Trash & Treasures of Duplication - Nielsen AudioTrash & Treasures of Duplication Cross-Media Synergy...

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' 2002 Arbitron Inc. By R. McConochie, Ph.D. Arbitron Inc. Beth Uyenco Optimum Media June 2002 Trash & Treasures of Duplication Cross-Media Synergy Prospects from Arbitrons Portable People Meters (PPM) 2 ' 2002 Arbitron Inc. Insights into Targets Cross-Media Usage Understanding targets uses of multiple media » Including correction of random duplication estimation Enabling more intelligent media campaigns, over time, across media Fine-tuning principles of more effective, efficient planning

Transcript of Trash & Treasures of Duplication - Nielsen AudioTrash & Treasures of Duplication Cross-Media Synergy...

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© 2002 Arbitron Inc.

By

R. McConochie, Ph.D.Arbitron Inc.

Beth UyencoOptimum Media

June 2002

Trash & Treasuresof DuplicationCross-Media Synergy Prospects from Arbitron�s Portable People Meters (PPM)

2 © 2002 Arbitron Inc.

Insights into Target�s Cross-Media Usage

� Understanding target�s uses of multiple media » Including correction of random duplication estimation

� Enabling more intelligent media campaigns, over time, across media

� Fine-tuning principles of more effective, efficient planning

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3 © 2002 Arbitron Inc.

The First PPM Cross-Media Investigation, 2001

� PPM�s �real� cross-media data

� Show variations in target duplication by time period

4 © 2002 Arbitron Inc.

PPM 2001 Results Show Cross-Media Duplication Highest in Evening

0 20 40 60 80 100

M-F 19:00-24:00

M-F 8:00-10:00

M-F 6:00-8:00

Cume Percent

Persons 18+ Aggregated Radio & TV Cumes Among Encoded Media, PPM Wilmington Panel, 2001

TV Only

Both TV & Radio

Radio Only

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5 © 2002 Arbitron Inc.

Narrower Targets Show Different Patterns of Duplication

� Younger target shows more radio-TV duplication

� Older target shows higher exclusive-TV cume

6 © 2002 Arbitron Inc.

M-F 19:00-24:00

M-F 8:00-10:00

M-F 6:00-8:00

2001 Results Point to Cross-Media Target-Demo Variations

0 20 40 60 80 100

18-34

35+

18-34

35+

18-34

35+

Cume Percent

Persons 18+ Aggregated Radio & TV Cumes Among Encoded Media, PPM Wilmington Panel, 2001

TV Only

Both TV & Radio

Radio Only

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7 © 2002 Arbitron Inc.

PPM�s �Measured� Reach May Differ from What Random Duplication Estimates� Random duplication is current convention

for estimating cross-media plans� net reach

( A ( A ++ B) B) �� ƒƒ (A (A XX B)B)

� Actual data show duplication is systematic, not random»Varies by time period

»Varies by demographic target

8 © 2002 Arbitron Inc.

0 20 40 60 80 100

M-F 6:00-8:00

M-F 8:00-10:00

M-F 19:00-24:00

Cume Percent

Total Net Unduplicated Reach: PPM vs. Random Duplication Among P18+Persons 18+ Aggregated Radio & TV Cumes Among Encoded Media, PPM Wilmington Panel, 2001

PPM

Random

Random close enough for evening hours but off in other time periods.

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9 © 2002 Arbitron Inc.

0 20 40 60 80 100

M-F 6:00-8:00

M-F 8:00-10:00

M-F 19:00-24:00

Cume Percent

Total Net Unduplicated Reach: PPM vs. Random Duplication Among P35+Persons 35+ Aggregated Radio & TV Cumes Among Encoded Media, PPM Wilmington Panel, 2001

PPM

Random

Random underestimates reach in 2 of 3 time periods.

10 © 2002 Arbitron Inc.

PPM�s �Real� Reach May Correct Random-Duplication Estimation

� In contrast to random duplication�»PPM�s total reach differs most from random duplication between 8:00 and 10:00

»PPM�s reach exceeds random for Persons 18+for Persons 35+

»PPM�s reach less than random for Persons 18-34

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11 © 2002 Arbitron Inc.

0 20 40 60 80 100

M-F 6:00-8:00

M-F 8:00-10:00

M-F 19:00-24:00

Cume Percent

Total Net Unduplicated Reach: PPM vs. Random Duplication Among P18-34Persons 18-34 Aggregated Radio & TV Cumes Among Encoded Media, PPM Wilmington Panel, 2001

PPM

Random

Random overestimates reach in all time periods.

12 © 2002 Arbitron Inc.

