Press Release

Introducing Canonical Expansion Model
to Newspaper and OOH Data Analysis Applications

January 28, 2002

Video Research Ltd. (VR), Japan's leading media and marketing research company, announced today that it will introduce a canonical expansion model to its data tabulation/analysis applications for newspaper, transit, and OOH (out of home) advertising media in March 2002.

As the media environment undergoes drastic changes, the need to maximize advertising effectiveness through effective ad planning has become greater than ever. Against this backdrop, Video Research has been developing new estimation models of higher accuracy. The canonical expansion model, one such estimation models, allows users to estimate reach/frequency in a given media-mix situation. Such estimations have hitherto been an almost impossible task, and so the new model provides far more accurate vehicle projections than existing ones.

Video Research expects about 1 billion yen in sales from its canonical expansion model-based data analysis applications: @J-READ (Comprehensive Newspaper Survey), the Digital Transit Media Report, and the Digital Machi Media Report.

The Canonical Expansion Model

1) The canonical expansion model is a reach/frequency estimation model developed by Dr. Peter J. Danaher.
2) Source: A Canonical Expansion Model for Multivariate Media Exposure Distributions, Journal of Marketing Research, Vol. 28 (August) 1991, pp.361-367.
3) The model produces more accurate projections than existing models (based on the results of comparative research on 1,000 cases)
4)

Users can estimate reach and frequency in a media-mix situation (estimation is available for either each of or a combination of TV, radio, newspaper, magazine and transit advertising).

  • Users can estimate media duplications.
  • The model has high data-source flexibility, allowing use of data obtained from different sources such as the PM TV ratings research, the Tokyo metropolitan area radio audience research, and the comprehensive magazine survey.
5) The model is already in practical use in the U.S., Hong Kong and Malaysia.
6) The model also serves as an optimizer to realize the optimal allocation of advertising budget.
7) Video Research plans to release the following canonical expansion model-based data tabulation/analysis applications in March 2002: @J-READ (newspapers), the Digital Transit Media Report, and the Digital Machi Media Report ("Town Media Report").

Frequency distribution estimation for a newspaper advertising campaign

* Advertisements were placed eight times in paper A, two times in paper B, and four times in paper C.
Source: Video Research Media Mix Frequency Test

Dr. Peter J. Danaher

Dr. Peter J. Danaher is a professor of marketing at the School of Business, University of Auckland, New Zealand. He was awarded a PhD in statistics from Florida State University.
Dr. Danaher's main research areas are media models, projection models and customer satisfaction models. He is a co-author of Advanced Media Planning published in1998 by Kluwer Academic and is also a frequent contributor to academic journals.