How many ratings can I buy?

Ratings = /cpt/universe x 100,000

For example, if you have a budget of 500,000, the cpt is 6.20 and the
universe is 48m, you will be able to buy 168 ratings
How much will it cost?
Money = TVRs x cpt x universe / 100,000
For example, if you want to buy 400 tvrs at a cpt of 6.20 with a universe
of 48m, it will cost you 1.19m
What is the cpt?
Cpt = /universe/tvrs x 100,000
For example, if you want to buy 200 tvrs, you have 600,000 to spend and
the universe is 48m, the cpt you need to buy is 6.25
Time Lengths
Please note that for all calculation purposes, it is assumed you are buying
a 30 second campaign as this is the industry standard. If you are buying
different time lengths, you will need to apply a factor. Time length factors
are as follows:
60 2.0
50 1.67
40 1.33
30 1.0
20 0.8 (this varies from broadcaster to broadcaster and sometimes is
0.85)
10 0.5
Therefore, looking at how many ratings you can buy with different time
lengths, you first need to calculate the 30 second equivalent ratings and
then convert them to your specific time length by dividing your 30
equivalent tvrs by your factor.
For example, if you are buying 400 30 equivalent tvrs, this would equate
to
200
240
300
500
800

60 tvrs
50 tvrs
40 tvrs
20 tvrs
10 tvrs

If you are buying a campaign with a variety of different time lengths, you
will need to work out an overall factor.

For example, if you are buying 20, 30 and 40 in a ratio of 1:1:2 then
your factor would be 1.115
For example, if you were buying 10 and 20 in a ratio of 4:1 then your
factor would be 0.56
For example, if you were buying 60, 50 and 40 in a ratio of 2:5:1 then
your factor would be 1.71

Agency Deals
Some agencies negotiate deals on a client by client basis in order to tailormake the deal to suit each individual advertiser. Other agencies may
negotiate an agency deal. This means that the agency pools together all
of their clients money and then negotiates an over-arching deal that the
agency administrates on behalf of all its advertisers. Usually this takes
the form of an overall share and/or volume incentives in exchange for a
selection of prices by target audience relative to the average station price.
Station Average Price
SAPs are calculated by dividing total revenue by total viewing. It is a
straightforward supply and demand equation. This means that if the
supply (viewing) goes up, the price will come down but if the demand
(revenue) goes up, the price will go up. Station Average Prices are
calculated monthly and for each audience that the broadcaster trades on.
Some audiences are easier to reach like all adults and some are much
harder to reach, like ABC1 Men. Therefore, the station average price for
adults will be significantly cheaper than for ABC1 Men.
It is likely that, along with the share and price agreement, a TV planner or
buyer will want to include additional quality parameters into the deal.
These could include:
Daypart
A planner/buyer may want to agree to a fixed daypart that best reflects
the audience they are buying and at what times of day these viewers are
most likely to be watching.
Different dayparts have different values depending on their popularity. For
example, the majority of people watch TV in peak (1730-2300) and
therefore this is the most demanded and also the most expensive daypart.
It is possible to buy whats known as natural delivery which means that
the daypart is in keeping with the overall stations delivery. If peak is
upweighted, it is likely that a cost premium will be incurred. If daytime or
late night are upweighted, it may be possible to negotiate a discount.
Standard dayparts are as follows:

Breakfast
time
Daytime
Peak
Post peak

0600-0859
0900-1729
1730-2259

(Early peak: 1730-1959 and late peak: 20002259)

2300-2429

Night time 2430-0559

First/Last in Break
It is generally believed that advertisements that are broadcast either first
or last in break will be better remembered/more highly engaged
with/enjoyed more than ads in the middle of the break. Therefore some
planners/buyers will try to include a minimum guarantee of FIB and LIB
spots at least in line with natural delivery. As these spots are considered
more valuable, it is likely that any upweight of these spots will incur a
price premium.
Centre break/end break ratio
Research has shown that viewers are more attentive to centre breaks than
they are to end breaks. Therefore most planner/buyers will try to build into
their deals a guaranteed minimum percentage of centre breaks at least
in line with natural delivery. As centre breaks are considered more
valuable, any upweight of these spots are likely to incur a price premium.
Programme selection
Nowadays, most schedules are booked by a computer. However, it may be
that it is important to have some control over programme selection and to
ensure that, if there are some key programmes that are totally spot on for
the campaign, then they can be requested. Therefore a planner/buyer
may try and build into the deal a certain percentage of programme
selection
Different Types of Deals
Some deals are not traded on a SAP related price. Other types of deals
include

Fixed cpts

Cost/rate per minute

Cost per response

Cost per sale

These types of deals tend to be used for DRTV advertisers and are often
available in daytime only if at all.

Audiences
Although BARB measures over a hundred different audiences, most
broadcasters will only trade on about 20 audiences. Therefore the actual
audience trying to be reached will need to be converted into a buying
audience that best fits. For example, if the target is the main shopper in
the house, then the buying audience would be housewives. If the target is
men who like football then the buying audience might be 16-34 men. If
the target is women who earn over 30,000 per annum then the buying
audience would probably be ABC1 Women. Within the buying audience
that has been selected, it is possible to select programmes that are most
appealing to the actual target audience.
Channels
Most broadcasters/sales houses will want you to construct a deal that
encompasses all the channels that they sell.
For example, if you do a deal with Channel 4, it is likely that you will agree
a deal that covers More 4, E4 and Film4 as well. Similarly, if you trade with
ITV, you can expect to do a deal across all 4 ITV channels. Channel five
has 3 channels and the same applies.
Sky Media sell airtime across a wide range of channels. Not only for their
own channels but also others such as the Discovery channels, National
Geographic Channel, Hallmark, The History Channel, Sci-Fi, FX Channel,
ESPN and At The Races plus others. Viacom Brand Solutions sell airtime
for Nickelodeon, all the MTV channels, Paramount Comedy Channel and
VH1. Turner Media Innovations sell airtime for Cartoon Network,
Boomerang. These sales houses usually construct deals that involve all
the channels that they sell and each advertiser will buy a proportion of
airtime on each.

When buying television campaigns, it is important to think about flighting.

This means the weight of ratings that you buy each week. Examples of
flighting are as follows:
Burst this is a heavyweight of advertising over a short space of time. It
is used then you want to reach a large number of people quickly. If you
were buying 400 ratings, a burst of advertising would most likely be 100
tvrs per week over 4 weeks
Drip this is a much lighter weight of advertising over a longer time
frame. This type of flighting might be used when you want your campaign
to have a slow burn and build cover slowly over time. It also means that
you will be on air for as long a time as possible. If you were buying 400
ratings, a drip campaign would most likely be 25 tvrs a week over 16
weeks.

Pulse People have the ability to remember television advertising pretty

well. Therefore if money was limited and you wanted to be on air for as
long as possible you might opt for a pulse campaign. This means
advertising week on week off. If you were buying 400 ratings, a pulse
campaign would most likely be 50 tvrs every other week for 16 weeks.
It is also necessary to think about the levels of coverage and frequency
you want to achieve. Cover means how many people in your target
audience you reach and frequency means how many times they see the
ad. Ideally, you will reach as high a proportion as possible of your target
with a frequency that is appropriate to your ad.
If you have a very interesting high impact ad with a clear uncomplicated
message, it will only need to be seen once or twice for the message to be
understood. However, it you have an ad with an in depth message that is
in a low interest category, viewers will need to see the ad several times in
order for the message to be received loud and clear.