November 2002  
Reach/Frequency and GRPs on the Web: November 2002 Update
By David L. Smith
In my previous articles, I have talked about the reasons we need online R/F and GRP tools, the progress made by the ARF in setting standards for online reach and frequency, and the alliances made by various entities within the industry.

This month’s article will deal with several related issues in addition to giving the reader an update on new developments.

 
First an update on basics. There seem to be two different bases for GRP definition floating around. As stated in my first article, “Reach is generally couched in terms of a percentage of the universe. For traditional media, this universe is generally total U.S. population for the target audience in question.” The same holds for GRPs. Some of the vendors who are attempting to sell R/F and GRP programs are using the Internet universe as their definition for computing percentages (which is all that reach and GRPs are, reach being a net percentage and GRPs being a gross percentage of the universe). Since different vendors define the Internet universe differently, each vendor’s GRPs are going to be different. Also, the biggest reason for this standardization move is to compare the Internet to traditional media. This can only be done if all are computed on the same basis, a universe of total U.S. population.
Relative to reach and frequency, the ARF and other knowledgeable research entities have encouraged the vendors to combine data from the third party server (SCM) for paired duplication computations with data from the survey companies (UCM) which have demographic and reach curve or cume potential data. In spite of this, a number of vendors are insisting that they can go it alone and simulate reach curves. Study of the matter does not bear this out and I continue to believe that the two sides of the equation (SCM and UCM) must be combined to yield data which is relevant.

As reported previously, there are three different types of companies who are stakeholders in the creation of R/F systems. They include the survey companies: Nielsen NetRatings and comScore (including Media Metrix); the third party servers such as DoubleClick’s DFA, Atlas DMT and Bluestreak; and the reporting software companies who provide interfaces to this and other media audience research data such as IMS and Telmar.

As indicated above, the survey companies have been releasing their first cuts at reach and frequency based on their data alone. For example, the Media Metrix part of comScore has a spreadsheet based program in release based on simulation work done by Steve Coffey. This is a fine effort as far as it goes. But it will need debugging, an applet rolled around it and data brought in from an SCM for it to be a complete product. In addition, comScore is in discussion with just about everybody in this field. They have licensed their data to Atlas DMT to use on an aggregated basis, are in discussions with IMS for a version of WebRF, are looking at a more robust data release with Media Metrix 2.0 and are contemplating capabilities such as R/F by daypart and channel as well as a R/F planning optimizer. This concept, which is used in traditional media, should assist the planner in zero based planning when it is unclear how extensive a buy needs to be to reach the plan goals.

NetRatings has released a product in conjunction with IMS called WebRF (there is some question as to who owns the WebRF name with both, as divisions of VNU, laying claim to it). This product is similar to the Media Metrix program but much more advanced in interface, capability and data points. The interface is arguably the best in distribution at this time. There are some issues with something called scaling factors that I will deal with below. The capability is extensive as far as it goes. It does not have a combination with UCM data at that point but I am told the WebRF+ product will have this capability. As far as data points, NetRatings is the only provider at this point that can provide BTB data points in addition to consumer demographics. A big plus as many of the big spenders on the Web are not consumer but business products and services. In addition, WebRF is the only system that provides granularity down to the channel level. WebRF is available in 12 countries at this time.

IMS has plans to go beyond the WebRF model with WebRF+ as mentioned above. They have already deployed a version of this with Ogilvy & Mather, using O&M third party server data as the overlay. They also have a product called Sitecume that does not have a clear positioning at this point, starting with the name. While it does measure campaign reach and frequency rather than site reach, the name is misleading and not a natural attraction for the media planning or buying community. Web RF+ is expected to be deployed within DoubleClick’s MediaVisor at the beta or working prototype stage by the end of the current quarter, but the end deliverables are unclear at this point. The ability to combine data from the two arguable leaders, DoubleClick and NetRatings, is anxiously waited for on the part of the agency and seller community.

Atlas/DMT remains the only provider that has successfully combined SCM and UCM data in one reach and frequency program in the use of comScore data in conjunction with their third party ad server data. Their offering is not however available on the desktop as yet. In order to use their system, one must provide plan alternatives to them to run. This is a big impediment to the normal media planning and buying process where development of reach and frequency alternatives is an iterative rather than one time process. They expect version 2.0 (that will give desktop capability) to be released “real soon now”, at the latest by the end of the current quarter. The next version should have both domains and sub domains, be reflective of newer comScore/Media Metrix data, and be available for publishers as well as agencies.

Telmar still has discussions going on with the various vendors as well as their own development. Primary conversations are with Atlas but Atlas is reported to be talking with IMS too. I expect to be able to talk more about Telmar developments in future articles.

A final issue to discuss is one of scaling factors. A key part of the WebRF product at this point calls for planners and buyers to understand what percentage of a site they are buying, thus inputting a scaling factor which will adjust the R/F accordingly. There is pushback from those in the agency community who indicate that this should be something the software does and not left up to the user. Telmar has reportedly come up with a solution to calculate the Run Rate (rotation) and Reach & Frequency of an online campaign given ad impressions and duration (and optional frequency cap) as goals for a given site or group of sites.

Using the respondent level frequency distribution of page views, Telmar’s WebPlan software tabulates daily, weekly, and monthly unique visitors, pages and page views at the domain and sub-domain level. It then calculates the R&F over any number of days or weeks, along with the Run Rate required to deliver the campaign results against any measured demographic target.

Heretofore, users of web R&F systems have been reluctant to enter an estimate of the Run Rate, via what many refer to as a “scaling factor”. As an example, if a web publisher accepts an order for 5 million impressions spread over a 4-week time span, WebPlan will now calculate what percent of the time the ad needs to be there when the surfer visits each site in order to deliver the requested buy specs.

In the end, all of these programs are only one part of the needed pie, the planning and pre-buy part. Final releases from the key vendors will need to have the ability to track the reach and frequency of a campaign as it is in progress as well as a post-analysis. After all, in the end, the proof of whether a reach and frequency estimator is accurate and provides the correct algorithms and data inputs will be established through post analysis. If the actual post-buy R/F is equal or relatively close to the pre-buy R/F estimate, media planners, buyers and sellers will have what they are looking for.


David L. Smith, President and Media Director of Mediasmith, Inc. in San Francisco is a nationally known expert in the areas of new media application, media strategy and media planning. A thirty-seven year veteran in the advertising media management arena, Smith has a major involvement in national committee work to establish and refine standards in metrics, business practices and financial issues for Interactive advertising with organizations such as the AAAAs, IAB, OPA and the ARF. He currently chairs the Online Reach & Frequency Committee for the ARF.