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MFA TV Exam > Module 3 - Buying > Flashcards

Module 3 - Buying Flashcards

1
Q

What is the generic nine stage buying process for agencies?

A
  1. Sign the MBA/buying brief
  2. Develop pre-buy
  3. Set up schedule
  4. Replace N/As
  5. Final check
  6. Track adjustments, optimise
  7. Post analysis and track
  8. Makegoods
  9. PCRs
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2
Q

What is an MBA?

A

Media Buying Authorisation - it outlines details of the TV buy and needs client approval (signature on the MBA) prior to locking in the television buy

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3
Q

What elements are apart of the pre-buying process?

A
  • Checking out market conditions and seeing if the air-time is “high demand” or “low demand”
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4
Q

What are two buying options?

A
  • Buying on screen (and send the buy to the networks)

* Brief networks for a prop

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5
Q

What is the process for the seller?

A
  1. Agency to send booking to network (e-booking)
  2. Sales to manually book
  3. N/A’s
  4. Network and agency to negotiate N/A replacement
  5. Network to book and confirm activity
  6. Sales to manage campaign changes/spot moves/optimisation as requested by the agency
  7. Traffic to manage placement and material
  8. Networks to confirm any additional value
  9. Makegood airtime
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6
Q

How long before a campaign goes to air should it be approved and booked?

A

13 weeks prior

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7
Q

How long before a campaign goes to air should N/As be replaced?

A

12 weeks prior

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8
Q

How long before a campaign goes to air should we have the buy summary over to the client?

A

9 weeks prior

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9
Q

How long before a campaign goes to air should we have the final buy report to the client?

A

2 weeks prior

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10
Q

How long before a campaign goes to air should we have the spot list to the client?

A

1 week prior

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11
Q

When should we send out a PCR?

A

4 weeks post campaign

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12
Q

What is dynamic & automated trading?

A

The use of automated trading to deliver an agreed number of people within an age and gender demographic (e.g. Galaxy).

Also known as Advanced Advertising and is sold on a CPM and impression basis.

  • The audience or impressions are guaranteed, this is done through frequent optimising to deliver the audience across day parts rather than specific programs by the TV networks
  • Executed using software automation
  • The buyer briefs the networks based on budget, CPM, impressions and any exclusions.
  • The buyer has no control on specific spot placements (although parameters can be set), but this is not guaranteed.
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13
Q

What is addressable TV advertising?

A

The ability to show different ads to different households while they are watching the same program.

  • This can only be bought on an internet enabled device for online video e.g. BVOD
  • Can be bought to a segment rather than a standard age/gender demographic e.g. “likely to buy a Ute in the next 3 months”
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14
Q

When is it a good idea to buy on screen?

A
  • Soft market conditions
  • Long lead times
  • Client specific parameters
  • Program quality
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15
Q

When is it a good idea to brief the networks on a campaign?

A
  • Short lead times (under 4 weeks)
  • Availability pressures in market
  • Program specific requirements
  • CPM deliverables
  • Sponsorships
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16
Q

If you have a combination of lengths (e.g. 15, 30, 45, 60) and these are being placed to tell a story, what buying method is best?

A

Buying on screen

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17
Q

What are the pros of briefing?

A
  • Networks may be able to find available inventory

* It is quicker than buying off screen

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18
Q

What are the cons of briefing?

A
  • Delay in network responses
  • Program selection may not be what the buyer wants
  • May not meet R&F requirements
  • Lack of control and overall visibility
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19
Q

What are the pros of buying on screen?

A
  • The buyer selects the programs
  • The buyer manages R&F across all networks
  • The buyer can review the reach build
  • It is quicker, as you’re not waiting for props
  • Ensures accurate TARP estimates
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20
Q

What are the cons of buying on screen?

A
  • Time consuming
  • Network custom surveys (may not match selection)
  • Airtime not available
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21
Q

What are some of the benefits of dynamic buying?

