Current Issue Summary
Dec 2020 (Vol. 60, Issue 4):

Effectiveness and Efficiency of TV’s Brand-Building Power: A Historical Review — Why the Persuasion Rating Point (PRP) Is a More Accurate Metric than the GRP
Investigations by Frank Findley (Marketing Accounting Standards Board), Kelly Johnson (The Walt Disney Co.), Doug Crang (MSW Research) and David Stewart (Loyola Marymount University in Los Angeles) reinforce that television advertising has retained much of its historic power, despite potential attention decline from channel fragmentation, time-shifting/ad skipping and simultaneous use of devices.

After studying more than 7,500 campaigns, the authors found that “the 30-second television advertising format, when delivered via a quality exposure, is as effective today as in the 1980s.”

They also found that—due to the proliferation of channels, viewers accessing content on multiple devices, and time shifting—“it now takes approximately 25 percent more gross rating points to deliver the same power to market as it did in the 1980s.” And, because the number of U.S. TV households has increased by 45 percent since the 1980s, each “rating point now represents more households, thereby effectively mitigating the decline in absolute terms.”

Among the implications:

• The use of “persuasion rating points” has the potential for market-penetration analysis, given the growth of cross-platform optimization.
• “As cross-media gross rating points become more readily available, persuasion rating points will be calculable for a brand’s entire media portfolio”—a potential tool in fine-tuning cross-platform profitability.

 

Read the full article here.