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The Power of Two

The Power of Two. Presented for: The Ad Group. Presented by: Aimee Ruhl Cheryl Riley Terry Wilson Lee Tank July 24, 2003 QCTimes.com. Description of Quad-City Market Study. Presentation Objectives. Provide newspaper readership facts based on Quad-City Times research information

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The Power of Two

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  1. The Power of Two Presented for:The Ad Group Presented by: Aimee Ruhl Cheryl Riley Terry Wilson Lee Tank July 24, 2003 QCTimes.com

  2. Description of Quad-City Market Study

  3. Presentation Objectives • Provide newspaper readership facts based on Quad-City Times research information • Provide Sample TV media plan for the Quad-City market • Demonstrate how newspaper advertising complements television advertising • Demonstrate how newspaper advertising improves media delivery

  4. Demographic Profile Total Adult Population 230,142 Total Number of Households 123,100 Population by Gender Average Household Effective Buying Income Male Adults 110,037 Scott County $43,015 Female Adults 120,105 Rock Island County $41,776 Quad City Market Q-C Times Readers Quad City Market Q-C Times Readers Age Income 18-24 13% 10% Under $20,000 13% 10% 25-29 10 9 $20,000-$ 24,999 8 6 30-34 7 7 $25,000-$29,999 9 8 35-39 10 9 $30,000-$34,999 11 8 40-44 11 11 $35,000-$49,999 17 20 45-49 9 10 $50,000-$74,999 28 30 50-54 11 13 $75,000-$99,999 8 11 55-64 13 14 $100,000 and up 7 7 65+ 18 17 Two-Income Household (Those Who are Married) County of Residence Two Incomes 66% 67% Scott 51% 69%Single Income 34 33 Rock Island 49 31

  5. Readership • Quad-City Times Readership in Scott & Rock Island counties – 10/2002 • Daily in the past week – 123,500 adults aged 18+ • Saturday last week – 92,400 adults aged 18+ • Sunday last week – 113,700 adults aged 18+ Source: Belden Associates, 10/02

  6. Newspaper Readership Weekday - Past 7 Days Rock Island Argus Other Daily Newspaper Any Newspaper Quad-City Times Moline Dispatch Sunday – Past Month Any Newspaper Quad-City Times Moline Dispatch Rock Island Argus Other Sunday Newspaper Base: Adults in Scott & Rock Island Counties Source: Belden Associates, 10/02

  7. Advertising Effectiveness In a Typical Month, Half of Quad-City Adults Go Shopping or Make a Purchase as a Result of Seeing Advertising in the Quad-City Times. Actions Taken as a Result of Seeing Quad-City Times Advertising: Past 30 Days # of Adults 145,400 124,000 90,700 79,600 79,300 41,800 34,500 33,100 24,400 22,100 Base: Adults in Scott & Rock Island Counties Source: Belden Associates, 10/02

  8. Weekly Reach & Impressions The Quad-City Times Delivers 61% of the Adults in Scott and Rock Island Counties and 679,000 Impressions in a Week. Quad-City adults read approximately 5 issues of the Quad-City Times during a typical week. Base: Adults in Scott & Rock Island Counties Source: Belden Associates, 10/02

  9. The Power of Two • We’re not suggesting you stop advertising on television • We’re not asking you to increase your advertising budget • We’re going to show you how the Quad-City Times can enhance your reach and results

  10. Reach & Frequency • Reach • How many different people see an advertisement • Frequency • How often these people see the ad • GRPs = Reach (in %) x Frequency

  11. Sample 8 Week TV Schedule –KWQC Ch. 6 TV DAYPARTS # SPOTS # GRPs GRPs By Daypart % Early morning/Daytime 8 49 22% Daytime/Early Fringe 9 51 22% Fringe/E News/E Prime 3 53 23% Late News 3 78 34% Grand Total: 23 231 100% Total Budget - $10,000 Total GRPs - 231 Total Reach - 61.3% Avg. Frequency - 3.8 Cost per Thousand Reached - $70.32 Source: Belden Associates, 10/02

  12. Proposed Budget for Quad-City Times • Reduce TV budget by 30% • From $10,000 to $7,000 • Replace with Quad-City Times advertising • Proposed budget • $3,000 • Publish • Four – 10 inch ads – Sunday non-Main insertions • Four – 10 inch ads – Saturday non-Main insertions • Eight – 10 inch ads – Wed. & Thurs. pick ups

  13. Proposed Budget for Quad-City Times • What is the Effect?

  14. TV Only 23 231 61.3 4.1 $ 70.32 $10,000 The Power of TwoTV Only vs. TV + Newspaper Element # Messages GRPs % Reach Freq. Cost per Budget Thousand $ TV Element17 164 57.1 2.9 $52.88 $ 7,000 Newspaper 16 682 68.0 10.0 $19.03 $ 3,002 Grand Total: 33 845 84.5 10.0 $51.04 $ 10,002 More GRPs Greater Reach Higher Frequency Lower Cost per Thousand No Increase In Budget! The “Power of Two” Delivers: Source: Belden Associates, 10/02

  15. Quintiles GRP’s 379 197 121 71 30 800 Source: New York DMA data; Media Mix software

  16. Demographic Comparisons Television Viewer Time Newspaper Reader Quintile 1 Quintile 5 Quintile 1 Quintile 5 Highest Lowest Highest Lowest Income Levels $100,000 + HHI 202 66 96 46 $75,000 - $99,999 HHI 82 95 139 63 $60,000 + HHI 79 94 153 61 $50,000 + HHI 83 92 147 65 $40,000 + HHI 87 91 134 69 $30,000 + HHI 88 93 125 75 $20,000 - $29,999 HHI 119 97 75 116 Source - Simmons 1998 Quintile Analysis • Interpretation • A media audience is a mixture of heavy users to light users. • Generally, as television viewing increases, income decreases. • Conversely, as newspaper reading increases, income increases. • Therefore, adding a newspaper audience to a reduced television buy will deliver more people financially able to consider the purchase of goods and services.

  17. Summary • Even the best executed spot TV schedule provides incomplete reach • Reduction in spot TV to fund newspapers has little impact on TV reach or frequency • Newspapers complement TV by reaching light viewers of TV • Newspapers, when combined withTV, will repeatedly reach your most important prospects

  18. Quad-City Times vs. All Radio Stations – Reach Comparisons You would need to buy 16 spots on each of the 16 radio stations during the 6 – 10 am time frame to equal the reach you get with ONE ad in the daily Quad-City Times … ALL Individual Radio Stations in Quad City Market 16 Spots/Station 256 TOTAL SPOTS in 6-10 am Quad-City Times 1 Daily Ad Reach 94,600 101,900 Percent Reach 41% 44% …and that same radio buy is less than the reach you get with ONE Sunday ad in the Quad-City Times! ALL Individual Radio Stations on Previous Graph 16 Spots/Station 256 TOTAL SPOTS in 6-10 am Quad-City Times 1 Sunday Ad Reach 113,700 101,900 Percent Reach 49% 44% Base: Adults in Scott & Rock Island Counties Source: Belden Associates, 10/02

  19. ThankYou!

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