GRP (Gross Rating Points, GRP) is one of the most popular media planning indicators that allows you to evaluate the layout of the message in several media. GRP- marketing indicator, reflecting the scale of advertising and information impact. It is considered a method of summing up the ratings of the entire advertising campaign across all media.

GRP shows, how many times an advertising message catches the eye of people during the period of an advertising campaign and means the number of rating points scored for a certain time period by audience. The base metric to measure the power of a campaign when determining its cost and comparing it to others.

To calculate GRP A marketing campaign needs to know all the ratings scored by individual ad outlets. This rating is the percentage of the audience that saw the broadcast event in relation to the entire audience that could see it. Wherein, never do not add up GRP's from different target audiences.

GRP calculations are made during media planning of advertising campaigns, including when scheduling advertising on television. All major TV calculations are based on GRP forecast ratings. After the broadcast, the predicted GPR indicators are checked against the real ones.

Postbuying– reconciliation of the forecast ratings with the actual ones after the end of the placement. In this case, if the total rating turned out to be lower than the declared one by more than 15%, then the TV channels provide advertisers with broadcasts to show their previously paid advertising at the same time in order to reach the total GRP declared by the advertising agency.

Example of GRP calculation.

• on the first day of the marketing and advertising campaign, the advertising message was seen by 30% of the audience, then the rating is 30;
• on the second day, 40% of the audience saw an advertising message - the rating is 40;
• on the third day - 30%, rating - 30.

After three days advertising company, the gross rating (GRP), will be equal to 30+40+40=110. When referring to the GRP value, the percent sign is usually omitted.
Number of impressions: 22299

Outdoor advertising, unlike other distribution channels, requires specific criteria to evaluate its effectiveness. Until recently on Russian market there was no clearly defined program for this. Some still decided to invest in outdoor advertising, but many were “afraid to spend money on who knows what” .

After it became clear that the success of promotion in the market depends on the location of the advertising message, preference was no longer given only to those streets that the customer or the advertiser himself travels. Accordingly, the main question for those involved in the placement and evaluation of the effectiveness of outdoor advertising began to sound like this: “who will see this advertisement?”

Therefore, the target audience is recognized as all people who pass or pass by it. And the first indicator, which to some extent can reflect the effectiveness of outdoor advertising, is the potential audience. In other words, this is "the number of potential advertising contacts (the number of people who have the opportunity to see this outdoor advertising per unit of time - day, week or month)" . Measurements take into account all the main components of the potential audience, namely:

personal transport;

· public transport;

Pedestrians.

It should be noted that with the help of special coefficients, indicators for the coefficients of motor transport and public transport are reduced to the number of people.

Consider an example of a study aimed at studying the effectiveness of outdoor advertising. This study was carried out in the UK in the 1980s by OSCAR New Blend. The goal was to obtain the following indicators:

1) brand awareness and recognition;

2) frequency of brand purchases;

3) trust in relation to the brand (loyalty);

The result of such studies can be the identification of how a particular advertisement influenced the promotion of a product as a whole. As a result, a database is formed, which allows in the future to make predictions about the effectiveness of advertising a particular product.

In St. Petersburg, GALLUP SPb used a similar methodology in 1996 to evaluate the effectiveness of outdoor beer advertising. A survey of respondents was conducted at the locations of the posters and at the nearest gas stations, the sample was 400 people (at 20 randomly selected points). The main conclusions that were obtained during the campaign: the brand's popularity has grown, the image of the advertised product has improved, and 19% of respondents were able to remember the poster.

The second indicator that we will consider is the size of the audience coverage (OTS - “opportunity to see”) - the size of the part of the audience that has a practical opportunity to see this advertisement. Below are a number of characteristics for evaluating this criterion:

· angle of rotation;

transport position;

The distance to the traffic light

the width of the carriageway;

visibility distance;

Competing designs

vision obstructions.

However, OTS does not take into account the fact that a person, moving in the usual way, may see the same advertisement several times during the same day.

In international practice, there is the following division: OTS1 is the potential audience, OTS2 is the real audience of advertising.

The OSCAR OTS measurement methodology for outdoor advertising assumes:

· compiling a catalog of outdoor advertising objects with their classification according to the criteria of place, size, network, lighting, the presence of other objects within sight;

counting the number of people passing and passing by each object;

· calculation of "visibility index" (from 0 to 1), by creating a mathematical model.

Among the methods for determining flows, the following are distinguished:

counting the number of people passing by and passing by (manual or video recording);

regular collection of information about people's daily travels;

computer modeling (method of neural networks).

However, the methods for calculating OTS2 (Real Viewability) are different from the methods for calculating OTS1 :

survey (people are interviewed at the places where posters are placed);

fixation of attention with eye cameras (glasses that make it possible to determine the focus of attention);

· showing the target group a film about a walk along the street with outdoor advertising objects (Live-Plakat-Test method, carried out in Germany).

