market TV and Radio, Hispanic and other broadcast elements. Recent, sample SQAD costs are available in AMIC's Rates, Dates and Data area.


Tuesday, July 21, 1998 #1966
Sports radio networks rarely, if ever, give CPMs and TRPs for the proposals presented. When asked to provide this info, they cop-out saying "well, other agencies (i.e., JWT, Bozell, BBDO) buy our network." I understand there is a premium to associate yourself with a high profile sports team, but at what cost? Without having resources to evaluate each and every radio station in the network, how can I accurately present these proposals to my clients? Currently, I figure: total market cpp x average rating x number of spots x number of games scheduled + added value = total package value. Am I accurate?

The Media Guru Answers(Wednesday, July 22, 1998 ):
When the Guru buys sports neworks, he gets audience and efficiency data. If you are saying that the networks give national data but not individual market rating, that's a somewhat different issue.If you are buying a team, its value is probably in its home market. If a network is only sold in total, what will you gain by identifying a weak station? If you have all the data to execute your formula, you should do fine.


Friday, May 29, 1998 #1616
I really appreciate this section of your web site. It is a great idea! I deal with network radio. We produce 2-minute radio vignettes for advertisers. Each vignette includes sixty- seconds of entertaining new content that relates to the advertiser's product and sixty-seconds for their commercial. The content of each feature is designed to help to sell the product. When trying to determine the cpp for a 2-minute vignette like ours, would you consider the vignette to be a 2-minute commercial (two :60s) or would you consider each vignette to only contain one sixty-second commercial?

The Media Guru Answers(Tuesday, June 02, 1998 ):
cpp is a simple calculation. Divide cost by rating. Length is not a factor. Sometimes buyers will create a special cpm adjustment based on length to compare different units.

If your content is a message about the specific product, you could count the whole 120 seconds. This makes no difference, except in the buyer's special case, mentioned above. Or, you can treat it as two :60's, which does make a difference, because the cost is then divided between the two commercials.

If, on the other hand, it is just related content, such as the history of shoe shines, to accompany a shoe polish commercial, then it is just a supportive environment, and not typically counted as a commercial message.


Wednesday, May 20, 1998 #1599
Dear Media Guru, I am developing and producing a short radio feature for barter syndication. On what basis do syndicators typically set their ad rates? I realize that the rates may be highly negotiable but are there any common formulas (based on CPM, cpp or some other data) used by syndicators to arrive at an "asking price"? Also, can you recommend any resources helpful in developing and marketing syndicated radio programming? Thanks for your help.

The Media Guru Answers(Wednesday, May 20, 1998 ):
Some of the issues in syndicated programming pricing are:
  • CPM or cpp better than spot radio pricing for similar audience size
  • Possible premium for an attractive program environment.
  • %U.S. coverage

There are numerous radio syndication companies, handling everything from Rush Limbaugh to obscure musical formats. One good way to solicit response from -- or tips about -- the right resource would be to post a message about your program to the "Radio Media" discussion list. Send your request to join the discussion to RADIO-MEDIA@adsong.com


Thursday, April 30, 1998 #1578
what is the mathematical relationship between the cpp and cpm, is there any formula linking this two concepts?

The Media Guru Answers(Thursday, April 30, 1998 ):
cpp (Cost Per rating Point) is the cost of a number of media impressions equalling one per cent of a given population group (the specified "target"), as in Women 18-49 cpp.

CPM is the cost of 1000 target media impressions.

Therefore, the mathematical relationship depends on the number of thousands of people who equal one percent the target group.

For example, suppose there are one million women 18-49 in a market, and a radio spot has an audience of 20,000 women 18-49 at a price of $50.

The rating points generated by the spot are 2.0

(20,000 divided by 1,000,000).

The cpp is $25

($50 divided by 2.0)

The CPM is $2.50

($50 divided by 20[thousands])

Since cpp is the cost of impressions equal to 1% of the population, the CPM to cpp relationship is:

cpp divided by 1% of the population in thousands = CPM

In this case, $25 cpp divided by 10 [thousand]= $2.50 CPM

or

CPM times 1% of the population in thousands = cpp

While this works perfectly for national media, it can be tricky in local media unless geography is tightly defined. I.e. a broadcast CPM is usually defined as being on a Metro Area or DMA basis. CPM though, is often based on all impressions generated, even if outside the basic geography. Common geographic population definitions are essential to the accuracy of the formulas.


Tuesday, December 09, 1997 #1472
Do you know who puts out the "SQUAD" report? Also, where can I find out more information on where and how the results of this report are collected. This is a report on Broadcast cpp analysis by daypart/market.

The Media Guru Answers(Tuesday, December 09, 1997 ):
SQAD (no "u") is published by Spot Quotations and Data Service of Tarrytown, NY. They are happy to provide methodological information. See selected SQAD data in AMIC's "Rates, Dates and Data area.


Thursday, October 23, 1997 #1440
Hi Guru- 1) Briefly, what does cpp stand for? 2) Have you seen any good sources that compare the costs (CPM) of various media (billboard, banners, radio, newspaper etc)?