PPM Can Enable More Intelligent Media Campaign

� Understanding how to complement a million-dollar �Super Bowl� communications centerpiece

� How to drive people to the Super Bowl, via which media

� How to reinforce the Super Bowl centerpiece after the event

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13 © 2002 Arbitron Inc.

Super Bowl: Most Expensive Show of the Year and One of the Top-Rated in Any Given Year

0%

10%

20%

30%

40%

50%

1996 1997 1998 1999 2000 2001 2002$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

Source: Nielsen Media Research

Hou

seho

ld R

atin

gSuper Bowl Trends

Cos

t of a

:30

Ad ($

mill

ions

)

14 © 2002 Arbitron Inc.

Super Bowl

Used with permission from the NFL. ArtVuelo Video

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15 © 2002 Arbitron Inc.

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68

74

65

0 20 40 60 80 100

21:00-22:00

20:00-21:00

19:00-20:00

18:00-19:00

Average Quarter-Hour Reach

Cume Percent

Men 18-49, Sun., Feb. 3, 2002, Philadelphia DMA® PPM Panel

Communication-Campaign Centerpiece: Enormous Super Bowl Reach

Broadcast TV

16 © 2002 Arbitron Inc.* AQH cume duplication summed across individual measured media.

Super Bowl Reach Excludes Most Other Same-Time Media: Minimal Duplication* Men 18-49 Super Bowl Audience, Sun., Feb 3, 2002, Philadelphia DMA PPM Panel

0 20 40 60 80 100

21:00-22:00

20:00-21:00

19:00-20:00

18:00-19:00

Total Cume Percent

Other Broadcast TV

Cable TV

Radio Only

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17 © 2002 Arbitron Inc.

Investigation Design: Tracking Flow over PPM Panel � Promote the centerpiece ad prior to the event

� Reinforce the centerpiece after the event

Advance PromoThurs., Jan. 31

Advance PromoThurs., Jan. 31

Super BowlSun., Feb. 3 Super BowlSun., Feb. 3

Follow-UpWed., Feb. 6Follow-Up

Wed., Feb. 6

18 © 2002 Arbitron Inc.

Super Bowl Audience Duplication Highest in Peak-Media Time Periods

� Men 18-49 viewers of Super Bowl are most reachable in...»Radio during morning-drive time

»Television in prime access and prime time

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19 © 2002 Arbitron Inc.

Reach of Men 18-49 Super Bowl Audience by Other PPM-Measured Media, Jan 31, 2002

0 20 40 60 80 100

21:00-22:00

18:00-19:00

8:00-9:00

Total Cume Percent

Men 18-49 Super Bowl Audience, Philadelphia DMA PPM Panel

* AQH cume duplication summed across individual measured media.

Broadcast TV

Cable TV

Radio

20 © 2002 Arbitron Inc.

Reach of Men 18-49 Super Bowl Audience by Other PPM-Measured Media, Feb 6, 2002Men 18-49 Super Bowl Audience, Philadelphia DMA PPM Panel

0 20 40 60 80 100

21:00-22:00

18:00-19:00

8:00-9:00

Total Cume Percent* AQH cume duplication summed across individual measured media.

Broadcast TV

Cable TV

Radio

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21 © 2002 Arbitron Inc.

Fewer Media Contribute to Super Bowl�s Peak-Time Duplication

� About four radio stations account for about half of Morning Drive duplication

� About two TV channels account for about half of evening Prime-Time duplication

22 © 2002 Arbitron Inc.

8:00-9:00 Radio Reach of Men 18-49 Super Bowl Viewers by Five Key Radio Stations

0 20 40 60 80 100

February 6

January 31

Total Cume Percent

Men 18-49 Super Bowl Audience, 8:00-9:00, Jan. 31 & Feb. 6, 2002,Philadelphia DMA PPM Panel

Top

2nd

3rd

4th

5th

6th to 20th

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23 © 2002 Arbitron Inc.

Men 18-49 Super Bowl Audience, 21:00-22:00, Jan. 31 & Feb. 6, 2002,Philadelphia DMA PPM Panel

21:00-22:00 TV Reach of Men 18-49 Super Bowl Viewers by Three Key TV Stations

0 20 40 60 80 100

February 6

January 31

Total Cume Percent

Top

2nd

3rd

4th to 8th

24 © 2002 Arbitron Inc.

Few Media Also Contribute to the Smaller �Off-Peak� Duplication

� Two to three TV channels account for about half of the 18:00-19:00 duplication

� Four to five radio stations account for about half of the 18:00-19:00 duplication

� But the level of duplication is smaller

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25 © 2002 Arbitron Inc.