“As a result, VAI is calculated - Visibility Adjusted Impact - the coefficient of perception for each type of outdoor advertising. Multiplying this coefficient by OTS1 results in an undistorted OTS2 - the real number of contacts over a period of time.

Next comes the definition of the structure of the audience, because. to conduct a correct comparative analysis, it is necessary to know the structure of the audience of a particular advertising object. "A classic example is the Morgenstern Audience Structure Studies, a series of studies conducted in France in 1983-1991." Let's take a closer look at this study.

First, it should be noted that the sample was more than 100 thousand people in 58 regions of the country. The questionnaire was devoted to how the respondents moved during the week before the day of the interview. "This study provided data on the reach and frequency of viewing of outdoor advertising by target groups." As a result of conducting such a survey, one can obtain data on the potential audience, "which will be affected by the message placed on the advertising structure."

A very important indicator of media planning is the Gross Rating Point (GRP). takes into account the percentage of the value of OTS (effective audience) to the total market size (i.e. the number of able-bodied population of the city aged 18 years and older) . Thus, GRP is the base value for evaluating the audience of one advertising surface, the larger this value, the more effective the URL outdoor advertising is considered: . In turn, the amount of GRP advertising surfaces characterizes the volume of the entire advertising campaign. But at the same time, it is obvious that in the case of using outdoor advertising, there are features that are not inherent, for example, in the television market. The main reason is that depending on the market (with high and low degree of involvement), firstly, the frequency of changing advertising messages changes, and secondly, the number of competitors is not comparable. If we talk about advertising in the banking services market, then advertising here does not change as often as, for example, in the coffee market, because the offer of services remains the same for a long time, the same applies to the number of competitors.

It is quite clear that outdoor advertising is not the subject of increased attention of passers-by on the street (if it does not stand out from the general mass), people are much more interested in the flow of cars, other passers-by or the route along which they move. However, the same can be said about television and press advertising, because the prime time message is not a guarantee of increased attention of the audience: we know very well that during the commercial break on television, few people stay on the same program or simply do not goes "about his own business", and the page in the newspaper with an advertisement is easy to flip through. However, the value of traffic data collected to assess the effectiveness of advertising placed on the streets of the city is that, "unlike the audience of the press and the air, they are relatively stable, subject only to seasonal fluctuations and can be used repeatedly to calculate the GRP of various advertising campaigns" .

The main problems that arise when evaluating the effectiveness of outdoor advertising, and possible methods for their solution are given in Table 1.

Table 1. Problems of evaluating the effectiveness of outdoor advertising and methods for their solution.

Problem	Solution method
1. The need for knowledge about the intensity of the traffic flow, i.e. how many and what kind of people can walk and/or drive past the advertising installation.	The solution is to collect information about the volume and structure of the transport and passenger flows of the city. Commonly used methods are: counting-registration; collection of information on movements using survey methods (diary methods, interviews).
2. The need to know what percentage of passers-by is likely to pay attention to an advertising installation	It is solved by interrogation and/or analysis of the dependence of various technical parameters of a particular installation and the level of memorability. The most commonly used characteristics: distance from the place of probable viewing, installation angle, Deviation from line of sight possible interference, installation height, exposure time.

Let's give an example of OTS calculation.

“For pedestrians, the “basic set of features” consists of the following features:

installation angle 15 degrees,

possible duration of visual contact 10 seconds,

distance from the viewer 7 meters,

No visual obstructions.

A billboard with these characteristics will provide advertising contact with 10% of pedestrians. For the Shield installation angle of 45 degrees to the stream - the coefficient is 1.17. The possible duration of visual contact is 15 seconds, the coefficient is 1.15. Removal from the stream - 13 meters - 0.89. There are other visual stimuli. Coefficient - 0.85 Complexity of the road situation (individual parameter) - coefficient 1.3 (for example).

In this case, the "number of viewers who remembered" for this billboard would be 0.13, i.e. .

Therefore, 13% of viewers in a given stream (pedestrians) will be able to remember the image on the billboard.”

One beautiful day

Switching to outdoor advertising sales under GRP makes it possible to make the relationship between operators and customers more transparent. But until customers begin to carefully count money, and operators do not agree on common standards of work, such changes are postponed for an indefinite future.

The fate of outdoor advertising in our country was very difficult. It is no coincidence that to illustrate the dramatic nature of her relationship with the advertiser, the leading outdoor*-operator** News Outdoor Russia (NOR) chose excerpts from the movie Pretty Woman. The outdoor advertisement in the NOR film was introduced as Julia Roberts and the advertiser as Richard Gere.

“For many years, customers bought TV air according to ratings, and outdoor advertising honestly worked on the street. Clients bought boards and city-formats, meters and surfaces. But one fine day, everything changed,” NOR began his speech at the industry conference “Effective Outdoor Advertising” at the end of last year with such a statement.