The Media Guru Answers(Thursday, October 23, 1997 ):
cpp is cost per point. "Point" refers to Rating Points, the sum of the ratings of the ads in a schedule. So cost per point is schedule cost divided by number of rating points.

cpp is also used in describing the average cost of media or programs.

MediaWeek publishes a handy guide to media costs. SQAD publishes guides to various broadcast media.


Friday, March 21, 1997 #1009
What should be the minimum demo rating for a prime television spot on any schedule?

The Media Guru Answers(Friday, March 21, 1997 ):
The Guru doesn't judge "prime" strictly by rating. Is the Prime daypart in your plan because of how prime builds reach, because of the program types available, or just because larger ratings "feel good."

Prime cumes well, not just because of larger ratings but also because of the larger pool of potential viewers available during prime hours and because the once a week programs tend to have better audience turn-over. This is one reason why the prime hours on independent stations are often categorized as fringe, rather than prime

If however, you need to focus on ratings for ratings' sake a sensible rule of thumb would be to use the average of the next best daypart as the minimum rating for prime.

If rating size is your only standard, why pay premium, prime cpp for programs rated lower than more efficient ones in other dayparts?


Sunday, March 02, 1997 #1028
List the top 20 TV ADI's by population

The Media Guru Answers(Monday, March 03, 1997 ):
Take a look in the "Cost per TV rating Point area of AMIC's "Rates, Datesand Data" section.

cpp is listed by DMA rank order. By the way, "ADI" is dead as amedia term. Since ARBitron ceased measuring local TV, DMA is theonly viewership based, TV market definition in current use.


Tuesday, February 25, 1997 #1036
We are planning a radio schedule with a demo of Adults55+. We have no research that gives us a cpp for thatdemo. If we took a Sparc cpp for Adults 25-54 and increased it, what would you recommend the increaseshould be? Thanks.

The Media Guru Answers(Wednesday, February 26, 1997 ):
Determine the rating for 55+ and its index to the 25-54 rating.

Divide the 25-54 cpp by this index

(remember to treat the index as a decimal equivalent)

E.G. if 25-54 cpp = $100
and 25-54 rating = 2.0
and 55+ rating = 2.2
the index = 2.2 / 2.0 = 110 (or 1.10 in decimal form)

55+ cpp = $100 / 110 = $90.91

Since SPARC is market average, stations bought will effect accuracy. The stations making up a typical 25-54 buy maybe quite different than the ones you would buy for 55+.

Targeting should allow you to do better.


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.


Tuesday, June 25, 1996 #1191
In ranking radio station, should you rank thenagainst average quarter house rating or is it better torank against cume and why? Thank Media Guru

The Media Guru Answers(Tuesday, June 25, 1996 ):
Rankings are usually done against AQH ("Average Quarter Hour" -- there are no household measurements in radio ratings)

One reason is that these numbers have a correspondence with cost per point and cpm, which are other typical evaluation standards for radio buying.

Depneding on your overall goal rankings on cume may or may not be useful. If a particular station is trying to convince you to use cume rankings, it -- no doubt -- fares better on cume than rating.

However, if you are buying to a reach goal, buying stations in order of cume or cume/efficiency may be the best way to acheive your reach goal for the least dollars, rather than by amassing GRP in order of cost per point. This is especiallytrue if you are planning to buy many spots on a station. In that case, the cume better reflects your reach potential. Conversely,if you are buying very few spots on a station, the AQH will betterreflect the situation.


Wednesday, May 01, 1996 #1230
Are there any software packages that allow you to collectmedia data over the internet? Also, what are the latestprograms dealing with media planning? I work with a small agencyin New York that places local radio, newspaper and televisionin a few markets in the midwest and we are looking forways to go take our media planning into the digital age.

The Media Guru Answers(Thursday, May 02, 1996 ):
Telmar, (AMIC's parent corporation) is in the business of providingits clients with leading edge technology for internet, dial-up and local access to media software as well as to the hundreds of syndicated databases available for clients with legal access.

Telmar has programs for print, television,cable, radio, and newspaper. The All Media Planner allows the user to do all media advertising media planning, including reach/frequency analysis, media mix, optimization, budget allocation, flowcharting, graphics. Also note that there is free cost per point information provided by SQAD on AMIC.

Contact sales@telmar.com for further information about Telmar's services.


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.


Thursday, January 11, 1996 #1789
What is the average cpp in the Atlanta Metro and ADI for radio and TV? Please break this out by quarter.

The Media Guru Answers(Friday, February 02, 1996 ):
Your ultimate source will request a demographic specification for the cpp. Spot Quotations and Data, Inc. (SQAD) provides this sort of information. Contact SQAD at (914) 524-7600 or SQAD@ix.netcom.com


Friday, August 25, 1995 #1846
How can I obtain historic, actual radio costs for A 18-49, over the last ten years? Top twenty ADI's?

The Media Guru Answers(Friday, August 25, 1995 ):
There are a few approaches. Ad trade publications publish cpp/cpm trends annually. Libraries would have back copies. General media cost guides like AdWeek's Marketers Guide to Media which predict costs can be used retrospectively to examine cost trends.

Specific cost guide sources such as SQAD (Spot Quotations and Data) which closely follow marketplace costs (but don't post analyze) can look back at cost history for a probably nominal charge.



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