1. Follow up to AD Report:
How to maximize the number of spots among
the BEST Channels by Daypart

2. 2
Goal
• A previous report detailed an analytic process that identified dominant PRIZM clusters
that were used to develop a multivariate target criteria that combined several key dimensions
into a single score that calculated the propensity for funded 1st loans.
• Using several estimates of cost-per-spot, a Linear Programming solution was setup.
• Drilling down on the Early Morning day part, we compare several LP solutions against the
actual buy for Q1-2007.
Results indicate that we can calculate a solution that will select MORE spots within the SAME
budget and that these selected channels include stations not previously bought.
While the last statement is fact, this last conclusion need testing, as we further expect
that the suggested media plan will yield a more qualified fund 1st applicant as a direct result
of the building processes detailed in the previous report called AD report.

3. 3
Early Morning

4. 4
Costs per spot EM 15 second spots.
Using recent data for Q1 2007
that included competitive Ads, an
average cost per spot was calculated
for each condition by daypart.
This information is used to access all
previous purchased AND new Ads.
To minimize the effect of the a group
negotiated rate, the competitive rate
was used. This allows a fair evaluation
of all spots.
Four Master Channel files were made:
Daypart Channel Competitive Competitive Competitive Ditech Ditech Ditech Cost15
Total Cost # of Spots Mean Total Cost # of Spots Mean
EM AEN $5,117 19 $269 $68,696 311 $221 269$
EM AMC $896 1 $896 $34,147 83 $411 896$
EM APL $8,430 10 $843 843$
EM BBCA $10,706 47 $228 228$
EM BIO $848 64 $13 13$
EM BRVO $1,810 5 $362 $16,869 52 $324 362$
EM CMT $8,487 41 $207 207$
EM CNBC $6,075 14 $434 $100,232 167 $600 434$
EM CNN $83,369 45 $1,853 $651,520 300 $2,172 1,853$
EM COUR $729 3 $243 $243 1 $243 243$
EM DHLT $521 6 $87 87$
EM DISC $7,320 9 $813 $1,064 2 $532 813$
EM DTMS $232 3 $77 77$
EM ESP2 $945 5 $189 $4,074 3 $1,358 189$
EM ESPN $18,383 19 $968 968$
EM FOOD $55,251 69 $801 801$
EM FOXN $9,094 6 $1,516 $335,809 219 $1,533 1,516$
EM FUSE $3,298 104 $32 32$
EM FX $42,377 121 $350 350$
EM G4 $150 4 $38 38$
EM GAC $9,035 75 $120 120$
EM GOLF $1,612 8 $202 202$
EM GSN $5,209 7 $744 744$
EM HALL $21,006 44 $477 477$
EM HGTV $217,183 343 $633 633$
EM HI $6 3 $2 2$
EM HIST $3,936 17 $232 $49,479 219 $226 232$
EM HLN $38,854 46 $845 $220,015 246 $894 845$
EM MIL $236 4 $59 $1,408 18 $78 59$
EM MSNB $1,664 2 $832 $168,381 191 $882 832$
EM MTV $19,546 29 $674 674$
EM MTV2 $1,240 17 $73 73$
EM NFLN $1,965 9 $218 218$
EM NGC $605 7 $86 86$
EM OXYG $6,726 17 $396 396$
EM SCFI $1,062 7 $152 $9,998 117 $85 152$
EM SOAP $9,797 22 $445 $27,228 53 $514 445$
EM SPD $201 3 $67 67$
EM SPK $306 1 $306 $15,576 30 $519 306$
EM STYL $9,910 53 $187 187$
EM TBSC $561 1 $561 $78,485 151 $520 561$
EM TNT $21,018 36 $584 584$
EM TRAV $1,029 15 $69 69$
EM TVL $2,079 9 $231 $40,428 165 $245 231$
EM TWC $13,520 29 $466 466$
EM USA $8,499 15 $567 $2,115 5 $423 567$
EM VS $2,709 35 $77 77$
Includes Proper Aliases for each Channel