The main topic of the conference was the transition to the outdoor advertising sales system according to GRP. NOR has proposed a methodology that allows the use of GRP outdoors, and since December 2007 began to offer such sales to Moscow customers. The authors of the system - NOR, Mediaedge:cia agency and the research company "ESPAR-Analytic" - suggested that the system, which has long proven itself on television, should become a natural stage in the evolution of the outdoor advertising industry.

The results of the first point-to-point campaign for Bourjois were very encouraging, and advertising analysts began to predict that GRP would become the new currency of outdoor advertising. However, for a number of reasons, the most important of which is the fragmentation of industry representatives, such changes will not happen soon and will definitely not fit in one day.

To a common denominator

Client : Efficiency ... And how do you evaluate it?

: Believe me.

Client : Well, no. I'm not used to just believing. I pay money, so please give me reporting, numbers, number of contacts.

: Number of contacts? Are you sure you want to know these numbers?

The mechanism of the GRP sales system, as the media director of the Mediaedge:cia agency says Alexey Kulakov, is borrowed from television practice, where this system has been used for a long time. “We tried to apply the principles of television advertising pricing for outdoor advertising (in particular, we divided the city into zones with different rating indicators, similar to prime time on TV), which were included in the program in the form of discounts and mark-up coefficients,” says Alexey Kulakov.

Application new system sales is designed to solve two important problems. The first of these is the creation of a transparent pricing mechanism. “An advertiser needs an effective system for evaluating outdoor advertising placement,” comments the marketing director of the St. Petersburg department store Miller Center Alexey Aksenov. “It is important to get a certain coefficient that would unify the measurements and make it possible to buy contacts, not addresses.”

It is important that the use of a single currency makes it possible to eliminate the subjective assessments of advertising media. “Earlier, each of the operators could give their arguments in favor of the fact that their shield is better. And GRP acts as a single meter that minimizes the human factor, ”explains fists.

Like adds CEO"ESPAR-Analyst" Andrey Berezkin, "an advertiser is much more understandable language, expressing the purchase in terms of the audience, rather than in terms of" 250 sides 3x6 "".

Therefore, thanks to GRP, the process of communication between the operator and the client is automated. “When receiving an assessment by rating points, the client often does not require detailed description, photos and coordinates the program very quickly,” says the general director of the advertising agency BV Media in St. Petersburg Oleg Rodionov.

The second task that was set before the developers of the new sales system was to bring all the main communication channels to unified system measurements to optimize the media planning process. “Obtaining comparable information on the size of the audience of advertising messages as in outdoor advertising, as well as in other media, allows the client to effectively allocate advertising budgets, ”says the Deputy Director of the NOR Marketing Department Anna Krasilshchikova.

The operator gets more flexible inventory management. “This system will allow operators to sell less popular surfaces (located off the main highways, in residential areas), since they are included in the overall program with a certain GRP,” notes the director of the department marketing communications MTS Russia Evgenia Churbanova.

Relations between agencies and advertisers are also facilitated. “The new system opens up opportunities to improve the level of service,” I am sure Anna Krasilshchikova. “Within a given budget and a certain GRP campaign, the agency can offer the client various program options, while giving a clear rationale for what exactly the client pays for in a particular case.”

Why happy GRP?

In fact, attempts to bring more objectivity to the outdoor advertising sector have been made for a long time. According to Oleg Rodionov, BV Media first started offering GRP evaluation of outdoor advertising about ten years ago. “However, at that time, our innovation was not in demand, and even by progressive Western clients,” says Rodionov. - Then everyone worked the old fashioned way, using the visual evaluations of advertising media. The advertising market itself was just in its infancy, although new technologies were well known among the leaders, but they were not widely used.

Later, the use of the rating system became more popular, but the GRP was initially used only as a guideline. This allowed the advertiser, in particular, to compare the cost of billboards from different operators. “If for some operator a shield with a similar rating cost more than a shield for NOR, this was a reason to negotiate a price reduction,” the marketing and advertising director of a chain of stores gives an example. Child's world» Ashot Harutyunyan.

In addition, rating indicators were convenient for planning advertising campaigns in agencies. “The network agency works with a number of operators, and it may stipulate that GRP must be specified in order to include our surfaces in the general targeted program,” explains the outdoor advertising sales director of the VolgoBalt Media advertising agency. Dmitry Ganibalov.

While there was a need for surface rating data, operators were reluctant to transition to a GRP-based sales system. The fact is that the market situation did not require this and the operators were not interested in spending resources on developing an integral system (especially on conducting expensive studies to evaluate the ratings of all inventory, developing price coefficients and promoting a new system). “The demand for outdoors is so great that there is no need for operators to develop new mechanisms and conduct independent costly studies,” says Alexey Aksenov.

What is the exchange rate?

