Spend Methodology

Since the creation of AdSphere, one of the biggest challenges has been how to provide insights into spend. We’ve heard from many that disclosure of remnant direct-response (DR) rates would hurt the industry. We listened and searched for a solution. Initially, DRMetrix created its spend index methodology as a way for users to understand spend level differences between brands and advertisers without divulging remnant DR rates. However, the spend index came with many shortcomings. To address these issues, DRMetrix has recently rolled out a more transparent and transformative solution.

DRMetrix has partnered with numerous agencies, and third party aggregators of spend data, to create the industry's first rate database based on the averages of what brand-direct campaigns are paying for network daypart inventory.

Major media holding companies, placing brand-direct campaigns, represent the vast majority of the business. In 2018, over 76.7% of projected spend dollars were attributed to brand-direct campaigns. Understanding this, DRMetrix has designed its new rate metrics to provide the industry with a more realistic understanding of the size of the direct-to-consumer marketplace which includes brand-direct as well as traditional direct-response campaigns. DRMetrix has also collaborated with leading long form agencies and advertisers to build a rate database for 28.5 minute infomercials. In developing its new approach, DRMetrix’s goal has been to provide directionally accurate insights that represent the average of what brand-direct campaigns are paying for network rotation-of-schedule (ROS) daypart inventory. To clarify, DRMetrix is not using brand rates nor are we using remnant DR rates.

Projected Rates vs. Actuals
Rates shown in AdSphere for the current period are conservatively projected using trends from the previous 5 quarters. After the end of each quarter, within 6-7 weeks, projected rates are then replaced with actuals. It takes this amount of time for rate data to be collected from agencies and properly audited. DRMetrix will post on the login page of AdSphere when prior quarter rates are updated.

Accordingly, the announcement of yearly AdSphere Awards will take place after Q4 rates are updated within 6-7 weeks of year end.

On networks that are unrated by Nielsen, that don’t have brand-direct activity, DRMetrix will use data collected from various agency partners to project media valuation. The delta that exists between remnant DR rates and brand-direct rates on many networks may not exist on unrated networks.

Calculating DPI Valuation
DRMetrix studies the average discount that agencies are paying between national and DPI breaks by creative duration. The brand-direct national rate average is then discounted accordingly. On networks unrated by Nielsen, DRMetrix will use data collected from various agency partners to project DPI valuations. To learn more about DPI ad break inventory, please click here.

How to Provide Feedback to DRMetrix
As with any new rate database, we expect that some anomalies will exist in the data where certain network ROS dayparts may be over or under weighted. We ask our community for feedback so that we may improve the data over time. To help expose anomalies, we are providing our users with an quick and easy way to provide feedback. From the network dropdown menu on the AdSphere home page, or from any of the airing detail network pages, please look for the new “rate review” icon. When you click on this icon, it will pop up a Network Rate Review form where you may provide feedback!