BROADCASTERS VIEW Audience Measurement and programme Ratings - PREPARED BY: ABDUL MATHEE - Broadcast Media Africa

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BROADCASTERS VIEW Audience Measurement and programme Ratings - PREPARED BY: ABDUL MATHEE - Broadcast Media Africa
BROADCASTERS VIEW
                            Audience Measurement and programme Ratings

PREPARED BY: ABDUL MATHEE                                                FEBRUARY 2016
BROADCASTERS VIEW Audience Measurement and programme Ratings - PREPARED BY: ABDUL MATHEE - Broadcast Media Africa
BROADCASTERS VIEW
                                                          Audience Measurement and programme Ratings

MEDIUM              SALES                    RESEARCH             ADVERTISER             AUDIENCES

         1 May 1950
                                     THE FIRST NATIONAL
         Springbok Radio made                                  FIRST COMMERCIAL
                                     MARKET RESEARCH                               SPRINGBOK HAD 632
         its first broadcast.1952,                             EVER TO BE
                                                                                   000 ADULTS LISTENING
                                     SURVEY INTO A RADIO       BROADCAST ON THE
         SPRINGBOK RADIO                                                           TO IT ON AN AVERAGE                                                  One of three SABC Mobile
                                                               SABC RADIO WAS A
RADIO                                STATION WAS DONE IN                           DAY – AT THE HEIGHT                                                  Recording Units, which
         WAS BRINGING IN R                                     TEN WORD SLOGAN                                  The doyen of black broadcasters, King
                                                                                                                                                        accompanied the South
                                                                                   OF ITS POPULARITY, IT                 Edward Masinga
                                     1952, TWO YEARS AFTER     FOR EDBLO                                                                                African
         MILLIONS WORTH OF                                                         HAD AN AUDIENCE OF                                                   troops to North Africa, during
                                                               MATTRESSES ON
                                     THE BIRTH OF SPRINGBOK                        OVER TWO MILLION!                                                    the second World War
         ADVERTISING                                           SPRINGBOK RADIO
                                     RADIO
         REVENUE.

                                                               JUST AFTER 18:00,
                                                               THE FIRST EVER 30
         1 JANUARY 1978              OVERNIGHT AUDIENCE        SECOND TV
                                                                                   SABC called for tenders
  TV     THE SABC INTRODUCED         DATA IS AVAILABLE ON TV   COMMERCIAL FOR
                                                                                   to bid for the first slot.
                                                               BIG T BURGERS WAS
         TV COMMERCIALS ON.          PLATFORMS                 FLIGHTED ON SABC
                                                               TV
BROADCASTERS VIEW Audience Measurement and programme Ratings - PREPARED BY: ABDUL MATHEE - Broadcast Media Africa
JOURNEY OF SA TELEVISION
Audience Measurement and programme Ratings

                                             3
BROADCASTERS VIEW Audience Measurement and programme Ratings - PREPARED BY: ABDUL MATHEE - Broadcast Media Africa
JOURNEY OF SA RADIO
                         Audience Measurement and programme Ratings
140%

120%

100%

80%
                                                                         % Share
60%                                                                      Linear (% Share)

40%

20%

 0%
   1940   1950   1960   1970   1980   1990   2000   2010   2020   2030
                                                                                            4
BROADCASTERS VIEW Audience Measurement and programme Ratings - PREPARED BY: ABDUL MATHEE - Broadcast Media Africa
CHALLENGES WITH RELIABLE
MEASUREMENT AND RATINGS DATA
BROADCASTERS VIEW Audience Measurement and programme Ratings - PREPARED BY: ABDUL MATHEE - Broadcast Media Africa
BROADCASTERS VIEW
             Challenges with reliable measurement and ratings data

PROGRAMME                 SKEEM SAAM            MUVHANGO
TIMEBAND               S1 18:30 S1 18:30 S2 21:00 S2 21:00
D.O.W                  TVR        CPP      TVR         CPP
Mon                          15,8     7344        18,5     8892
Tue                          20,6     7479        18,1     9136
Wed                          16,7     7396        15,7    10185
Thu                          19,4     7998        14,7    10975
Fri                          15,1     8290          15    10856
                                            Average
Average %AR Deviation    -27%                 %AR        -19%
                                           Deviation
                                            Average
 Average CPP Inflation   -11%                  CPP       -18%
                                            Inflation
BROADCASTERS VIEW Audience Measurement and programme Ratings - PREPARED BY: ABDUL MATHEE - Broadcast Media Africa
BROADCASTERS VIEW
                                                            Challenges with reliable measurement and ratings data (LSM Trends 2001 to 2013

         In the 12 years, since 2001, significant upward mobility is evident. In the 2013A report some 61% of the Adult population resides in the upper LSM
         6+ segment, compared to only 35% in 2001. Notably the most disenfranchised LSM 1-2 segment has dwindled to below 5% of the Total Adult
         Population. Good news for the economic prognosis of South Africa is continued strong growth in the Upwardly Mobile LSM 6/7 sector. The LSM
         trends encapsulate the basis for a variety of phenomena evident in shifts in media consumption and adoption of increasingly more sophisticated
         lifestyles and purchase behaviour overall.