5. 5
Development of an objective function
Target_ Target33_ Total_ DEAD_ Funded_ Total_ Total_
Network Dominance Pull Cancels Lead First All Target Cost15
BBCA -0.6996 2.4974 -1.4157 -2.3469 0.0106 5.5709 2.5080 $228
FNC 3.7836 0.9056 -0.3449 -0.2798 -0.2783 5.0355 0.6273 $1,516
STYL -0.6230 0.8755 -1.0039 -0.5938 1.3264 3.1765 2.2018 $187
Soap -0.3003 0.1781 -2.7184 2.3053 2.6371 2.9279 2.8151 $445
HI -0.7774 0.4987 -1.4164 -1.4686 0.3069 2.9132 0.8056 $2
USA 2.6623 -0.7676 -0.3877 -0.1520 0.0622 2.4965 -0.7054 $567
Court -0.4458 1.4198 1.2229 -0.7353 1.8952 2.3816 3.3150 $243
TNT 2.2364 -0.9787 0.3564 -0.5048 0.9278 2.3339 -0.0509 $584
TBS 0.8172 0.3531 0.1635 -0.2143 0.7997 2.0209 1.1528 $561
CNN 1.0321 0.3687 -0.0744 -0.8747 -0.3904 1.9594 -0.0217 $1,853
MSNBC 1.6625 0.8647 0.4075 0.3100 0.0585 1.8681 0.9232 $832
ESPN 0.9762 1.0575 -0.1068 0.4986 -0.0349 1.6069 1.0226 $968
BIO -0.6460 1.0095 -1.1971 -0.4225 -0.5518 1.4312 0.4577 $13
DTMS -0.5739 -1.0795 -0.9278 -1.3272 0.7735 1.3751 -0.3061 $77
A&E 0.5087 -0.0058 -1.1047 -0.3950 -0.7004 1.3023 -0.7062 $269
MTV2 -0.6465 0.3305 -0.2575 0.0970 1.0322 0.8766 1.3627 $73
NGC -0.6519 0.5893 1.5367 -0.7628 1.4796 0.6431 2.0689 $86
HGTV 0.2954 0.9482 -0.2541 1.0241 -0.3324 0.1412 0.6158 $633
HLN -0.0170 -1.1274 0.0914 -1.1451 0.1891 0.0984 -0.9384 $845
A previous report described the use of Total All,
( a multivariate composite that discounts target
definition by Cancels and Dead Leads), within
a specific daypart (this example is EM)
Appending the 15 Second Competitive Rate,
the objective function of an LP was defined as
Maximizing the Total All score
If we assume a -1 call to 1 spot- base, the Total
All score can be used as a multiplier that is
expected to improve the funded 1st closing
rate per call. (BBCA will draw 5 times the mean)
Note we can also substitute the Total Target
definition and recalibrate to focus on Total
Mortgage Market.

6. 6
Development of Constraints I
• Current Daypart Cost Distribution of EM Q1 2007 included Length of Spot
• 19,266 15-second spots costing $10,804,934
• 10,506 30-second spots costing $ 9,111,289
• EM – Q1 2007 had
• 3,468 15-second spots costing $2,265,383
• 1,957 30-second spots costing $1,440,090
• Previous Report suggests a redistribution increasing PR by reducing other
day parts
• We discounted the previous by a 49% to follow this recommendation
• New EM spend is now constrained to
• 2,104 15-second spots costing $1,163,305
• 1,337 30-second spots costing $ 739,505

