Measuring Audience IV: Advanced Issues JMC 222 Media Planning Department of Media & Communication Hanyang University Estimating Reach n+ Reach n+ Media planner needs to know not only a schedule’s overall reach and GRPs (= reach x average frequency), but also cumulative reach per # of exposure (= reach n+) Reach 1+: % of audience exposed to the media at least once Reach 3+: % of audience exposed to the media at least three rimes Estimating reach n+ allows to see how reach builds up per units of GRPs – understanding the patterns is important for making strategic decisions Estimating Reach n+ Reach n+ (cont’d) Growth patterns of reach n+ by GRPs (Network TV) Upper limit Reach 1+ shows a concave pattern, which changes to a Sshape as frequency increases Estimating Reach n+ Reach n+ (cont’d) Growth patterns of reach n+ by GRPs (Cable TV) Upper limit Cable TV’s reach grows slower than network TV’s, and has a lower upper limit due to the number of channels Estimating Reach n+ Reach n+ (cont’d) Growth rate of reach by media Reach Network TV Cable TV Print Media Radio 300 GRPs Knowing how much reach is possible per some units of GRPs is needed Estimating Reach n+ Reach n+ (cont’d) Reach estimates/GRPs by media GRPs Reach Frequency Network TV 100 300 25-50 55-70 2.0-4.0 4.3-5.5 Cable TV 100 300 15-40 40-55 2.5-6.7 5.5-7.5 Radio 100 300 3-10 17-20 5.0-16.7 11.5-21.4 Internet 100 300 10-50 65-80 2.0-10.0 3.8-4.6 Print Media 100 300 10-60 30-70 1.7-5.0 4.3-5.0 Estimating Reach n+ Two ways of estimating reach n+ Using real data is desirable, but could be done only after enough real data are collected Could be misleading if the data are insufficient and/or flawed Fitting curves to available data Finding a mathematical model with the smallest errors for the data given Estimation using probability distributions Media exposures are viewed as probability-related phenomena Estimating Reach n+ Probability models Binomial probability distribution It is assumed that events are probabilistically independent of one another (i.e., Event A’s chance won’t affect B’s chance, or vice versa) What would be the chance that an event X occurs y times in n trials? n y n− y P( y) = p q y P(y): Probability of an event in a repeated trial p: Probability that the event would occur q: Probability that the event would not occur Estimating Reach n+ Probability models (cont’d) Binomial probability distribution (cont’d) Ex) Vehicle X’s rating = 16.67% Ad inserts = 4 times What is the probability that the ad is seen 2 times? P(4E2) = 4C2 x (.1667)2 x (.8333)2 = [4!/(2!)(2!)] x .0278 x .6944 = 6 x .0193 = .1158 = 11.58% Estimating Reach n+ Probability models (cont’d) Binomial probability distribution (cont’d) Calculating the probability of ad exposures is the same as calculating the probability of flipping a coin or throwing a dice Binomial distribution has two problems: 1) BD uses an average monthly rating, and does not consider the fact that ratings constantly change 2) BD ignores individual variation in the probability of exposures Estimating Reach n+ Probability models (cont’d) Sainsbury Formula How to estimate the combined reach of vehicles A and B? Rc = R(A) + R(B) – R(A&B) = R(A) + R(B) – R(A) x R(B) = 1- [1-R(A)] x [1-R(B)] Net reach of n vehicles (R1, R2,…, Rn) = 1.0 – [(1.0 – R1)(1.0 – R2)(1.0 – R3) … (1.0 – Rn)] Estimating Reach n+ Probability models (cont’d) Sainsbury Formula (cont’d) Net reach of 3 vehicles Program Rating A 10 B 15 C 20 Reach = 1.0 – [(1.0-.10)x(1.0-.15)x(1.0-.20)] = 1.0 - .612 = .388 = 38.8% GRPs = 10 + 15 + 20 = 45 Frequency = 45/38.8 = 1.2 Estimating Reach n+ Probability models (cont’d) Sainsbury Formula (cont’d) An application of the “binomial probability distribution model.” Assumption: Media duplication is a random process (?!) Advantage: Easy to use, allows rough comparisons of different schedules. Disadvantage: Tends to overestimate reach (thus underestimate frequency). Solution: Deduct 10% of estimated reach. Estimating Reach n+ Probability models (cont’d) Beta binomial distribution (BBD) It is assumed that individuals are not homogeneous in terms of exposure probability, which follows a continuous distribution P(x): Probability of an event in a repeated trial T x T −x P(x) = p (1− p) x T: the total # of insertions in the schedule p: the composite vehicle audiences Estimating Reach n+ Probability models (cont’d) Beta binomial distribution (BBD) (cont’d) Magazines A B C Total %Audience 13.85 9.80 11.70 35.35 Step 1: Calculate composite audience (.1385 x 1 + .0980 x 1 + .1170 x 1)/3 = .1180 Insertion 1 1 1 3 Estimating Reach n+ Probability models Beta binomial distribution (BBD) (cont’d) 3 p ( x = 0 ) = ∗ . 1180 0 0 ∗ (1 − . 1180 ) 3 − 0 = . 6862 3 p ( x = 1) = ∗ . 1180 1 ∗ (1 − . 1180 ) 3 − 1 = . 2754 1 3 p ( x = 2 ) = ∗ . 1180 2 ∗ (1 − . 1180 ) 3 − 2 = . 0368 2 3 p ( x = 3 ) = ∗ . 1180 3 3 ∗ (1 − . 1180 ) 3 − 3 = . 016 Estimating Reach n+ Probability models (cont’d) Other estimation models Conditional beta binomial distribution (CBD) Sequential aggregation model Dirichlet Multinomial distribution model Canonical expansion model Hyper-beta distribution model Every probability model is based on assumptions, not on universal truths The more accurate, the better Cannot answer the question of “why?” Any question?