However, many also have reasonable doubts about whether NOR will be able to implement a GRP sales system now.

The first difficulty in the development of a new model is the lack of a clear measurement mechanism. Average ratings are calculated on the basis of ESPAR-Analyst data. “We use the assessment of pedestrian and vehicle traffic in advertising locations to determine the audience that has a real opportunity to see advertising. For this, a system of factors is used that characterize the quality of the review of the advertising medium,” explains Andrey Berezkin.

The methodology of "ESPAR" is generally the same as in the West, but it does not take into account some details and therefore is less accurate. “For example, in the US, the system is based on information on traffic flows, which are obtained thanks to the serious efforts of the Department of Transportation: they have territorially differentiated detailed information on population movements. Our statistics at the territorial level is in its infancy: these are quite realizable studies, but extremely expensive,” notes Berezkin.

In addition, not everyone trusts the data of a research company by inertia. “With all due respect to ESPAR-Analyst, everyone knows its long-term affiliation with NOR,” says Dmitry Ganibalov. Of course, TNS Gallup's TV data is also questionable, but at least this company has always been independent.

One of the founders of ESPAR-Analyst, established in 1996, was the APR-City company, headed at that time by Maxim Tkachev, now the managing director of News Outdoor Group (NOG) and NOR. In 2000, APR-City was bought by Rupert Murdoch's News Corporation, which included NOG. After this purchase, NOG became the owner of a blocking stake in ESPAR-Analyst. And only at the beginning of 2006, the top management of ESPAR-Analyst bought out NOG's share, becoming the 100% owner of the research company.

Games for the big ones

The introduction of the new system is hindered by the lack of interest of small advertisers in using the GRP sales system: it is much more convenient for them to buy individual billboards.

Buying by rating points should be of interest to large advertisers. “A large advertiser cannot do everything perfectly and “pull out” only the best billboards: he simply does not physically collect so many surfaces. But he does not want to buy the worst surfaces either. And with the new system, he has a real tool that allows him to make calculations,” notes Harutyunyan.

Small customers have a number of complaints about the new system. Firstly, it is not the absolute volume of the audience that matters for them, but the address binding of the advertising structure. "For example, retail stores, who buy several surfaces under the indexes, is not interested in buying under the GRP, - admits Anna Krasilshchikova. “After all, by fixed placement we mean the share of ratings in the prime zone agreed by the client, and not the purchase of specific addresses.”

Secondly, for a small advertiser, the very subjective factors that NOR wanted to get rid of are important. “The disadvantage of this scheme is that the advertiser and the agency are excluded from the process of selecting advertising media,” says Alexey Aksenov. - And for us, the choice of a targeted program is key process. Plus, for a fixed program, NOR sets a mark-up, and this is a lot of money.

Thirdly, for a small advertiser, the error that exists in the new system is too large. “When a major Moscow advertiser takes 200 billboards in St. Petersburg and 20 (only 10%) of them turn out to be bad ones, he will survive. And if a St. Petersburg advertiser has 10 out of 20 billboards that are bad, then this is a collapse, ”continues Aksenov.

Solyanka

The third and main obstacle to the development of the sales rating system is the large number of outdoor operators in Russia.

Industry players simply cannot agree on common standards of work. “Any major advertising program usually consists of both NOR constructs and constructs from other operators. Therefore, a general transition to buying by ratings will become a reality only when most of operators will begin to use this kind of opportunity,” says Evgenia Churbanova.

In addition, small operators do not have enough surfaces to work within the new system. “In Russia, the four largest players account for only about 30% of the market, the remaining 70% are divided by small operators with a share of less than 1% each. Most small companies simply do not have high GRP boards, so this system is unlikely to be quickly adopted by the community,” agrees the head of sales of the second operator of outdoor advertising Gallery Inessa Molodkina.

In the West, unlike us, the outdoor advertising sector is much more developed, and therefore the mechanisms of work based on GRP have long been worked out.

“In every Western European country, there are a maximum of three outdoor advertising operators who oversee the development of industry standards. In France, the development of the sector is determined by JCDecaux, in England it is Viacom Outdoor International. There are not a large number of players with whom advertisers and agencies interact,” says Alexey Kulakov.

In the outdoor advertising industry, due to its lack of consolidation, there is no single sales house where information about the GRP of all operators would be collected. “If you sell using the GRP system today, despite the absence of a single sales house, a situation may arise when a client, having bought a certain number of advertising surfaces from several companies, will receive billboards, which will stand next to each other (since the address program is defined by different operators). In this case, the advertiser will lose coverage even if the required amount of GRP is received,” notes Inessa Molodkina.

Western outdoor advertising generally took a different path of development - operators there sell outdoor advertising not by individual billboards, but mainly by networks that already have fixed rating indicators. “This path is not suitable for us yet,” he says. Alexey Kulakov. “Only one operator in Russia can form 3x6 networks in Moscow, only two in St. Petersburg.”