7. 7
Total Budgetary SHIFT by Day part
Total Spend Q1 2007 was
$19,916,223 for 29,772 spots.
A shift in day part is suggested
that will result in more PR.
Adjustment factors were calculated
that redistribute dollars and counts to
conform to the suggested profile.
Note : This example suggests no ON
and LN with a 2.4 + fold increase in PR.
New solutions MUST be at the adjusted
budget total in terms of dollars AND MUST
be at the previous number of spots or
GREATER !
Q1-2007 Suggested Adjustment Original Suggested Original # Adjusted
Factor Spend Spend Spots # Spots
EM 18.5 9.5 0.51 $3,705,473 $1,902,810.46 5,425 3,441
DT 32.0 30.5 0.95 $6,397,218 $6,097,348.41 12,056 12,146
EF 24.5 25.7 1.05 $4,904,117 $5,144,318.65 7,456 8,476
PR 14.0 34.0 2.43 $2,800,298 $6,800,723.71 2,216 6,037
LN 7.9 0.0 0.00 $1,590,586 $0.00 1,370 0
ON 2.8 0.0 0.00 $572,265 $0.00 1,249 0
99.7 99.7 $19,969,957 $19,945,201.23 29,772 30,100
15 19,266 $10,804,934
30 10,506 $9,111,289
29,772 $19,916,223
Original Original Adjusted Adjusted
# Spots $ Cost $ Cost # Spots
EM 15 3,468 2,265,383 61.14% 1,163,305 2,104
EM 30 1,957 1,440,090 38.86% 739,505 1,337
5,425 3,705,473 1,902,810 3,441
DT 15 7,734 3,820,751 59.73% 3,641,653 7,254
DT 30 4,322 2,576,467 40.27% 2,455,695 4,892
12,056 6,397,218 6,097,348 12,146
EF 15 5,074 2,910,105 59.53% 3,062,594 5,046
EF 30 2,382 1,978,074 40.47% 2,081,724 3,430
7,456 4,888,179 5,144,318 8,476
PR 15 1,267 1,115,543 40.16% 2,731,037 2,424
PR 30 949 1,662,339 59.84% 4,069,686 3,613
2,216 2,777,882 6,800,723 6,037
LN 15 817 462,083
LN 30 553 1,120,813
1,370
ON 15 906 231,069
ON 30 343 333,506
1,249

8. 8
Development of Constraints II
• Since the Objective Function ONLY contains those selected channels whose Multivariate
Total All score ranked them high, it was assumed that each should be used at least once a
day (this can be easily adjusted based upon feed back).
•Saturation on a channel within daypart was defined as 1 spot each half- hour
in that daypart (Maximum 8 spots within EM defined as 4 hours 6:00 to 9:59).
(this can be easily adjusted based upon feed back).
•The cost constraint used the competitive rate per channel to set two additional constraints
•The total spend had to be <= then recommended Budget for that daypart and length
•The total spots had to be >= then previous purchased number of spots

9. 9
Previous EM 15 Second Spots and Volume
Channel ditech_Total_cost ditech_Number_of_spots Channel ditech_Total_cost ditech_Number_of_spots
AEN $68,696 311 GSN $5,209 7
AMC $34,147 83 HALL $21,006 44
APL $8,430 10 HGTV $217,183 343
BBCA $10,706 47 HI $6 3
BIO $848 64 HIST $49,479 219
BRVO $16,869 52 HLN $220,015 246
CMT $8,487 41 MIL $1,408 18
CNBC $100,232 167 MSNB $168,381 191
CNN $651,520 300 NFLN $1,965 9
COUR $243 1 OXYG $6,726 17
DHLT $521 6 SCFI $9,998 117
DISC $1,064 2 SOAP $27,228 53
DTMS $232 3 SPK $15,576 30
ESP2 $4,074 3 STYL $9,910 53
FOOD $55,251 69 TBSC $78,485 151
FOXN $335,809 219 TNT $21,018 36
FUSE $3,298 104 TRAV $1,029 15
FX $42,377 121 TVL $40,428 165
G4 $150 4 TWC $13,520 29
GAC $9,035 75 USA $2,115 5
VS $2,709 35
This totals to 3,468 spots costing $2,265,383. The objective of this report is to compare this
list against an profile-optimized list that was further cost-optimized by reach of each channel

