Building Exchange Rates for Media Currencies MOBIME. Next Media result seminar Anna Viljakainen, VTT Katariina Uljas Ahl, Dagmar Oy
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1 Building Exchange Rates for Media Currencies MOBIME Next Media result seminar Anna Viljakainen, VTT Katariina Uljas Ahl, Dagmar Oy
2 Understanding advertising impact of media and comparable media currencies are the bases of intelligent marketing investment decisions
3 The aim of the MOBIME research project is to find answers to the challenge that due to lack of holistic media surveys, Finland is also lacking an intermedia currency, i.e. an exchange rate for buying and selling media advertising space in different media. The reason for building media exchange rates is to find better measures for ad impact: one media and cross media. There are several ongoing projects in number of markets for building intermedia currencies as they are considered a growth factor for an industry that has a high dependence on advertising revenue
4 MOBIME An Enormous Challenge Media Newspapers Urban and pickup papers Magazines Change in media ad spending in 2009 (change%) 2 22 % 19 % 23 % Share of media ad revenue in total revenue 3 55 % 100 % % Advertising by Medium in 2009 EUR 1264,4 M 1 w/o production costs Newspapers Urban and pick up papers Commercial TV 12 % % Magazines Printed catalogues Online + 6 % % Television Online Outdoor 18 % 100 % Radio Cinema Commercial radio 2 % % Outdoor 1) TNS Gallup Media Intelligence, Finnish Advertising Council 2) Ibid. 3) Statistics Finland and Association of Finnish Advertisers
5 Media Surveys = Currencies each media have their own TV Audience Measurement TAM [TV mittaritutkimus] The National Readership Survey NRS [Kansallinen mediatutkimus KMT] The National Radio Listening Survey KRT [Kansallinen radiotutkimus] Outdoor Impact (TNS Atlas) (TNS Metrix) are not comparative have been initiated to serve the respective medium are built for traditional media but media brands are becoming crossmedial measure quantity, rather than quality have great differences in the depths of information are collected using different methodologies do not measure impact of advertising
6 How to compare apples with pears? Official currency Measured media Sampling Sample Sources of sample The National Readership Survey (KMT Lukija) Readerships of publications 190 national and 250 regional publications Two phase stratified random sampling, based on municipals of Finland Finnish and Swedish speaking population, aged 12+, living in continental Finland 97 % from Population Register Centre, 3 % company mobile sample TV Audience Measurement (TV mittaritutkimus) Viewing figures for programmes, breaks and spots TV channels, including cable channels Random sampling, representing TV households in Finland Residents aged 4+ in TV households Population Register Centre Annual Sample Size 24,000 (from Spring 2010) Panel size: 1,100 TV households (about 2,300 people) Data collection method Frequency of reporting Computer assisted telephone interview (CATI) Twice a year on a continuous basis one year at a time. People meter data Continuous 24 hour measurement of inhome viewing Survey data owner Levikintarkastus Oy Finnpanel Oy Tool for data processing NettiKMT, MediaPlanner Arianna, AdvantEdge, and TV stations internal processing systems
7 Mobime Project Objective Increase comparability between existing media surveys Examine the harmonisation needs in current media data Develop a proof of concept to specify whether data integration is possible, and under what conditions Investigate whether a single intermedia currency or exchange rates between currencies will be developed Demonstrate an on demand reporting system Get more qualitative elements added to media surveys that are said to yield mainly quantitative results: increase understanding of advertising impact Create national know how about merging media data
8 Intermedia Currency or Exhange Rates? Intermedia currency The euro A tool for intermedia strategic planning All intramedia currencies would be evaluated and rated equally A more static measurement Exchange rates between currencies The francs and pesetas (i.e. readerships, viewing, listening figures ) A tool for tactical planning Currencies becoming comparative being enriched with data from other currencies Measurement of currencies executed differently and scaled against one another Each medium retains own currency that follows its own cycles and methodologies Exchange rates exist and develop based on the changes made in each currency
9 Drivers to Merge Media currency Data Share and save the costs of collecting data and overlapping work Jointly develop new tools and methods to media survey data Enrich the media data of each partner Get more comparable media metrics for buying/selling media
10 Year 2010 focusing on key objectives Board meetings: Concretizing and prioritizing our objectives Industry interviews: Identify the needs and wants of the media industry, media houses and advertisers Roles of different media in consumers lives Media currency comparability Consumer behaviour and media experience Media impact and effectiveness Marketing/ad impact A media survey data content analysis of 3 currencies Listing of key questions to be solved to enable the success of data integration International benchmarking (IPA TouchPoints in the UK)
11 Year 2011 a lot of key questions need to be solved Under what conditions is data integration possible? Technical issues Statistical issues Business issues Legal issues What is the extent/benefit for data/knowledge transfer among the parties? How will media outside existing currencies be considered? How will new media be measured? What are strategically the key issues to be measured? What currency is chosen to function as a hub survey? How is qualitative data on media use collected cost efficiently? Who are the administrators / owners of the end product? How can the quality of the end product be verified and ensured?
12 MOBIME Participating Organisations In 2010 Dagmar Oy Finnpanel Oy Nelonen Media Sanomalehtien liitto TNS Gallup Oy VTT Project budget: In 2011 Dagmar Oy Finnpanel Oy Nelonen Media Sanomalehtien liitto TNS Gallup Oy JCDecaux Kustannus Oy Aamulehti Sanoma News Mainostajien Liitto MTV Oy RadioMedia mfabrik Oy Levikintarkastus Oy VTT Aalto University Project budget:
13 A major benefit of MOBIME for the project partners is that discussions have begun as to how media data should be unified in one way or another. We have started to build a common vocabulary in terms of issues that are relevant in data collection or reporting when aiming at the comparability of currencies. MOBIME Final Report
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