Research and Marketing Terminology

Research and Marketing Terminology

Every industry has its own set of industry specific jargon and terminology associated with it.  An informed buyer is more likely to make smart business decisions so Digital Smart Media took some time to assemble a list of commonly used marketing terminology some sales executives will try to use to induce you to make a purchase.  We recommend checking back to this page periodically to freshening up on before making any major marketing decision.

Digital Smart Media – Nielsen Measurement

Here is a link to nielsen measurement website.  Nielsen is frequently used by the major television networks and agencies to determining the cost value of the specific advertisement.  Neisen has been known to be the standard in television audience measurement until recent years.  Measurement systems such as rentrack have recently provided more relevant information in the traditional media space.  like many other measurement systems nielsen understands they will need to evolve to includes new ways media companies are using to attract viewers. If you would like to talk to digital smart media about your companies advertising needs contact us and we would be happy to help!

Digital Smart Media – Audience Composition

Knowing how each advertising medium works and utilizing its strengths is something Digital Smart Media prides themselves on.  With tools like google analytics Digital Smart Media can understand the demographics, interests, behaviors, and geography of a businesses current customers.  This information is useful in working with a business owner to show results of increases of desired customers within a targeted audience.

Demographic based audience composition

The demographic audience composition is important because it allows us to create marketing material geared specifically towards an individual group.  For an example a residential plumbing/hvac companies target audience composition might be Women 35-64 Primarily and A50+ secondarily.  They could be looking for someone with a higher discretionary income or they might be looking to offer the customer financing options. Interest based information allows us to expand your advertising into related markets focusing on exactly what your users are likely to seek out.  an example would be a signature loan company targeting M18-34 would consider implementing a pre-roll player SEM campaign on gaming, car related, fitness, or hunting sites.

Geo-targeted Behavior audience composition

Cable television, mailers, ppc, and bus wraps are examples of how each medium can deliver a geo targeted message by location, language, and demographic.  Digital Smart Media can help analyze your current clients and identify potential high converting markets. Do you have a content based business that a customer will be frequenting your website for information? Is your business within the service based industry that customers call twice a year to tune your heater and air conditioning units? This information is extremely important to digital smart media in planning our marketing mix.  The lifecycle of each business is different and needs to be accounted for accordingly.

Digital Smart Media – Reach and Frequency

Reach refers to how many people saw your advertisement and Frequency refers to how many times an individual person have seen it. A sales representative will typically supply a proposal that will include the reach and frequency totals for the duration of the campaign.  With so many forms of advertising opportunities available using an advertising agency to work with you in your media efforts allows you to leverage the market fragmentation creating unique qualities of each media type. Digital Smart Media will tailor the the overall media plan to maximize the reach and frequency of the targeted audience. Buying purely by numbers sounds great right? Actually the majority of sponsorship and unique promotional  opportunities have a higher CPM than spot buys. Finding the right media mix to maximize reach and frequency in relevant content is a better way of looking at it. If you are interested in having Digital Smart Media evaluate your current media mix and provide a tailored media plan Contact Us and we would be happy to help!

Digital Smart Media – Rating Point

A rating point is the size of a media outlets audience calculated into a percentage. Each media type has its own acronyms but such as Houses using television (HUTS) or people using Television (PUTS).  The sum of all of the rating points in a campaign is called gross rating points. In the post analysis process digital smart media will have the stations provide a post log that we can calculate actual rating points delivered vs the order we agreed upon at the beginning.  Industry standard is 90% and we will hold them to it.

Digital Smart Media – Target Rating Point

A target rating point is the sum of all rating points in the desired demographic or target audience.  Target rating points are one of the biggest things a media professional will start with in planning a clients media mix.  The calculations for finding GRP’s or TRP’s is by multiplying the reach by the frequency.  If you would like more information on target rating points or have questions concerning your businesses advertising exposure Contact Us and we would be happy to help!

Digital Smart Media – Cost Per Thousand CPM

Cost per Thousand or CPM is the price of 1000 advertisement impressions on whichever advertising medium you are wanting to purchase.  This is a very common term among television and digital advertising while radio might use cost per mile and newspaper will use circulation. Digitally places like google allow many advertisers to utilize CPM bidding on the google display network to help your business be found by potential customers.  Typical goals of a CPM campaign to consider would be if you are more concerned with your ad being viewed that clicks generated.  This form of bidding will never charge you more than what is needed to rank higher than the advertiser  immediately below you.

If you need more information on how to utilize the CPM of different advertising vehicles contact us and we would be happy to help!

The Formula for Calculating Cost Per Point (CPP) is the cost of buying one Rating Point, or one percent of the target population.

Cost Per Point is used in many of the traditional advertising methods and is the cost of one household or demographic rating point in a given market. The Cost Per Point method is used in media planning and evaluation and it is calculated by dividing the cost per spot by the rating, or in the cost of a number of spots, their total cost by the total ratings or GRPs Media planners calculate CPP to compare the costs of different outlets. Most media planners gather rates and ratings from media outlets that include rate and ratings  from that specific station. If you would like to learn more about how Digital Smart Media can help your business maximize your cost per point contact us and we would be happy to help

Designated Market Area – DMA

The DMA as a group of counties that make up a particular television market that comprise the major viewing audience for the television stations located in their particular metropolitan area. The metropolitan areas correspond to the standard metropolitan statistical areas defined by the Federal Government Office of Management and Budget and do not overlap. Every county in the United States belongs to only one Designated Market Area used to evaluate the audience composition and help media planners make strategic marketing decisions.

Digital Smart Media – Post Buy Analysis

Media buying is the negotiation and placement of advertising in various media.  A post buy analysis is the evaluation of the pre negotiated placement and viewership of the advertisements. Professional advertising agencies have programs that will run each spot through a system recording actual time run and assigned the correlating rating points for the agreed upon target audience.  This program will determine spots that ran out of the agreed upon time period flagging us to negotiate a credit, discount, or bonus spots. Industry standard posting requirements are 90% meaning if we purchased 100 TRP’s from the Fox affiliate and they delivered 70 points we would require them to make up a minimum of 20 points over an agreed upon flight.  an experienced media buyer will accumulate under delivery weight and put it to use during the next flight or when it will have a much greater impact for the client they are working with.  Some agencies allow stations to let them run the weight off as they see fit.


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