10. 10
LP solution for EM 15 second spots
Model:MAX =
5.5 * BBCA + 5.03 * FNC + 3.17 * STYL + 2.92 * SOAP + 2.91 * HI+ 2.49 * USA +
2.38 * Court + 2.33 * TNT + 2.02 * TBS + 1.95 * CNN + 1.86 * MSNBC + 1.60 * ESPN +
1.43 * BIO + 1.37 * DTMS + 1.30 * ANE + .87 * MTV2 + .64 * NGC + .14 * HGTV + .09 * HLN + .02 * GSN ;
BBCA >= 90 ;
FNC >= 90 ;
STYL >=90 ;
……..
BBCA <= 720;
FNC <= 720;
STYL <= 720;
…………..
227 * BBCA + 1515 * FNC + 186 * STYL + 445 * SOAP + 2 * HI + 556 * USA + 243 * Court +
583 * TNT + 561 * TBS + 1852 * CNN+ 832 * MSNBC + 967 * ESPN + 13 * BIO + 77 * DTMS + 269 * ANE
+ 72 * MTV2 + 86 * NGC + 633 * HGTV + 844 * HLN + 744 * GSN <= 1,163,305;
! <= 2265383 – Unadjusted Actual Spend;
BBCA + FNC + STYL + SOAP + HI + USA + Court + TNT + TBS + CNN + MSNBC + ESPN + BIO +
DTMS + ANE + MTV2 + NGC + HGTV + HLN + GSN > = 2,104;
!>= 3468 – Unadjusted Actual Number of Spots;

11. 11
LP solution for EM 15 second spots
Global optimal solution found.
Objective value: 10641.06
Total solver iterations: 1
Variable Value Reduced Cost
BBCA 720.0000 0.000000
FNC 90.00000 0.000000
STYL 90.00000 0.000000
SOAP 90.00000 0.000000
HI 720.0000 0.000000
USA 90.00000 0.000000
COURT 90.00000 0.000000
TNT 90.00000 0.000000
TBS 90.00000 0.000000
CNN 90.00000 0.000000
MSNBC 90.00000 0.000000
ESPN 90.00000 0.000000
BIO 720.0000 0.000000
DTMS 703.1818 0.000000
ANE 90.00000 0.000000
MTV2 90.00000 0.000000
NGC 90.00000 0.000000
HGTV 90.00000 0.000000
HLN 90.00000 0.000000
GSN 90.00000 0.000000

12. 12
LP solution for EM 15 second spots
This solution was bought at a cost of $ 1,163,291 for 4,303 15 second spots
NOTE :
Un Optimized Actual Q1 2007 totals to 3,468 spots costing $2,265,383
We are getting significantly MORE spots for LESS dollars expecting 2.47 calls
per spot (versus 1:1 ) AND expecting a better closing Funded 1st rate.
The same approach was repeated for EM 30 second picks

13. 13
Previous EM 30 Second Spots and Volume
This totals to 1,957 spots costing $1,440,090. As in the EM 15 cost redistribution, these
numbers were discounted to 1,337 spots costing $739,505
Channel ditech_Total_cost ditech_Number_of_spots Channel ditech_Total_cost ditech_Number_of_spots
AEN $27,639 25 GSN $22,032 15
AMC $5,171 7 HALL $19,551 21
APL $32,269 48 HGTV $68,984 19
BBCA $6,200 58 HI $439 82
BIO $1,247 45 HIST $76,280 122
BRVO $11,401 8 HLN $34,509 19
CMDY $4,718 14 LMN $2,890 3
CNBC $26,058 19 MIL $9,608 60
DHLT $19,715 81 MSNB $369,925 209
DSCI $964 4 NFLN $12,523 9
DTMS $270 2 OXYG $459 1
ENN $5,934 73 SCFI $26,601 149
ESCL $4,298 56 SOAP $35,062 32
ESP2 $55,959 51 STYL $50,160 136
ESPN $70,057 27 TBSC $29,777 28
FOXN $144,909 46 TNT $17,652 4
FX $165,454 263 TRAV $18,038 12
G4 $1,916 16 TVL $25,273 47
GAC $15,752 65 VS $20,396 81

