1. The Target Audience Let’s start with Target Audience (also known in marketing circles as a Target Market) A target audience represents the people we most want to talk to Having a target audience enables us to tailor our message and our media buying specifically to reach and influence these people, thus avoiding ‘wastage’ (i.e. paying to reach people who are unlikely to buy our product) For the sake of this exercise, let’s say our target audience is all people aged 25-54. To keep things even simpler, our total population (below) consists of just 10 people, 50% of which (5 people) are aged 25-54

2. Performance Metrics In the real world our target audience will be much larger than just 5 people, but by having just 5 people allows us to see a real life example of how the Performance Metrics work at a very simplistic level We will look at the viewing habits of each person in our group of 5 people and show how these mesh together to form the metrics we see on media schedules each day

3. Performance Objectives of the Campaign A schedule has been constructed to reach the maximum amount of 25-54 year olds and our agency has sent us a spot list which reads as follows; Our objectives on our launch night are 200 ratings with a 90:10 peak: off peak split, 80% 1+ reach, 60% 2+ reach with an average frequency of 2.5 What does this all mean? And how, using the viewing of our 5 people do we get to this result?

4. Anna Anna is 28 and lives in Auckland. She is married with a 7 month old son. On Tuesday 4 August Anna’s night went something like this… – 5pm Husband Aaron home from work – 5.40pm Aaron feeding the baby while Anna watches Masterchef on TV ONE – 6pmBath & Bed time for baby, dinner time for grown ups! – 7.10pmBaby in bed and Anna settles down to watch Shortland Street – 7.20pmAnna is still watching Shortland Street – 7.40pmAnna stays with TV2 for The Apprentice – 8.10pmAnna engrossed in The Apprentice – 9.10pmAnna stays on TV ONE to watch Packed to the Rafters – 9.30pmAnna heads of to bed All the times that Anna saw the advertisement are highlighted in blue above and on the spot list. As you can see from this, Anna saw the advertisement four times

5. Megan Megan is 33 and lives in Wellington. She works as a Legal Executive in the CBD. On Tuesday 4 August Megan’s night went something like this… – 5pm Megan is still at work – 5.40pm Megan is tidying up the last of the tasks for the day – 6pmMegan meets up with her friends for a quick bite at Shed 5 – 7.10pmMegan is a Shortland Street Fan so gets home for her fix – 7.20pmMegan is still watching Shortland Street – 7.40pmMegan watches the Apprentice on TV2 – 8.10pmMegan is still engrossed in The Apprentice – 9.10pmMegan switches to TV ONE to watch Packed to the Rafters – 9.30pmMegan is updating her facebook page All the times that Megan saw the advertisement are highlighted in blue above and on the spot list. As you can see from this, Megan saw the advertisement three times

6. Lisa Lisa is 41 and lives in Christchurch. She is a nurse at the local doctors and lives with her teenage children. On Tuesday 4 August Lisa’s night went something like this… – 5pm Lisa leaves work for the day – 5.40pm Lisa cooks dinner for the kids – 6pmLisa watches ONE News while eating dinner – 7.10pmKids head of to watch Shortland Street – 7.20pmLisa stays on TV ONE watching Close Up – 7.40pmLisa switches to TV ONE and watches Coronation Street – 8.10pmLisa engrossed in Coronation Street – 9.10pmLisa helps the kids with their homework – 9.30pmLisa jumps on the computer to catch up with her e-mails All the times that Lisa saw the advertisement are highlighted in blue above and on the spot list. As you can see from this, Lisa saw the advertisement two times

7. Peter Peter is 49 and lives in Auckland. He owns his own business, providing marketing advice to companies On Tuesday 4 August Peter’s night went something like this… – 5pm Peter is still at work – 5.40pm Peter is working on a presentation for a client – 6pmPeter is putting the finishing touches on the presentation – 7.10pmPeter meets up with a work contact for a drink – 7.20pmThey decide to head out to dinner at Cibo – 7.40pmPeter and friend arrive at Cibo – 8.10pmPeter decides to go with the Duck Confit – 9.10pmStill nursing a glass of red wine – 9.30pmPeter heads back home All the times that Peter saw the advertisement are highlighted in blue above and on the spot list. As you can see from this, Peter didn’t see the advertisement

8. Julie Julie is 53 and lives in Hamilton. She has recently cut back her hours at work to spend more time with her grandson On Tuesday 4 August Julie’s night went something like this… – 5pm Julie is reading a book – 5.40pm Julie gets dinner ready – 6pmJulie and her husband sit down for dinner – 7.10pmJulie chats to her daughter on the phone – 7.20pmIt’s a long conversation! – 7.40pmJulie switches to the TV to watch Coronation Street – 8.10pmJulie glued to Coronation Street – 9.10pmJulie goes on tvnz.co.nz to find out more about Coronation Street – 9.30pmJulie settles in to watch Real Life All the times that Julie saw the advertisement are highlighted in blue above and on the spot list. As you can see from this, Julie saw the advertisement one time

9. Putting it together - TARP’s? Each person in a sample equates to a percentage of the total audience In this case each person represents 20% of the total audience (but in normal circumstances they would be far less than this) To get TARP’s the percentages are added together – so for the ad playing at 7.10pm we would add Anna (20%) and Megan (20%) together to get a total of 40 (or 40% of the total audience viewing at that time) To get total TARP’s we add all the individual percentages together

10. So, what is a TARP? A TARP (or GRP or rating point or rating) is the total cumulative percentage of your target audience who had the opportunity to see your advertisement

11. 1+ reach? To calculate 1+ reach we look at the percentage of our total audience who have seen the advertisement one or more time In this example four of the five people (80%) have seen the advertisement at least once

12. So, what is a 1+ Reach? It is the percentage of your target audience who had the opportunity to see your ad one or more times

13. 2+ reach? To calculate 2+ reach we look at the percentage of our total audience who have seen the advertisement two or more times In this example three of the five people (60%) have seen the advertisement at least twice

14. 3+ reach? To calculate 3+ reach we look at the percentage of our total audience who have seen the advertisement three or more times In this example two of the five people (40%) have seen the advertisement at least three times

15. Average Frequency? To calculate average frequency we take the total number of times the ad was seen (10 times) and then divide it by the number of people who saw the advertisement (4), to give us an average frequency of 2.5 As he didn’t see any ads Peter is not included in this calculation

16. So, what is Average Frequency? It is the average number of times that your target audience (who have viewed the ad) had the opportunity to see your ad

17. Peak:Off Peak Mix? To calculate the off peak percentage we take the percentage of TARP’s appearing outside of the peak hours of 6pm – 10.30pm (20 tarps from a total of 200 – equating to 10% of the total)