Media Minute - Glenn Lee

Media Minute

Posted on | by jpmktg

The world of media is a vast one! This edition of Media Minute breaks down some key terminology, math, and must-knows for ad campaigns.

Media 101

Media platforms are constantly changing. However, the current landscape can be loosely categorized as follows:

  • Traditional
    1. Television
    2. Cable
    3. Radio
    4. Out-of-Home

  • Digital
    1. Social media
    2. Programmatic
    3. Native
    4. CTV
    5. Streaming Video
    6. Search
    7. Emails and surveys

Terminology

With all these mediums, we ask ourselves, “How do we measure and compare results?” To solve this, we can use impressions as our main metric for guidance, which allow for performance comparisons between traditional and digital platforms.

Impressions

  • One impression is essentially one view of the ad, including duplications
  • If one person sees the ad three times in one day, that would bring a total of three impressions even though it is the same person viewing the same ad during the same timeframe
  • Often used in “CPM” or “Cost-Per-Thousand Impressions” – the cost to reach 1,000 people

GRP/TRP (Gross Rating Point/Target Rating Point)

  • The main sum of ratings for traditional media
  • One rating point represents one percent of the given population/universe
  • More points equal more views
  • Calculate by multiplying total audience reach by the frequency

Reach and Frequency

Reach and Frequency is an important measurement tool when planning and buying traditional campaigns, as we want to avoid imbalanced plans such as low-reach and high-frequency (over-exposing a small number of people with the repeatedly with our message).

  • Reach: Unduplicated percent of different people/households
  • Frequency: Average number of times the target was reached

Media Math in a Minute

Cheat Sheet

Here’s a list of some of the must-know media equations:

  • Cost-Per-Thousand Impressions
    • CPM = 1000 * (Cost of Campaign $) / (Impressions)
  • Cost Per Click
    • CPC = (Cost of Campaign $) / (Clicks)
  • Click Through Rate
    • CTR = (Clicks / Impressions) * 100
  • Conversion Rate
    • CR = (Conversion actions / Clicks) * 100
  • GRP = Reach * Frequency

Glenn Lee, Media Buyer