Evolution is inevitable

Probably, it is the consolidation of the industry that will further affect the development of new sales mechanisms in our country. The only question is how long it will take.

Industry participants are sure of one thing: the transition to the GRP sales system is a natural and inevitable stage in the development of outdoor advertising. “If the market leader sets new rules, the rest of the participants will be forced to adapt to them,” believes Ashot Harutyunyan.

NOR is ready to refine the mechanism. “Our task is to enable clients to evaluate the effectiveness of the new approach and give their assessment of the direction in which we should improve the GRP sales model,” says Anna Krasilshchikova.

As for the sales of surfaces, it makes no sense to completely exclude such a scheme: advertisers have an objective need for the formation of targeted programs. “Perhaps Muscovites will have own system to run national ads. And we will live as we lived, ”suggests Alexey Aksenov.

It is curious that even on regional TV channels, advertisers sometimes buy ads by the minute.

Summarizing, we can say that the presence of two systems is seen by industry representatives as the most convenient option: two systems suggest the possibility of comparing and combining programs, and this is always better than one model, which will be inconvenient for someone.

In any case, the development of more technologically advanced shopping systems depends on how actively customers demand it and how carefully they begin to count money. “And the one who offers customers a more efficient sales system will take a leading position in the industry,” notes Andrey Berezkin.

Ksenia Voronina, correspondent of Expert North-West
"Growth Management" №1-2 (07-08)

Description of the main media indicators

Main functions and tasks of media indicators

With the help of media indicators, you can find out information about target audience media channel

Media metrics help characterize the intensity and quality of competitors' advertising campaigns.

Media indicators allow you to digitize your media strategy, help to compare with the help of accurate calculations different types media carriers and select the correct media channels for the transmission of the advertising message.

Allocate:

measurable indicators - types of media statistics that cannot be known without conducting specialized media research

derived indicators - a set of indicators that can be calculated from the original data set.

Media statistics describing the audience of a single media event

Rating

The basic characteristic, which is the main subject of media measurements. Measured in%.

TV: TVR (television rating) - TV rating

Press: AIR (average issue readership) – average audience of 1 issue

Radio: AQH (audience of quarter hour)

Formula

Calculation example

Let's say that at the moment 10 people are watching a TV channel. Of these, only 5 people watched program number 1.

HUT

HUT (Households using television) - % of households in which the TV is turned on at a given time. Media statistics used for TV measurements. Required to calculate the indicator "Share of TV viewing of the channel".

Formula

Calculation example

Let's say 10 people have a TV. These people make up the general population. At this point in time, only 6 people turned on the TV.

HUT calculation: 6/10*100%=60%

TV viewing share

The share of television viewing of the channel (share) -% of viewers watching a particular channel or program, of the total number of people watching television at a given time.

Measured in%. For calculation this indicator HUT needs to be calculated.

Formula

Affinity index

Affinity index - an indicator used in media planning; shows how more or less typical contact with this media is for a given target audience than for the entire general population as a whole. Measured in%.

The higher the index value, the more the media channel used corresponds to the target audience, which means that the advertising message will be more targeted and reach the right consumer. In practice, it is believed that a good affinity index: more than 100-110%.

Formula

To calculate the indicator, you must be able to calculate the indicators Rating, Aggregate Rating (GRP) and Target Rating (TRP)

Calculation example

At the time the message was displayed, 10 people were watching TV, 6 of which were our target audience. The first program was seen by 5 spectators out of all viewers, and 4 people from the target audience. The second program was seen by 9 spectators out of all those who watched, and 6 people from the target audience.

Affinity index for the first pass: TRP1/GRP1 = 67/50*100% = 134%

Affinity index for second gear: TRP1/GRP1 = 100/90*100% = 111%

Conclusion: both programs are affinative (the value is greater than 100%) and correspond to the target audience. Program No. 1 is more in line with the target audience.

Media statistics describing the media plan

Aggregate Rating (GRP)

Formula

Calculation example

We need to calculate the aggregate rating for an advertising campaign. We place our advertising message in two broadcasts. At the time the message was displayed, 10 people were watching TV, of which 5 people were watching the first program, and 3 people were watching the second program.

Target Rating (TRP)

Target rating (TRP, target rating point) - the total rating gained as a result of an advertising campaign among the target audience, i.e. the total number of ratings of the target audience who saw / heard the advertising message.

The main difference from the definition of the Aggregate Rating (GRP) is that the calculations do not use the entire audience that at the moment had the opportunity to contact the advertising message, but only the target audience to which the message is directed.

Formula

To calculate this indicator, you need to know the calculation of the Rating or TVR indicator (for TV). When calculating this indicator, the general population will be the target audience currently watching the media channel.

