III. Secondary Research

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III. Secondary Research

• Audience Measurement
• ADV 3501 Advertising Research
• Spring 04

2
Housekeeping

• To read
• To do
• Turn in first part of final project (2/10)
• First proposal (handout next Tues.) 2/19
• Handouts
• Evaluation form
• Guide
• Practice Drill

3
Revised schedule (Next 5 classes)

• 2/3 Review, meetings, catch up and
• Quiz Please bring handouts.
• 2/5 EXAM 1
• 2/10 Intro to qualitative research (In-class
  activity)
• 2/12, 17 Focus group

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Audience measurement

• One of the most important types of secondary
  information
• In order to use correctly audience measurement
  information you need to understand
• What are the types available?
• How these data is collected?
• How this information is interpreted and applied

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Television

• Size of the audience
• A rating is a percent of the universe that is
  being measured, most commonly discussed as a
  percent of all television households.
• A share is the percent of households or persons
  using television at the time the program is
  airing and who are watching a particular program.
  Shares can be useful as a gauge of competitive
  standing (Nielsen 2004)

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Share vs. Rating example
TV is off
Sponge Bob
The Bachelor
Sponge Bob
Share Rating
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How TV ratings are collected

• A.C. Nielsen
• Participants are selected using a Multistage
  stratified probability sample.
• Local Diary and meters
• National People meters
• Diary
• 1 million homes each year
• Participants keep track of television viewing for
  one week, recording their TV viewing activity in
  a diary.
• This is done for all 210 television markets in
  the United States in November, February, May and
  July (Sweeps)

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How TV ratings are collected

• People meters
• 5,000 television households
• Electronic meters are attached to every TV set,
  VCR, cable converter box, satellite dish or other
  video equipment in the home.
• The meters continually record all set tuning.
• Each member of the household press a pre-assigned
  button on the People Meter which is also present.
  
• Meters
• Additional 20,000 homes gather exclusively the
  set-tuning information

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Nielsen Reports

• Simple reports
• http//www.nielsenmedia.com/ratings/broadcast_prog
  rams.html
• Nielsens Report on Television

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Radio audience measurement

• Arbitron
• Radios All Dimension Audience Research
• Telephone recall
• Diaries

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Key measures

• MET AQH PER (00) Estimated number of people (in
  hundreds) in the METropolitan area listening to a
  station for at least five minutes during an
  Average Quarter Hour
• MET AQH RATING Ratings in a metropolitan area in
  an average quarter hour
• MET AQH RATING Share in a metropolitan area in
  an average quarter hour

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Key measures

• MET CUME PER (00) Number of different people
  (hundreds) in the metropolitan area listening to
  a station for at least five minutes.
• MET CUME RATING Ratings.

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Example

• WBUR 90.9 FM
• ARBITRON WINTER 2001/2002
• BOSTON MSA, Adults 25-54
• Morning drive-time (M-F, 5am - 10am)
• AQH Persons 27,600
• AQH Rating 1.3
• AQH Share 6.7
• Cume 234,500
• Cume Rating 11.3

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Magazine audience measurement

• Two ways to measure the audience
• Target audience and circulation (average number
  of copies of the publication that are in
  distribution)
• Standard Rate and Data Service (SRDS)
• This information is obtained from audited (Audit
  Bureau of Circulation) or non-audited
• Target audience incidence and concentration
• Readership (vs. circulation)
• Simmons and Mediamark

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Others

• Newspapers ABC
• Outdoor Traffic Audit Bureau for Media
  Measurement (GPS data, number of potential
  exposures)

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WWW

• The original measure Hits
• How
• Idiots
• Track
• Success
• Nielsen//Net-Ratings NetView

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III. Secondary Research

• Advertising Budget and Competitive Strategies
• ADV 3501 Advertising Research
• Spring 04

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Media Expenditures

• LNA/Mediawatch
• AKA Ad Summary
• Estimates of brand, company, and category
  advertising expenditures.
• Uses
• Budgeting
• Marketplace dynamics
• Competitive media strategies

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Budgeting (Objective and Task Method)

• Two ways to do this
• Response to competitive spending
• Compare the total expenditures by company
• Share of market/share of voice

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Marketplace dynamics

• Steps for data analysis
• Transfer LNA data
• Define and record subcategories (pricing, traits,
  benefits)
• Create summaries (Growth trends, category,
  subcategories subtotals)
• Create multibrand summary (Parents and brands)

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Competitive media strategies

• Answers two basic questions
• Which advertising media account for the greatest
  share of expenditures?
• Is there any consistency of media strategies
  among advertisers and types of products?

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Process of competitive media strategies analysis

• Examine the trend in overall category media
  expenditures
• Determine consistency between category and
  subcategory spending trends
• Examine the pattern of media allocation for
  brands and subcategories

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III. Secondary Research

• How to interpret SMRB tables
• ADV 3501 Advertising Research
• Spring 04

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Concept behind SMRB tables
People who drink beer
Age
Base
18-24
25-34
35-44
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People who drink beer
Gender
Base
Females
Males
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People who drink beer
People who drink Coors
Age
Base
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A closer look at SMRB tables

• Column A Absolute number of users by category
• 10,072,000 female homemakers aged 25-34 use
  frozen potatoes products
• Column B Demographic profile by consumption
  segment
• 25.2 of all female homemakers who use frozen
  potato products are aged 25-34.
• 10,072/39,9600.252

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A closer look at SMRB tables

• Column C Percent of users within the specific
  classification (across)
• 59.9 of all female homemakers aged 25-34 use
  frozen potato products
• 10,072/16,8200.5988
• Column D Index of users relative to the whole
  category segment
• Female homemakers aged 25-34 are 12 more likely
  to use frozen potato products.
• 59.9/53.7 1.115x100 111.5

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What does the data tells us

• Understand the characteristics of a product
  category
• Better decisions are made
• Use CDs and books to recalibrate the data

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SMRB as a tool for media planning

• The tables also tabulate reported magazine
  readership by category and product usage.
• Allow us to determine product and brand related
  behavior.

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In-class exercise(Page 5 handout)

• What percent of medium users of frozen potato
  products is employed full time?
• Which county size has the greatest propensity to
  use frozen potato products?
• What percent of households with children between
  12 and 17 years report using frozen potato
  products?
• If you had to create a target profile for female
  homemakers who are medium users of your new
  product, Chilly Spuds, what would the initial
  profile be?