• by Wayne Friedman , May 14, 2008

As ABC unveiled a slimmer slate of fall shows during its upfront presentation, it also launched a new research tool for marketers giving advertisers one number--more than just ratings--when comparing networks to each other.

Calling it the Advertising Value Index, ABC analyzes up to 25 different marketing factors, such as income, engagement, education, or whether marketers are looking for a certain percentage of original shows versus reruns. Then, it comes up with a single index number to be used in comparison to other networks.

Mike Shaw, president of advertising sales and marketing for ABC, admits that media-agency tools such as "optimizers" have been around for years, and can do some of this. "But recently, there are a number of new factors, such as engagement [that should be included]," he says. "We want to take a deeper dive. Not one marketing dollar can be wasted [in this market]."

For example, he notes, across the 18-49 demo, examining five factors--penetration of stations' top 10 markets, viewers with household income of $100,000-plus, professional head of household, viewer engagement and average rating--ABC tallies a 174 index, versus a 159 for CBS, 155 for NBC, 142 for Fox, 113 for TBS and 98 for Discovery Channel.

Shaw notes that engagement is an increasingly valuable marketing factor by advertisers--which companies like IAG Research measure. Right now, he estimates 25 broadcast and cable networks get some form of engagement data. "All advertising is not the same," he says. "A GRP [gross rating points] is not a GRP."

Lyle Schwartz, managing partner and director of broadcast research and marketplace analysis for GroupM, says marketers amass some of this information now. For instance, through Nielsen, marketers can determine what percentage of shows or networks are in "A" or "B" counties--and then come up with a value.

"I'd be interested to see if they have any new information that we don't have," says Schwartz.

During ABC's upfront presentation to advertisers, Shaw said: "Every network should be ranked this way. Then you decide how much money to invest. It's evolutionary, not revolutionary," he adds. "It's an additional tool. It creates a better advertising opportunity."