Men 18-49 Super Bowl Audience, Jan. 31, 2002,Philadelphia DMA PPM Panel

Thursday, 18:00-19:00 Net Reach of Target by Key TV & Radio Stations

0 20 40 60 80 100

Jan. 31 Radio

Jan. 31 All TV

Total Cume Percent* All TV includes both broadcast and cable.

Top

2nd

3rd

4th

5th

Others

26 © 2002 Arbitron Inc.

Men 18-49 Super Bowl Audience, Feb. 6, 2002,Philadelphia DMA PPM Panel

Wednesday, 18:00-19:00 Net Reach of Target by Key TV & Radio Stations

0 20 40 60 80 100

Feb. 6 Radio

Feb. 6 All TV*

Total Cume Percent* All TV includes both broadcast and cable.

Top

2nd

3rd

4th

5th

Others

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27 © 2002 Arbitron Inc.

Which Is the Best Communication Plan?

� Total reach among target?

� Fewer channels, less complex plan?

� More channels and more complexity?

� Which time period is best?

28 © 2002 Arbitron Inc.

The Most Efficient Plan... � Targeted media with relatively small

overall reach

� During off-peak times

� To build reach within target and minimize excess frequency and nontarget waste

� As follows

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29 © 2002 Arbitron Inc.

0%

20%

40%

60%

80%

100%

0% 20% 40% 60% 80% 100%

Optimal Cost Range

Optimizing PPM-Measured Cross-Media Target Reach & Minimizing Nontarget Waste

% Total Possible Spots/Cost

% T

arge

t Rea

ch (F

req.

= 3

)

30 © 2002 Arbitron Inc.

Most Efficient Media to Complement Super Bowl Centerpiece

� Off-peak media

� FM radio, and AM

� Cable TV, especially targeted cable

� Broadcast TV increases target coverage�but at a high cost

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31 © 2002 Arbitron Inc.

Another Way of Using Duplication Patterns

� For advertisers who find the Super Bowl unaffordable but need to reach the same audience:» Advertise on the other vehicles the Super Bowl

viewers would use: radio drive time and TV early evening and prime time periods

� What can $150,000 deliver a local advertiser?One Spot on Super Bowl Radio Drive + TV Evening

GRPS 36 216

1+ Reach 36 >36

Source: Nielsen TV ratings and Arbitron Radio ratings for Philadelphia, Jan/Feb 2002

32 © 2002 Arbitron Inc.

What It Means for Media Planning:� True reach for radio and TV

campaigns which we can then optimize on the basis of:

»Reach maximization: by vehicle and not just by media form

»Maximize communication effectiveness: delivering message when target is most open to hearing or seeing it

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33 © 2002 Arbitron Inc.

PPM Reports True Reach Across Radio and TV Vehicles

6:006:00

18:0018:00

12:0012:00

24:0024:00

R1R2 R3

R5 R7

TV13

TV5TV3

TV2TV1R4

TV4

TV6 TV7

TV8

TV10TV9

TV12

TV11

TV15

TV14

R6

R8

R13

R9

R14 R15

R12 R11

R10 R16

TV5

34 © 2002 Arbitron Inc.

TV13

TV10

R15

R12

R10

PPM Reports True Reach Across Radio and TV Vehicles

6:006:00

18:0018:00

12:0012:00

24:0024:00

R1R2 R3

R5

TV3

TV1R4

TV4

TV6 TV7

TV8

TV9

TV12

TV11

TV15

TV14

R6

R8

R13

R9

R14

R11

R16

TV5

R7

TV5

TV2

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35 © 2002 Arbitron Inc.

What It Means for Media Buying� Aids negotiations in cross-platform media buys»Multi-station ownership within markets

»Cross-media ownership

Radio and TV

36 © 2002 Arbitron Inc.

Almost Half of All Radio Stations in the Philadelphia Market Are Owned by Companies with Multiple Stations:

Owner Medium StationViacom Radio KYW-AM

Television KYWD (CBS affiliate) WPSG (UPN affiliate)

Clear Channel Radio WDAS-AM WDAS-FM WIOQ-FM WJJZ-FM

Greater Media Radio WMGK-FM WMMR-FM WMWX-FM WPEN-AM

Beasley Radio WPTP-FM WTMR-AM WWDB-FM WXTU-FM

Infinity Radio WIP-AM WOGL-FM WPHT-AM WYSP-FM

Salem Radio WFIL-AM WZZD-AM

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37 © 2002 Arbitron Inc.

PPM Contributions� Understanding target�s uses of

multiple media » Including correction of random duplication estimation

� Enabling more intelligent media campaigns, over time, across media

� Fine-tuning principles of more effective, efficient planning