Calculation example

We need to calculate the aggregate rating for an advertising campaign. We place our advertising message in two broadcasts. At the time the message was displayed, 10 people were watching TV, 6 of which were our target audience. Since we calculate the target rating, when calculating the number of people who have seen an advertising message, we take into account only people who are part of our target audience group.

The first program was watched by 4 people from the target audience, the second program was watched by 6 people from the target audience.

Campaign reach

Advertising campaign coverage (Reach / Cover%) - the number of people from the target audience who saw the advertising message at least once. It is calculated in thousands of people or in % of the total number of people that make up the target audience.

Often used in media planning:

The larger the N value, the lower the coverage value.

Calculation example

The 1+ coverage calculation will include people who have seen either the first or second program. There were 8 such spectators.

The coverage calculation at frequency 2+ will include only those people who have contacted the message twice, i.e. Watched both the first and second transmission. There were 3 such spectators.

OTS

OTS (opportunity to see) - an indicator used in media planning; allows you to evaluate the total number of contacts in numerical terms (in people) achieved as a result of the campaign, for example, in different cities or in different media.

Formula

Advertising message frequency (Average frequency)

In media planning, the concept of Effective Frequency (EffFq) is often used.

Formula

To calculate this indicator, you need to know the calculation of the indicator Rating, Aggregate Rating (GRP) and Reach of the advertising campaign.

Share of voice (SOV)

The share of voice (SOV) is an indicator of the advertising activity of a brand or an individual product, which means the share of the brand's advertising message in the flow of advertising messages of the entire market / segment for the analyzed period.

Measured in%. Measured in the context of each media channel. (TV, press, internet, etc.)

The share of the voice indicates how much the brand's advertising message is noticeable to the consumer in the general flow of advertising messages of the entire market. The higher the value of the share of voice, the higher the visibility of the brand's advertising message in the segment, the higher the likelihood that the consumer will see and remember it.

Formula

Calculation example

Initial information:

The media weight of the first flight is 2500 GRP, the media weight of the second flight is 2100 GRP.

The forecast for the total annual mediaweight of the category "cosmetics for children" (all competitors + company brand) is 10,000 GRP.

We calculate the total media weight of the brand for the year in the category "cosmetics for children": the total weight of all advertising activities of the brand in this media channel is (2500 GRP + 2100 GRP = 4600 GRP)

Cost characteristics of media

CPT

CPT (cost per thousand) or cost per thousand is a cost indicator used in media planning; represents the cost of reaching 1,000 contacts or reaching 1,000 target audiences.

CPT indicator for comparing the cost effectiveness of individual media and media plans with each other. The lower the CPT, the more effective the media channel in terms of optimizing advertising investments.

Formula

To calculate this indicator, you need to know the calculation of the indicator Rating, Aggregate Rating (GRP), Advertising Campaign Reach, OTS.

CPT for Cover - the cost of reaching a thousand people from the target audience

CPP

CPP (cost per point) or cost per rating point - a cost indicator used in media planning; represents the cost of informing or reaching 1% of the audience. The cost of a rating point is the main indicator of cost effectiveness, primarily of TV campaigns.

Formula

To calculate this indicator, you need to know the calculation of the Rating or Aggregate Rating (GRP) indicator.

Share of advertising spend (SOS)

The share of spend (SOS) is an indicator of the advertising activity of a brand or an individual product, which means the share of the brand's advertising costs in the total advertising costs of the market/segment for the analyzed period. Measured in%.

Formula

The ratio of SOS and SOV indicators

If SOS > SOV: the company uses its financial resources (advertising budget) less efficiently than its competitors. Since a large share of advertising costs provides a smaller share of advertising pressure. This situation is possible if a better contact is achieved (for which an overpayment is possible), otherwise there are resources for cost optimization. Also, this situation may exist for small companies that, without having a smaller budget, place advertising messages at higher prices.

If SOS = SOV: the company uses its financial resources optimally and the next step is to think about cost optimization.

If SOS< SOV: компания использует свои финансовые ресурсы более эффективно, чем конкуренты. Так как за меньший бюджет компания получает более высокий медиавес в категории. Такое соотношение характерно для large companies- media placement leaders who receive favorable conditions (discounts or bonuses) for advertising placement for a large budget.

Advertising to Sales

Advertising to Sales (A/S) is an indicator by which the effectiveness of advertising investments is evaluated. Indicates what % of the advertised brand's sales the company spends on supporting this brand. Measured in%. It is usually considered for the annual period or reporting period of the company.

The lower the value of the indicator, the more effective advertising investments are considered.

There is no clearly established efficiency standard for this indicator. There are a few simple rules to assess the adequacy and realism of the indicator:

If the costs of competitors in the category are known, then the A / S indicator can be compared with the indicators of competitors or with the average industrial value and the adequacy of the indicator can be determined based on the goals of the brand: if the brand is counting on a leader position, then the A / S indicator should be one of the highest , or on par with key competitors

For just starting brands, the A/S ratio can be one of the highest and even approach 60-80%, since when launching a new product (especially if it is important), it is necessary to “swing sales”: increase knowledge about the new product, form an idea of ​​​​the properties goods and image characteristics. But in subsequent years, the A / S indicator for this product should decrease and reach the level of the average industrial one.