   Adults (000s):          30,656     31,109     34,018      34,934     37,214
         100%
  %
          90%            16.3                  17.1               20.4                 23.3                23.5
Adults                                                                                                                          24.9
          80%
          70%
                         18.5                  22.0
                                                                  26.6                                                                                LSM 8-10
          60%                                                                          30.2                34.3                 36.3                  LSM 6/7
          50%
                         40.7
          40%                                  41.6                                                                                                   LSM 3-5
          30%                                                     39.1
                                                                                       37.8                36.7                                       LSM 1/2
          20%                                                                                                                   34.4
          10%            24.5                  19.3               13.9                  8.7
           0%                                                                                               5.5                  4.4
                         2001                  2005              2007B                2010A               2012A                2013A

                                                                                                                                                   SOURCE: AMPS
BROADCASTERS VIEW Audience Measurement and programme Ratings - PREPARED BY: ABDUL MATHEE - Broadcast Media Africa
TAMS RESEARCH :
Challenges with reliable measurement and ratings data (Issues Uncovered by the TAMS Audit)

                       Disparity between the weightings
                        Affluent vs lower income levels:

        •A single panel member in an affluent target group could be
        weighted to represent 6,000 viewers in the TV Universe, whilst a
        panel member in a low income group could be weighted to
        represent as many as 99,000 viewers.

         •Weightings per panel member were 'capped' at 99,000. As such a
         potential for lower income groups to be under-read which
         worsened as the TV Universe grew YOY.
BROADCASTERS VIEW Audience Measurement and programme Ratings - PREPARED BY: ABDUL MATHEE - Broadcast Media Africa
BROADCASTERS VIEW
                                            Importance of Ratings for Revenue Generation
              FORMULAE

                             Base CPP/CPT/CPM
       HOW                   AR/Share
                             Rate

                                      INFLUENCES

                                             Demand
                            What             Demographs
                                             Seasonality

                                                       EXTERNAL FACTORS

                                                             Media Inflation
                                                 HOW         Fragmentation

Source: SABC Pricing Grid

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BROADCASTERS VIEW Audience Measurement and programme Ratings - PREPARED BY: ABDUL MATHEE - Broadcast Media Africa
IMPORTANCE OF RATINGS FOR REVENUE GENERATION
                                            Trading Models

FIXED RATES OR
   RATINGS                      AUCTION &                       STATION PRICE
                                 SCATTER                          COST PER
                                                                SHARE MODEL
Importance of Ratings for Revenue Generation
                                                                                                      Spot v Audience Selling

                                                    COMPETITIVE AUDIENCE DEALS                                                                                         COMPETITIVE CHERRY PICK DEALS
                                                     Packaging strategy: Ability to offer niche audience market offering                                               Marketing to Niche audiences is expensive.
WORKS BEST WITH: AUDIENCE & STATION AVERAGE PRICE

                                                      with low wastage to advertisers.                                                                                  Audience fragmentation

                                                                                                                            WORKS BEST WITH: CHEERY PICK SPOT BUYING
                                                     Inventory on terrestrials channels limited to available ratings                                                   Demand for premium spots impacts inventory and revenue

                                                                                                                                                                         INTERNALLY
                                                    ADVERTISERS AND MEDIA AGENCIES                                                                                        Less criticality to forecast audiences accurately
                                                     Push for lower CPP’s/CPT’s
                                                                                                                                                                          No audience guarantee
                                                     Demand forecasting
                                                                                                                                                                          Advertisers feel in control, especially for effective reach
                                                     Audience forecasting
                                                                                                                                                                          Push for higher discounting
                                                     Price linked to universe / CPT
                                                     Flexibility on inventory management

                                                                                                                                                                         INTERNALLY
                                                    Predictive Modeling                                                                                                   Equilibrium price
                                                     Difficult to forecast: Skills needed                                                                                Less flexibility: need to compensate for errors
                                                     Audience Guarantees: Risk of running out of Ratings                                                                 Inventory – purely based on negotiation power
                                                     Predictive modelling can become very labour and statistically                                                       Requires schedule stability
                                                      intensive require vast amounts of resource.
                                                     Create a database of trends. (i.e. by Genre and audience profile).
BROADCASTERS VIEW
                                   Audience Measurement and programme Ratings

       SPOT vs. AUDIENCE DEALS)                STATION /SHARE PRICE                     AUCTION / SCATTER

    Inventory is sold on spot or                        Proactive Value Creation
        audience basis,                                                      A period during which inventory is sold
                                           Electronic “stock-market” model   on spot basis, in bulk with ratings
                                               based on eBay approach        guaranteed

                                            Value Proposition Dissemination
MODELS SELLING SPOTS
   Ratings not guaranteed                                                    Electronic “stock-market” model based
                                                                             on eBay approach
                                     TRADING MODELS

                             Proactive Value Demand Identification
MODELS SELLING AUDIECES
   Ratings guaranteed

Reactive Value Demand
                                                                                                                       12
INNOVATIVE SOLUTIONS FOR MEDIA
    PLATFORM OWNERS AND
         ADVERTISERS
INNOVATIVE SOLUTIONS
     INTERGRATED MEDIA             Audience Measurement and programme Ratings
   Brand integration across
          platforms.

   Commercial is replicated
      across platforms

Instantly start the social media
    conversation, by being
  exposed to the story line in
            advance.

 Continue the Brand/Content
discussion across radio stations
the next day via Live reads etc.
AUDIENCE MEASUREMENT IN A DIGITAL AGE
                                    …Creating an environment for a sustainable future

                                        TV VIEWERSHIP                                RADIO LISTENING
V.O.D / MOBILITY

                          ON DEMAND                    INNOVATION                 STRATEGIC PARTNERSHIPS

                    CONTENT CONSUMTION ON THE GO  USER GENERATED CONTENT        FIXED PLAYLISTS    STREAMING
#THEEND
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