Spend Index™ Q&A

Q:  Why does DRMetrix use a Spend Index™ instead of estimated dollars?
A:  Because DRTV advertisers buy inventory at remnant rates there is a sensitivity in the marketplace about divulging real DR rates. DRMetrix is working to build a platform for the entire industry that can bring value to all stakeholders in a positive way. We are working with networks, advertisers, and agencies to find the right balance to make all stakeholders happy. Using the Spend Index™ is one way we can achieve these goals.

Q:  What is the Spend Index™?
A:  The Spend Index™ provides a way to understand the projected media valuation "difference" between ranking positions. For example, if the first ranking position has a Spend Index value of "100" and the second ranking position has a value of "30", this means that the second ranking position's schedule valuation is only 30% of the first ranking position's. Said another way, the schedule in the first ranking position has a projected valuation more than 3 times that of the second ranking position!

Q:  How is the Spend Index™ calculated?
A:  DRMetrix works with numerous advertising agencies that provide weekly post log rates for different networks, dayparts, spots lengths, as well as for both national and local breaks on the networks. These spot valuations are averaged across multiple agencies so that an industry average monetary value can be assigned each week to airings detected by DRMetrix. Once the valuation of each schedule is projected for any ranking report, the ranking position and Spend Index™ scores are assigned.

Q:  As an advertiser, I know I'm spending more money on one campaign vs another but sometimes the spend index™ doesn't reflect that reality. Why doesn't the Spend Index™ correlate more closely to the actual money I'm spending?
A:  The Spend Index™ is based on the "estimated valuation" of the schedule not what was paid for the schedule. There are numerous reasons why the projected valuation can vary from the actual cost such as make goods, per inquiry clearances, fire sales, different agencies doing the buying, etc. DRMetrix uses the same media valuations across all schedules down to the network/daypart combination for both local and national spot valuations. If you are having difficulty understanding why a certain schedule was awarded a particular Spend Index™ score in comparison to any other schedule, we recommend using AdSphere to export summary reports of both schedules. Ask any DR agency to apply their rates to both campaigns for each network/daypart combination being careful to apply correct rates for national and local clearances. Make sure your agency applies regular rates for all $0 make goods, per inquiry clearances, etc. This is a similar process to how schedule valuations are calculated in AdSphere. If after analyzing the data you are not satisfied, or have additional questions, please contact DRMetrix.

Q:  I know I'm spending more than the competition. They can't possibly be spending more!
A:  We recommend following the above approach and contacting DRMetrix should you have any additional questions.

Q:  How do I know AdSphere is capturing all of my airings to give the correct Spend Index™ score to my campaign?
A:  AdSphere Spend Index™ rankings are based on monitoring of select national cable networks. The list of 100+ national cable networks monitored by DRMetrix are available for review and download. Please ask your agency to export an airings detail report out of AdSphere™ being careful to select either "calendar" or "broadcast" time format as required to easily reconcile against post logs. Your agency can compare the airings on AdSphere monitored networks to your post logs to insure the airing data inside of AdSphere is accurate. If your agency finds any discrepancies, please have them notify DRMetrix within 10 days of airing. DRMetrix is able to go back and verify against the network feeds for 10 days to troubleshoot any issues. Post logs are not 100% accurate. Please do not use prelogs when auditing AdSphere data as they are highly inaccurate.

Q:  How can I increase my Spend Index™ rank?
A:  Buying more television time might seem like the obvious response but this is really a complicated question which speaks to media strategy, negotiation, and execution. For example, some will add additional value to their schedule by negotiating Per Inquiry campaigns with various Cable Networks in addition to cash buys. Others will negotiate bonus spots or take advantage of fire sale discounts. Really, everything and anything goes so there is no easy answer to this question. Getting the most bang for your advertising dollar is something savvy DR agencies and advertisers contend with each and every day.

Q:  As a retailer, what is the best way for me to use the Spend Index™
A:  For a limited time, we are offering all retailers complimentary access to AdSphere™. Just click here to request a free trial and to setup a time to speak with us. Because there are so many ways to generate ranking reports from AdSphere™, it is important that retailers take the time to understand how the AdSphere reporting system works. For example, one can filter a ranking report by industry classification as well as by category which will produce different and sometimes misleading results. If you want to understand the spend levels of all AS SEEN ON TV retail brands in comparison to one another, we recommend running a larger report for "short form retail products" or "long form retail products" with all industry categories selected. We also recommend that you run reports out of AdSphere™ to see the Ranking Position and Spend Index™ for brands over a multi-week, month, or quarterly basis.

Q:  Does DRMetrix monitor all television stations?
A:  DRMetrix currently monitors 100+ of the top national cable networks. Our Spend Index™ and Ranking assignments are based solely on airings detected on select national cable networks. These are the networks which have the largest audience reach making them critical for driving retail success. It would be difficult to drive sufficient awareness for mainstream AS SEEN ON TV brands without sufficient exposure on the Top 100 networks. That said, DRMetrix is working to add more of the mid-small size unrated networks in 2017. For competitive media research purposes, the largest company in the space, Nielsen, currently monitors around 120 networks while Kantar monitors around 80. Since DRMetrix is focusing on the DRTV industry, we will begin to include more unrated National Networks into 2017 which will make DRMetrix the largest monitoring company of national cable in the television industry.

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