If a company has several supported products and brands, then it can compare the A / S rates for each brand and set the best rate based on personal experience.

Ideally, the A/S ratio of the same brand should not increase year by year, should decrease or remain at a constant level. A stable or declining score indicates that the brand is being promoted consistently and effectively, and advertising campaigns are generating good returns.

The A / S indicator for existing / not new brands can grow from year to year in case of fierce competition and the need to strengthen the competitive position of the brand with the help of promotion, if the brand covers new markets, audiences; in the case of setting new communication tasks for the brand that were not set before, etc.

Formula

Variation of the indicator: use instead of the indicator "sales proceeds" - the indicator "net profit of the company". This modification is used by companies very rarely and reflects what% of the brand's profit goes to its support.

Other indicators

Clutter

Clatter - reflects the level of advertising noise, the volume of advertising messages in the category per 1 consumer. The clutter level can be large, small or absent. The clutter level is determined based on the analysis of the presence of competitors' advertising campaigns by analyzing the frequency and coverage of campaigns.

If the clutter is large (i.e. at the time of your product's advertising campaign, many advertisers with high campaign frequency and coverage are advertised), then the ad memorability decreases. With a large clutter, it is recommended to increase the frequency of contact of the advertising message with the target audience, use a variety of creative solutions to increase the visibility of the message, use other media channels in which the clutter level is low.

If the clutter is small, then you need to make the most of low level competition to form and strengthen the leadership of a company, product or service. To maximize knowledge, to form an attitude towards the product, while being based on a reasonable frequency of the message. (See Effective Frequency.

the market is not large in size, and the required level of advertising investment is high and does not allow to recoup the investment;

the consumer is practically not receptive to advertising products in this segment;

the market stagnates or falls;

the market is promising and new (or your product is the first mover in the market), and the level of competition is low.

Ad wear

Wear out of an advertising message is the process by which an advertising message ceases to "work", i.e. as the media weight increases (see Aggregate Rating (GRP) of an ad message, the following indicators stop growing:

for the brand: knowledge and image characteristics

It is impossible to fix the number of ratings at which an advertising message wears out, since this is determined by: the nature of the message (simple - complex), the advertised product (new product - general image), creativity, etc.

The level of wear of the roller is determined using tracking studies, as a result of which the dynamics of indicators responsible for the wear of the roller is recorded.

Relationship between voice share and market share

One of the leading professional bodies in the field of advertising in the UK (IPA - The Institute of Practitioners in Advertising) commissioned Nielsen to summarize all global research in the field of advertising effectiveness and, using Nielsen's internal methods, to evaluate the impact of share of voice (SOV - share of voice) and other marketing factors to increase the market share (SOM - share of market) of the supported brand.

Study Description

Nielsen identified the pattern between change in voice share (SOV) and growth in market share (SOM) based on an analysis of 123 brands across 30 different product categories that use standard advertising methods and commercials without special rewards. For a representative sample, both new and mature brands participated in the study.

The results of this study can be used in media planning of goods and services of the FMCG market when setting the goals of brand advertising campaigns.

Nielsen Research Results

Research results show that there is a direct relationship between the share of voice (SOV) of a brand in a channel and its market share (SOM).

Ceteris paribus, brands with an excess of voice share over market share (SOV > SOM) increase sales in the long run and, through advertising investments, are able to increase their market share.

The ESOV indicator is the brand's market share growth driver.

Formula: ESOV = SOV-SOM, where ESOV - excess share of voice or excess share of voice,% SOV - share of voice or share of voice,% SOM - share of market or market share,%

The revealed regularity is 10: 0.5. A 10 point difference between SOV and SOM provides a market share increase of 0.5%. Those. a brand with a market share of 20.5%, having an excess of SOV>SOM of 10 points, will acquire an additional market share of 0.5% and reach 21% market share at the end of the year.

The bottom line is that if a brand aims to gain market share and uses standardized advertising messages to reach its target audience, it must increase its voice share (or increase its advertising investment). With a reduction in voice share and a reduction in the advertising budget (without compensating for cost reductions by using other means of the marketing mix - new products, prices, new communication channels, etc. - the brand can expect to lose market share in the long term.

Additions to the model

There are a number of factors that affect the change in the established pattern:

brand size. The larger the brand, the greater the market growth will be provided by the ESOV (=SOV-SOM) indicator, since large brands already have a well-built distribution, adapted to the needs of consumers in the product and pricing policy, which helps them use ESOV more effectively.