14. 14
Costs per spot EM and Objective Function for
30 second spots.
Total_ Only_
Target_ Target33_Total_ DEAD_ Funded_ total_ total_
Network DominancPull Cancels Lead First all target cost30
CNBC 0.2494 0.4252 -1.2375 -2.0985 2.2366 6.2472 2.6618 $901
FNC 4.1900 0.8791 -0.4616 -0.3340 -0.4468 5.4179 0.4324 $3,134
GSN -0.8472 1.8248 -1.6942 -1.8213 0.5479 5.0409 2.3727 $1,452
HGTV 0.2150 1.0366 -0.4705 -0.4267 0.8853 3.0341 1.9219 $2,675
ESPN 1.0319 1.1002 -0.2802 -0.0937 0.3759 2.8819 1.4762 $2,752
MSNBC 1.9316 0.8869 0.3057 -0.2067 0.0881 2.8076 0.9751 $1,682
Soap -0.2057 0.3226 -2.8778 2.8025 2.5459 2.7380 2.8685 $849
USA 3.0236 -0.7968 -0.3206 0.2425 -0.0931 2.2119 -0.8899 $880
Hall -0.3441 0.8634 0.0052 -2.1801 -0.5533 2.1408 0.3101 $939
A&E 0.5963 0.1052 -1.1218 -0.5685 -0.3001 2.0917 -0.1949 $806
CNN 1.2802 0.5920 -0.1769 -0.5468 -0.8749 1.7211 -0.2829 $3,879
VH-1 -0.0270 1.4922 0.8624 -0.6003 0.5097 1.7129 2.0019 $606
BIO -0.6880 1.0626 -1.2469 -0.3705 -0.3244 1.6676 0.7382 $42
DHLT -0.6627 0.0813 -0.3618 -1.0289 0.6212 1.4305 0.7025 $257
Speed -0.5681 0.7087 1.6632 -2.1987 0.5637 1.2398 1.2724 $523
Trav -0.7841 0.5265 0.5612 0.6677 2.4986 1.0121 3.0251 $1,529
ENN -0.5079 0.5649 0.9495 0.3018 1.9340 0.7398 2.4989 $71
BBCA -0.7300 2.5068 -1.4512 0.2042 -2.2870 0.7368 0.2198 $91
ESPN2 0.3851 0.4017 1.5467 -1.5966 -0.1226 0.7142 0.2791 $480
AMC 0.8107 -0.9002 -0.1666 -0.3643 0.0415 0.4829 -0.8586 $835
VS -0.5507 -0.1820 -0.0013 -0.5098 0.6468 0.4252 0.4648 $422
FX 0.0120 -0.0637 -0.0750 -0.5304 -0.4079 0.1459 -0.4716 $921
OXYG -0.6339 -1.0008 -0.4544 0.5063 1.7609 0.0744 0.7601 $857
Life -0.4581 -0.5192 -1.0435 0.1467 0.1283 0.0478 -0.3909 $2,030
Objective FunctionCosts
Daypart Channel Competitive Competitive Competitive Ditech Ditech Ditech Cost30
Total Cost # of Spots Mean Total Cost # of Spots Mean
EM AEN $54,805 68 $806 $27,639 25 $1,106 $806
EM AMC $32,553 39 $835 $5,171 7 $739 $835
EM APL $1,880 4 $470 $32,269 48 $672 $470
EM BBCA $273 3 $91 $6,200 58 $107 $91
EM BET $67,676 32 $2,115 $2,115
EM BIO $42 1 $42 $1,247 45 $28 $42
EM BRVO $12,807 12 $1,067 $11,401 8 $1,425 $1,067
EM CMDY $37,371 41 $911 $4,718 14 $337 $911
EM CMT $2,968 8 $371 $371
EM CNBC $112,622 125 $901 $26,058 19 $1,371 $901
EM CNN $155,157 40 $3,879 $3,879
EM COUR $1,461 3 $487 $487
EM DHLT $25,699 100 $257 $19,715 81 $243 $257
EM DISC $53,888 22 $2,449 $2,449
EM DSCI $53,793 149 $361 $964 4 $241 $361
EM DTMS $270 2 $135 $135
EM ENN $5,179 73 $71 $5,934 73 $81 $71
EM ENT $14,280 14 $1,020 $1,020
EM ESCL $1,020 44 $23 $4,298 56 $77 $23
EM ESP2 $21,606 45 $480 $55,959 51 $1,097 $480
EM ESPN $192,617 70 $2,752 $70,057 27 $2,595 $2,752
EM FAM $11,042 12 $920 $920
EM FOOD $28,935 12 $2,411 $2,411
EM FOXN $560,933 179 $3,134 $144,909 46 $3,150 $3,134
EM FX $69,958 76 $921 $165,454 263 $629 $921
EM G4 $779 11 $71 $1,916 16 $120 $71
EM GAC $2,448 10 $245 $15,752 65 $242 $245

