[MUSIC] Okay, in this section we're going to deal with a very difficult question. Which is, what is the best media to communicate the right messages to the specific target audiences at its different points for the customer majority in order to be able to achieve the objectives that we have setup in step 1 of our framework? One convenient loop to look at is where are people spending time these days and where are companies spending money? As you can see in this picture, this is a chart that shows where people spend time per day with major media. The two large chunks happens to be digital, on their laptop computers, tablets or phones, and in front of another screen, which is TV. TV and digital combined account for over 80% of where the majority of people spend their time with media. So how is this related to where the companies are spending money? We can look at a picture from two years ago and one predicted for next year. As you can see, television is still by far the biggest media where companies are spending money, it's still considered to be the best media for reaching mass audiences, such as to gain product awareness or service awareness. But as you can see, digital is growing. Combined, desktop Internet and mobile Internet, which used to account for, roughly speaking in the world, about 25% of the company spending, is predicted to move to closer to 30% of the spending by the year 2017. Naturally, as one would expect, eventually, the percentage share of media spent, and the percentage spent, should eventually converge, as you can see for the case of television. So since television and digital media outlets are the two most prominent media outlets of where companies are spending their money. Let's look at a couple of indicators of how companies transact in these different media outlets. First of all, let's start with television. The unit of measurement for television and for other massive media outlets typically is the gross rating point. A gross rating point combines two different concepts. One is what percentage of the target audience is actually reached? And also, what is the frequency of the impacts during this specific campaign, right? So here you have the formula, 100 times the percentage reach times the number of average frequency of impacts, right? So, for example if 50% of the audience has been reached with an average of three impacts during a particular campaign, that campaign would have gotten you 150 GRP's, clear? The next category of spend is search engine marketing, where the major unit is cost per click. The cost per click that you will pay in any search engine depends amongst other things on the website quality score. What is a Quality Score? The Quality Score is a number that will be assigned by the search engine to your website or to your mobile site. It will be affected by several things. First of all, how popular is your site? In essence, that will impact the click-through rate, which is the number of clients divided by the overall number of impressions that you have received. It would also be dependent upon the quality of your landing page, your page architecture, and also what other sites referred or had linked to your particular site. And finally, it will be highly dependent on the level of relevance of the different keywords that consumers are looking for and the kind of content or how close the content that you're providing is to those specific keywords. The next category of spending is Display. Display is measure as a cost per thousand impressions. But there are also other measures. Some people are able to transact for example on cost per conversion, or sales, cost per leads or cost per achieving some other kind of, for example, action such as filling up a form or signing up to receive a newsletter or an email and so forth and so on. These are some of the important metrics that you ought to keep in mind since they represent more than 80% of where the money is spent on media these days. [MUSIC]