A
  • Networks guarantee the delivery of schedules
  • Removing the need for agencies to optimise mid campaign
  • Chase makegoods for under-delivery
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22
Q

How can we buy Addressable TV as BVOD in the TV mix?

A
  • Direct IO buy with the TV networks

* Programmatic via a trading desk (either agency owned or third-party company)

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23
Q

What buying markets does OzTam cover?

A

Metro and National

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24
Q

What buying markets does Regional TAM cover?

A

Regional

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25
Q

What does the regional combined panel do?

A

Provides audience figures at a regional sub-market level e.g. Newcastle, Canberra, Bendigo

26
Q

What is the morning daypart timezone?

A

6-9

27
Q

What is the daytime daypart timezone?

A

9-5pm

28
Q

What is the fringe daypart timezone?

A

5-6pm

29
Q

What is the late night daypart timezone?

A

10:30pm - 12am

30
Q

What are the two different data types when measuring audience viewing?

A
  • 1/4 hour (used for buying)

* Minute by minute (used for post)

31
Q

What is quarter hour data?

A

Estimates for standard demo groups by channel. These files are created from the Elemental data that has gone through Gold Standard processes, however viewing details are not broken out by person

32
Q

What is minute by minute data (aka Elemental data)?

A

Viewing info of household and individual panel members for each minute. Essential basis of reach & freq. calculations. Use of Elemental data must use ‘Gold Standard-accredited’ software

33
Q

What genres of programming can have up to a 20% difference between 1/4 and minute by minute data?

A
  • Reality
  • Drama
  • Event programming
34
Q

What are the three different data options?

A
  • Overnight
  • Consolidated
  • Consolidated 28
35
Q

What is overnight data?

A

Delivered each morning for the previous research day, incorporating ‘Live’ viewing at the time of broadcast (‘Live’) and viewing of content that was broadcast, recorded and played back by the end of the official research day at 2am

36
Q

What is consolidated data?

A

OzTam final ratings data incorporating ‘live’ viewing and viewing of recorded broadcast content that is played back within seven days of original broadcast

37
Q

What is consolidated 28 data?

A

Incorporates ‘live’ viewing and viewing of recorded broadcast content that is played back within 28 days of original broadcast.

38
Q

What are the top 5 most popular demos?

A
  • P25-54
  • W25-54
  • Total Shoppers with CH
  • Total Shoppers 25-54
  • M25-54
39
Q

When should you use L4W surveys?

A
  • When buying short - within 13 weeks
  • New programming had commenced on air
  • Changing market conditions
40
Q

When should you use STLY surveys?

A
  • When buying with long lead times
  • Special event programming
  • Buying over holiday period
41
Q

What are the cost implications with lead times shorter than 13 weeks?

A
  • Quality and cost efficient inventory may not be available (as purchased by other advertisers that provide earlier approval)
  • Can greatly impact the ability for campaign to deliver on cost (CPM) and reach
  • The below chart outlines the cost implications, based on different lead-times; these are shown as an index
  • For example, if your client only gives you 10 weeks lead time it can increase the cost by up to 10% or 3 weeks lead time can increase the cost by 30%
  • However, it is important to know these cost indexes will alter depending on the time of year and the demand for airtime in the market

If the plan was prepared well in advance but the client has only just approved it (within 8 weeks of the buy) you need to ensure the planner has adjusted the CPTs, otherwise goals may not be delivered

42
Q

MBA’s are a document sent to clients outlining activities planned for approval to sign off budgets. What should an MBA cover?

A

Timing, media types, budget and include an authorised signature (client name/title/date) and it’s always worthwhile to attach the actual media plan to the MBA.

Each agency will have their own version, the point is that you should never start booking a media plan until you have the client’s approval to book in writing

43
Q

What is an agency commission? (and how do you calculate it?)