15. 15
LP solution for EM 30 second spots
Model:
MAX = 6.24 * CNBC + 5.41 * FNC + 5.04 * GSN + 3.03 * HGTV + 2.88 * ESPN + 2.80 * MSNBC
+ 2.73 * SOAP + 2.21 * USA + 2.14 * Hall + 2.05 * ANE + 1.72 * CNN + 1.71 * VH-1 + 1.66 * BIO
+ 1.43 * DHLT + 1.23 * Speed + 1.01 * TRAV + .73 * ENN + .73 * BBCA + .71 * ESPN2 + .48 * AMC + .42 * VS
+ .14 * FX + .07 * OXYG + .04 * Life;
CNBC >= 20;
FNC > = 20;
GSN >= 20;…….
CNBC <= 720;
FNC <= 720;
GSN <= 720;…..
900 * CNBC + 3133 * FNC + 1452 * GSN + 2675 * HGTV + 2751 * ESPN + 1682 * MSNBC
+ 849 * SOAP + 879 * USA + 938 * Hall + 805 * ANE + 3878 * CNN + 605 * VH-1 + 42 * BIO
+ 256 * DHLT + 522 * Speed + 1529 * TRAV + 70 * ENN + 91 * BBCA + 480 * ESPN2 + 834 * AMC + 422 * VS
+ 920 * FX + 857 * OXYG + 2030 * Life <= 739;505
! <= 1440090;
CNBC + FNC + GSN + HGTV + ESPN + MSNBC
+ SOAP + USA + Hall + ANE + CNN + VH-1 + BIO
+ DHLT + Speed + TRAV + ENN + BBCA + ESPN2 + AMC + VS
+ FX + OXYG + Life >= 1,337;
! <= 1957;

16. 16
LP solution for EM 30 second spots
Global optimal solution found.
Objective value: 3288.864
Total solver iterations: 1
Variable Value Reduced Cost
CNBC 47.55667 0.000000
FNC 20.00000 0.000000
GSN 20.00000 0.000000
HGTV 20.00000 0.000000
ESPN 20.00000 0.000000
MSNBC 20.00000 0.000000
SOAP 20.00000 0.000000
USA 20.00000 0.000000
HALL 20.00000 0.000000
ANE 20.00000 0.000000
CNN 20.00000 0.000000
VH 21.00000 0.000000
BIO 720.0000 0.000000
DHLT 20.00000 0.000000
SPEED 20.00000 0.000000
TRAV 20.00000 0.000000
ENN 720.0000 0.000000
BBCA 720.0000 0.000000
ESPN2 20.00000 0.000000
AMC 20.00000 0.000000
VS 20.00000 0.000000
FX 20.00000 0.000000
OXYG 20.00000 0.000000
LIFE 20.00000 0.000000
Note : Constraint II
was lowered to 20
per quarter to permit
a feasible solution

17. 17
LP solution for EM 30 second spots
This solution was bought at a cost of $ 740,067 for 2,609 30-second spots
NOTE :
Un Optimized Actual Q1 2007 totals to 1,957 spots costing $ 1,440,090
We are getting significantly MORE spots for LESS dollars expecting 1.26 calls
per spot (versus 1:1 ) AND expecting a better closing Funded 1st rate.
The same approach will be repeated for other day parts if approved.

18. 18
Conclusions on the EM Daypart
• Two new solutions were created that BOTH significantly INCREASE the number of
spots bought over those recently purchased for MORE budget .
This new solutions included new channels and were selected based upon a
Multivariate composite score that sought to maximize Fund 1st applicants.
Combining both the 15 and 30 second suggested buys creates a DOMINANT stake in
BBCA & BIO – in both 15 and 30 second spots
Other strong positions are in ENN for 30 second spots and DTMS for 15 second spots.