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Genergraphics (TM) Ratings for Radio
September 2, 2008
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To understand Genergraphics Ratings, we need to begin with the years immediately following World War II. That was when the study of demography led to marketing, advertising and research using demographics to gather data for the media and their clients. At that time, generational differences were not considered.
The Resulting Progression:
Demographics: Shows the age, gender and income of people. Demographics can also tell us what products people buy and how often they buy them. But this is where it stops.
Psychographics: Shows why people do what they do based upon the lifestyle and patterns of their generation. Psychographics also tells us how we can get them to do it for us.
Genergraphics®: It can do what psychographics does based upon mindset, plus it can tell what influence one generation has or does not have on another generation. It allows you to market to one generation without alienating another.
Currently, ratings services provide detailed demographic data that has been used as the industry standard for many years. The process of Genergraphics® Ratings takes demographic data a step further by separating the generations and their mindsets for marketing and advertising. It is important to remember that no generation follows another in mindset, based upon the social circumstances in their youth.
By enhancing current demographic data with this generational ratings formula, which breaks out a generation(s) age, radio sales staffs would be equipped with the preeminent tool on the street to increase billing and to sell to advertisers who are increasingly seeking more accountability in media buys, especially in local markets.
How Genergraphics Ratings Works:
When using this ratings method, the Cost-Per-Point and Cost-Per-Thousand would still be determined by applying the standard formula that is now used with a demographic age group. Then you extract the actual ages of the generation you are trying to reach and calculate what percentage of that generation is in your demographic age group.
Example: in a 25-49 demographic, the generational percentages are Gen-X 48%, Baby Boomer 24% and Echo Boomer 28%. If your client is going after Gen-X, this would be the demo to use.
This formula will mathematically lower the CPP and CPM as you will be going after Gen-X only, using a commercial targeted to reach their mindset.
If a client wanted Gen-X only, the stations that ranked highest for this generation would be the only ones selected. A commercial is then created that targets the mindset of Gen-X. For Echo Boomers you would look at 18-34, and for Baby Boomers, 35-64.
Cost-Per-Point Example:
Client wants to reach Boomers (ages 43-61 in 2007)
Client wants a goal of 40 GRPs on each station they buy.
Station KAAA-FM is using Genergraphics Ratings.
Station KAAA-FM Spot cost is $300 Standard Demo of Adults 35-64 yrs. Genergraphics Demo of Adults 41-60 yrs. AHQ is 0.6 RP ÷ $ 300 spot cost= $500 CPP AHQ is 1.0 RP ÷ $ 300 spot cost= $300 CPP 40 GRP ÷ 0.6 = 67 spots must run to get GRP 40 GRP ÷ 1.0 = 40 spots must run to get GRP 67 spots × $300 spot cost = $20,100 40 spots × $300 spot cost = $12,000 Cost-Per-Thousand Example:
The average CPM for station KBBB for Adults 25-60 is 108.88.
Client wants to advertise to the Baby Boomer.
Station KBBB is #1 in its market for Adults 41-60 years.
Using Genergraphics Ratings, the CPM on station KBBB would be 23.62.
Echo
BoomerGen-X
Baby
BoomerAverage
CPM(00)
(00)
(00)
25-34
CPM
31-40
CPM
41-60
CPM
Average
KBBB
18
166.66
22
136.36
127
23.62
108.88
MARKET DEMO RANKING
15
9
1
*Based Upon Average Spot Cost of $300- 15 spots per week
How many times have you heard an advertiser sa,y "I have tried radio and it does not work?" If you were using generational ratings like this, you can respond in that you are reaching one generation at a time, eliminating a lot of waste with our radio buy, which will make it easier to track.
If your radio group has two or three generations listening to it, then you can take the station that is the strongest for each generation, which will make it easier for you to sell the group.
When you lower the CPP and CPM for your client, you can increase the spot cost because you are eliminating all of the waste realized with the demographic grouping. Radio stations will also use less of their inventory, while increasing billing.
The good news regarding commercials created using this process is that you can sell the same product or service in the same market at the same time without alienating any other generation.
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