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China: Online video ready to take a slice of TV budgets with iGRPs

5 January, 2011

BEIJING — Baidu’s online video site, is beginning to take on its TV competitors and clients by using the same currency — iGRPs (short for Internet Gross Rating Points). This is so that they can catch-up the ongoing changes and new rules for online media planning in China.

The recently published Q3 figures show that in the Chinese online video market, revenue is booming to USD$ 1.39 billion. As an impressive and competitive campaign vehicle, online video has an unparalleled opportunity to be a counterpart to TV. iGRPs make this possible.

The new industry buzz word and solution, iGRP which plays off the classic TV metric, is an acronym being used in advertising to measure the size of the target audience reached by a digital campaign in a way that is actually comparable to TV GRPs. Brand owners are thirsty for a general currency to evaluate their online investment.

In 2010, P&G, L’Oreal, Volkswagen and other world leading companies made use of AdMonitor, one of the most popular iGRP systems in China, as their online campaign evaluation system, to optimize online investment in China.

With the drive of advertisers, online media and ad networks can’t help moving forward. Hoping to speed the evaluation of ad dollars from TV to online video, ad network hdtMEDIA are partnering with market research giant Millward Brown to leverage the new metric (iGRPs using AdMonitor) in the Chinese market to make it easier to compare audiences between the two media.

"That's the beauty of the size and breadth of our ad network," said Clarence Zheng, CEO of hdtMEDIA, “By offering views of digital currency that have long been the standard in the TV business, any buyer will be more confident about allocating budget to the robust platform where the most valuable attention can be found. ”

Millward Brown has recently concluded a full year’s analysis looking at iGRPs using AdMonitor for hdtMEDIA, one of the biggest online ad networks in China.

“We’re dedicated to making it easier for media agencies and brand owners to evaluate and compare online video ad buys to TV buys. Online video advertising is as a rule purchased on the basis of unique visitors and impressions. The iGRP movement is a step toward creating a common industry standard.” said Zhu Wei, founder and CEO of Moment Systems, the technical service provider of AdMonitor.

GRP, the TV metric that media planners are more familiar with, has indeed been transferred to the online space. Developing an iGRP for a particular buy is actually a very similar and simple calculation; the obstacle is getting the necessary online data to predict reach and frequency levels. With the common currency, planners are now able to really allocate the budget based on client campaign objectives online, rather just use the money left over.

Two kinds of essential online data are:
A) Basic online metrics – impressions, clicks, click-through-rate and Unique Visitors.
B) Objective based performance – campaign target audience reach and frequency by publisher by ad placement

About AdMonitor
AdMonitor--the internet GRP measurement tool designed by Millward Brown and Moment Systems-- a cutting edge online advertising evaluation service. Many famous brands including P&G, DHL, Volkswagen, are making use of AdMonitor to optimize their ROI of online campaign in China.

About Millward Brown
Millward Brown is one of the world's leading research agencies and is expert in effective advertising, marketing communications, media and brand equity research. Through the use of an integrated suite of validated research solutions — both qualitative and quantitative — Millward Brown helps clients build strong brands and services. Millward Brown has more than 78 offices in 51 countries. Additional practices include Millward Brown's Global Media Practice (media effectiveness unit), The Neuroscience Practice (using neuroscience to enhance traditional research techniques), Millward Brown Optimor (focused on helping clients maximize the returns on their brand and marketing investments), Dynamic Logic (the world leader in digital marketing effectiveness) and Firefly (a global qualitative research business). Millward Brown is part of Kantar, WPP's insight, information and consultancy group.

About Moment Systems
Moment Systems is a high-tech innovation company focusing on online audience ratings, media and advertising measurement through new technologies, including natural language processing, artificial intelligence and cloud computing to improve the ROI of digital communications.

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