Set TV Spot Time Zones Based on Qualitative Indicators

Currently, TV spot buying is conducted based on household GRP (Gross Ratings Points). However, advertisers generally try to communicate to specific consumer 'targets', not entire households. As you may know, 'target ratings' (or TARP, Target Rating Points) are calculated based on only demographic data. In fact, these ratings do not consider any psychographic information related to the targets. Therefore, a target rating of 1% has the same value in each of the following cases;

1. 1% of conservative thinking target viewers, and 1% of innovative thinking target viewers
2. 1% of target viewers reading also reading a newspaper while watching TV, and 1% of target viewers who are concentrated on watching TV
3. 1% of target viewers who constantly switching channels, and 1% of target viewers who are watching TV without often changing channels

In addition, SPI believes that the value of 1% target ratings has diverged even more with the growth of Internet and mobile phone usage in Japan.

From this background, discussion on real value of target ratings, in other words 'qualitative ratings', has intensified.

In the following case study, SPI's analysis focused on clarifying target ratings with real value. The study had two objectives:

1. Determine which TV spot time zones have real value.
2. Determine how much increased value can be expected by concentrating TV media investment within the TV spot time zones with real value.

As you may know, general TV viewing research data is very limited in Japan (e.g., INEX by Video Research). However, SPI was able to develop a new, comprehensive qualitative indicator by combining several pieces of general and media research data.

For this case, our overall qualitative indicator was based on the following indicators which we believed had influence over the effectiveness of advertising (Note that this qualitative indicator was an original development by SPI);

1. TV viewing trend (i.e., program's conformity with psychological profile of target)
2. TV viewing condition (i.e., level of concentration while viewing program, etc.)
3. TV viewing length (i.e., of continuous viewing before switching channels)

After we clarified the qualitative values by time zone, we were able set effective and efficient time zones for the TV campaign. Then, we simulated how much increased value could be expected from the changes.

In this case, the results varied by target and the use of different effective TV spot time zones. However, the overall result was that we could confirm increases of +5~35% on a qualitative target rating basis by setting appropriate qualitative time zones. Next, we would like to confirm how much is the effect contributes to increased ad awareness, and perhaps even sales, based on this QRP approach.

Example of a simulation result

Author: SPI

Please contact us with questions or for more detailed information.
spiindex@spi-consultants.net