A

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)

e.g. if your Gross media spend is $100,000, the agency commission would be $10,000, therefore the invoice from the media will by $90,000

44
Q

What is Gross cost?

A

The media cost, which includes the 10% agency commission. It does not include GST. Most common term used in discussions with TV networks.

e.g. if your media cost is $100K and the agency commission is 10% ($10K), you would not deduct agency commission. Gross cost is the full cost media cost ie. $100K

45
Q

What are the two net costs that media agencies use?

A
  • Net cost to media, which is media cost excluding commission
    e.g. Gross media cost = $10K
    Less 10% commission or times by 0.9. So net media cost = $9K
  • 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 calculate would be Net media + client fees (commission rebate or service fee) + media levy (which is calculated on gross media)
e.g. Gross media cost = $10K
Net media = $9K
Plus client fee ($9K x 0.05 = $450)
Plus media levy ($10K x 0.0005 = $5)
Net to Client is $9K + $450 + $5 = $9,455

46
Q

What is a media levy?

A

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 optional levy.
The levy is 0.05% of gross media and paid by advertisers

47
Q

What is a spot monitoring fee?

A

Fee charged for the third party verification of TV spot appearance for Post Analysis. This fee is charged from 3rd 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.

48
Q

How does GST come into play with invoicing?

A

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.

49
Q

What is the calculation to go from Gross cost to Net Cost?

A

Gross x 0.9

50
Q

What is the calculation to go from Net Cost to Gross cost?

A

Net / 0.9

51
Q

How do you calculate TARPs?

A

Reach x frequency

52
Q

How do you convert a CPT to a CPM?

A

CPM = (CPT x 100) / potentials in 000s

e.g. if CPT is $800 in Sydney for W25-54 and the potential is 1,142,000. You would multiply the CPT $800 x 100 and then divide by the potential (in 000s) of 1,142 your CPM would be $70,05.

53
Q

How do you convert a CPM to a CPT?

A

CPT = (CPM x potential in 000s) / 100

e.g. to calculate the CPT in Sydney for W25-54.
$70.05 x 1,142 - $79,997.10
$79,997.10 / 100 = $800

54
Q

How do you calculate the average TARP?

A

TARPs divided by spots

55
Q

How do you work out the frequency?

A

TARPs divided by reach

56
Q

What are standard cancellation deadlines?

A 
FTA = 4-6 weeks
STV = 6 weeks
57
Q

What is delete and charge activity?

A

If activity needs to be cancelled within the cancellation deadline, it will need to be Delete & Charge. Meaning 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.

58
Q

What should you do when you’re buying to a reach goal with low frequency?

A
  • Book highest rating programmes (tentpole) first, as these will form the basis of your reach
  • Select the same time slot on each networks (e.g. Sunday 1800 on Seven, Nine, Ten, SBS) as your audience generally aren’t watching all 4 weeks at once, so you will have the most unduplicated reach
  • this is also known as the roadblock tactic
  • Limit double spotting in programs, as it will build frequency
  • Choose a different genre of programs each week or burst i.e sport, news, drama, reality
  • Spread spots across the program format
  • Skew programs to Sunday-Wednesday which offers the higher viewer audience
59
Q

What should you do when you’re buying to a reach goal with a high frequency?

A

The same theory applies as to how to build reach. Additionally:

  • Add in double spotting
  • Select some of the same programs from week to week and burst to burst
  • If Survivor is right for your target audience, buy a spot in this each week. This will reach the same viewer, thereby building frequency.
  • Adjacent programs can help with building frequency
60
Q

What should you do when you’re buying to TARPs and not reach goals?

A
  • Generally, ranking the programming buying software from cheapest to most expensive by CPT - this would give you the cheapest TARP delivery
  • High rating programs (e.g. tentpoles) would not necessarily feature in this list, as the cost could be quite high for those programs.
  • Look outside of the list if you have a program genre to include

MFA TV Exam (6 decks)

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