The position of the brand is a leader or a contender for leadership. With the same ESOV (=SOV-SOM), the market leader will achieve higher share growth than the leader contender. The pattern is as follows: with ESOV = 10 points, the leader's market share will increase by 1.4%, and the challenger's market share by 0.4%. Reason: the leader has a stronger position in the market and his marketing mix works more effectively than the challenger. Accordingly, the applicant must achieve equal conditions with the leader not only in the share of the vote, but also in all points of the marketing mix in order to compete at the same level.

The novelty of the brand and the "youth" of the category. The element of novelty results in a 15-25% increase in response to ESOV (=SOV-SOM). This pattern also applies to a new developing category of goods and services.

The impact of the ratio of voice share and market share on brand strategy

Market share or SOM - share of market - describes the position of the company / brand in the market, measured in%, the model uses market share in value terms.

Market share = brand revenue in period N / market size in value terms in period N.

SOV vs. SOM Relationship Model

To build a model, you need:

Identify key brand competitors in the segment

Fill in the table below according to the following principle: if the SOV indicator of competitors is higher than the brand indicator, the indicator is “high”, otherwise it is “low”. If the brand's SOM indicator is higher than that of competitors, then the indicator is "high", otherwise it is "low".

Brand strategies depending on the ratio of SOV and SOM

Development strategy through niche market segments with a focus on securing a sustainable competitive advantage. Find a market niche - a segment in which the company's brand has the maximum competitive advantages, and competitors' brands are weak positions. The entire brand strategy should be focused on its development in niche segments and strengthening of competitive advantages. All advertising support for the brand should be aimed at strengthening the competitive advantages of the brand. Do not seek to increase the share of the voice, look for communication channels that are relevant to the brand's target audience, in which competitors' brands are poorly represented.

Leadership retention strategy. Increase investment in advertising to increase brand voice share. Achieve leadership in terms of voice share in each market communication channel - the company's brand must be a leader in visibility. Focus all efforts on protecting brand sales from competitors (emphasis in communication on competitive advantages, active use of BTL promotions, investment in target audience loyalty, etc.)

Attack and expansion strategy. Achieve a high share of the vote to attack key competitors in order to switch consumers. Focus advertising investments on building an overwhelming lead in knowledge and loyalty among the audience. Maintain activity throughout the audience buying cycle.

Ostrow Effective Frequency Matrix

The Ostrow effective frequency matrix (Joseph W. Ostrow) is a practical method for determining the effective frequency for an advertising campaign, which allows you to analyze many factors that affect the effectiveness of the return on advertising, digitize all factors and, as a result, determine the minimum effective frequency threshold for an advertising message.

Model Description

The model consists of a table of evaluation of 20 factors that can influence the effectiveness of an advertising message. The 20 factors are grouped into 3 important groups:

market factors,

media factors.

The assessment is carried out for each factor on a 4-point scale from (-2) to (+2). The evaluation is carried out as follows: the initial base frequency for an advertising campaign according to the Ostrow model = 3; after filling in the table, all points scored as a result of the assessment are summed up and added to the initial base frequency; the resulting frequency is the minimum threshold for the effectiveness of the advertising message.

The assessment of many factors is carried out by experts, based on their own experience, knowledge and understanding of the market. In order to make assessments in a more logical and reasonable way, it is recommended to fix for each parameter “what is meant by extreme values ​​(-2 and +2)”.

Details Published: 09/15/2015 09:47 - a marketing indicator that reflects the scale of the advertising impact. It is considered a method of summing up the ratings of the entire advertising campaign across all media.

In addition to the term "GRP", the following variants are also used: cumulative rating, total rating, gross assessment coefficient, gross rating, sum of rating points.

Features of GRP calculation:

• accounting for repeated contacts with an advertising message
• the percentage of GRP is not calculated from the number of all possible contacts, but from the percentage of effective audience

GRP in outdoor advertising

in outdoor advertising, the Gross Rating Point indicator is the percentage of the size of the effective audience (OTS) of the advertising surface to the total market size (the city's population aged 18 years and older)

The media plan may indicate the percentage calculated for each design, or the total GRP of the advertising campaign, in which case it is meant by the term "total rating"

It is important to understand that the total coverage is different from the GRP, although the calculation yields close values. The GRP will not take into account all contacts with an advertising message, only interactions with an effective audience. On the other hand, reach only includes unique contacts, so the sum of all contacts is reduced by the estimated percentage of repeat visits.

The value of an individual design is usually calculated based on daily GRP data, and the reach / frequency of impressions to the target audience is calculated over a period of one month.

OTS- the potential audience of the advertising surface. It is calculated by measuring traffic and pedestrian flows using coefficients that take into account the possibility of contact of all the main components of the potential audience (flows) with an advertising image

CPT- Evaluation of the cost of one thousand advertising contacts. It is calculated as the ratio of the daily price of the advertising surface to the number of possible visual contacts of the base audience with the advertising surface, reduced to an audience of 1000 people.