3. Buying/Trading Flashcards

Question

SBS representation

Answer 1

SBS represents its own channels (SBS, SBS Viceland, SBS Food and SBS World Movies as well as NITV) in regional markets - however please note that the regional NSW market is sold as a whole, and not split between Northern and Southern NSW.

Answer 2

Sydney - N, Melbourne - V

Answer 3

A rebate paid by media suppliers in return for media bookings. Traditionally 10% of media spend is rebated back to the agency at invoice stage. The media agency will have agreed terms (client/agency contract) that will outline what % of the commission the agency keeps as their fee for work and the rest is rebated back to the client (on the invoice it will show as a commission discount on gross media). Example: If your Gross media spend is $100,000 the agency commission would be $10,000, therefore the invoice from the media will be $90,000.

Answer 4

Gross cost is the media cost, which includes 10% agency commission. It does not include GST. Most common term used in discussions with TV networks. Example: If your media cost is $100,000 and the agency commission is 10% ($10,000), you would not deduct agency commission. Gross cost is the full cost media cost, i.e., $100,000.

Answer 5

1. Net cost to media, which is media cost excluding commission. For example: Gross media cost ($10,000). Discussions with the media is always gross media cost. Less 10% commission or times by 0.9 ($10,000*0.9 = $9,000). $9,000 is the net media cost. 2. Net cost to client. The way this is determined varies by client. The service fee can be charged on Gross or Net Media Cost. Ensure you always check with your team. This example is based on Net cost to client. The calculation would be, Net media, plus client fees (commission rebate or service fee), plus media levy (which is calculated on gross media). For example: Gross media cost (e.g., $10,000) Net media ($10,000 less 10% commission is $9,000) Plus client fee ($9,000*.05 = $450) note 0.05 is an example, and client contracts vary Plus media levy ($10,000*0.0005 = $5.00) Net Cost to Client is $9,000+$450+$5.00 = $9,455.00

Answer 6

The Media Levy is used to fund the Industry Self Regulation system, Ad Standards. Ad Standards is owned by the AANA (Australian Association of National Advertisers), but is independent. The cheque gets sent to the AANA who administers it to Ad Standards. It is an opt-out (optional) levy. The levy is 0.05% of gross media and paid by advertisers.

Answer 7

Fee charged for the third party verification of TV spot appearance for Post Analysis. This fee is charged from Third-Party suppliers such as Nielsen to an Agency for the data. The data received at an Agency will detail the exact time the spot appeared, the program name and position in break. Generally, this fee may be passed onto the client which is known as the Spot Monitoring Fee. This will vary by agency and by client contract and may not be passed on at all.

Answer 8

Goods & Services Tax. Federal government tax of 10% of the cost of goods or services, including media bookings (this applies to all companies unless they are exempt). The TV Networks will include GST on the Net total, and 10% is added to the agency invoice (to the client) on net spend. Some clients will require this to be outlined on the media plan, so they have the full spend picture.

Answer 9

The share of budget to be allocated to each network according to negotiated deals. Example: Network deals were 35% to Seven; 35% to Nine; 30% to Ten. Budget $1m. Seven network budget = $1m x 0.35 = $350,000 Nine network budget = $1m x 0.35 = $350,000 Ten network budget = $1m x 0.30 = $300,000

Answer 10

The agreed % of audience delivery of your actualised TARPs v bought. Example: In general the networks will guarantee to deliver TARPs +/- 10% of your booked TARPs. This tolerance level can alter depending on Network, agency deals, so it is very important you are across these details and discuss them with your sales rep. This tolerance level is generally agreed with networks to be based on consolidated 15 min delivered TARPs.

Answer 11

Refers to a period of time activity needs to be cancelled by, without penalty to the client. This period can vary at different times of the year, and can vary based on client or agency deals, so always make sure you know what it is. Historically the last quarter can have longer cancellation deadlines. Standard deadlines are: FTA = 4 weeks STV = 6 weeks

Answer 12

If activity needs to be cancelled within the cancellation deadline, it will need to be “Delete & Charge”, also known as D&C. Meaning the spots do not go to-air but the cost of the airtime booked is still invoiced to the client. The value of the airtime can be rebooked at no charge at a later stage, but it's important to understand that Delete & Charge should always be the last resort for a client, as re-booking the airtime in programs that you want can be difficult, particularly in a high demand market. Also if the airtime that is Delete & Charge was originally booked in March and then the client wants to rebook the value of that airtime in September, they will get less for their money i.e. March is a cheaper rate card than September.

Answer 13

If activity needs to be cancelled 3 days or less prior to the activity going live, it will need to be “Drop & Charge”. This means the spots do not go to-air and the cost of the airtime booked is still invoiced to the client but the value cannot be recouped at a later date. Check with your agency what is their agreed policy with the networks for Drop & Charge.

Answer 14

Audiences 000s

Answer 15

A TARP goal means that spots can be bought anywhere, including low demand off Peak areas. TARPs don’t indicate how many different people you are reaching or how many times. ● For example - a TARP of 10 could mean 1% of the target audience saw an ad 10 times or that 10% of the target audience saw it once. ● Historically TARPs were the main type of TV goal, however now there are various tools that can assist to determine the reach of the audience and how many times they’ve seen the ad (frequency). No one TARP is alike or the same.

Answer 16

Reach – Reach is a more targeted approach to TV Buying. ● More accurate and reflective of the actual delivery of the audience. ● For example - a 1+ Reach of 10% means 10% of the target audience saw an ad at least once. ● Reach also caters to different market viewing habits. Reach also has different market cost efficiencies, as the same reach in each market can mean very different TARP goals and hence cost. When a media plan has a 50% 1+ reach goal in each market of Sydney, Melbourne and Brisbane, you will likely need to buy different TARP weights in each of those markets to deliver the 50% 1+ reach. The reason for this is a combination of different viewing levels and potentials for each market. For example, 50% 1+ Sydney = 200 TARPs 50% 1+ Melbourne = 170 TARPs 50% 1+ Brisbane = 180 TARPs

Answer 17

Reach & Frequency

Answer 18

TARPs Necessary as they demonstrate how much it will cost to deliver the reach goal against the target audience.

Answer 19

1. Strong Sunday/Monday buy 2. High rating programs 3. Tracking unduplicated audience viewing 4. Road blocking (Select same time slot on each network, audience isn't watching all at once) 5. Varied programming

Answer 20

1. Double spotting 2. Strip programming e.g. News on every day of the week 3. Top and Tail 4. Similar programming 5. Adjacent programming e.g. consecutive shows on the same network

Answer 21

- Rank programs in SMD by CPT - Look outside the list if you have a program genre to include

Answer 22

TARPs cannot be added up across markets To get a total TARP estimate across multiple markets, you need to weight TARPs by each market’s % of the population. How to calculate this: * You first need to know the audience potential of each market - to work out what that market potential represents as a percentage of the total population. * Then apply that percentage against the market TARPs, continue for each market and add together for the total.

Answer 23

Live (Linear) TV Linear TV is received via an aerial, satellite or cable. i.e., any TV that is not viewed over the

Answer 24

Playback TV Linear TV recorded on a Personal Video Recorder (PVR) or other form of time-shifted technology and watched after the time of Live broadcast. Also referred to as Time-Shifted TV.

Answer 25

Broadcaster Video on Demand (BVOD) ● TV watched online is BVOD. ● It can be watched either Live (via live streaming) or On Demand and is available via a set top box, personal computer, mobile device or connected TV. ● BVOD content is professionally produced, broadcast quality and includes TV shows and movies, archived shows and BVOD exclusive and originals. Sometimes referred to as Catch-up TV.

Answer 26

Live Streaming BVOD watched over the internet at the time it is broadcasted.

Answer 27

On Demand BVOD watched over the internet at any time other than at the time of original broadcast.

Answer 28

Video on Demand (VOD) A facility offered by online video providers (not just broadcasters) where households or individuals can access a movie, program or clip that can be watched at any time on any device.

Answer 29

Advertiser-funded Video on Demand (AVOD) Any type of VOD service that is funded by the inclusion of advertising in between programs, movies or clips. This includes both BVOD services and services where the content is more heavily skewed to User- Generated Content (UGC) such as YouTube.

Answer 30

Subscription Video on Demand (SVOD) A type of Video On Demand service where a user pays a regular subscription to watch content. Most SVOD services are non-commercial and don’t contain advertising. Netflix, Amazon Prime, Disney+ and Stan are the major players in Australia. Paramount+, KAYO and Binge are other examples of SVOD services, with a lesser number of subscribers. Due the increase in consumption of SVOD services, it is expected that there will be many more players entering the market in the coming years.