Ch. 4. Basic Measurements and Calculations

1. Ch. 4. Basic Measurements and Calculations Highlights: Method of Measurement Name of a company or organization that presents the measurement data

2. I. Audience Measurement for each medium • National TV: • people’s meter (w/ 5,000 homes) • Nielsen Media Research • Who, what, how long, when • Local TV: • Diary in all 210 DMAs (Designated Market Areas, “TV markets”) • Diary + meter in top 53 DMAs • Arbitron and Nielsen • DMAs: a group of counties that get the majority of their TV viewing from the same home market. (e.g., Baltimore DMA)

3. Radio: • Diary in 270 radio markets • Arbitron • Magazines • Recent-reading techniques w/ in-person interview and a long questionnaire about their product use • Mediamark Research Inc. (MRI) • Newspapers • Yesterday reading (“Which NP did you read yesterday?” --- typically use circulation figures) • ABC: Audit Bureau of Circulation • Audits and reports the circulation of various publications

4. Internet • Use national sample of 60,000 respondents • Measure the number of visitors, how long people stay in each page, how far they go, how many times they return • Nielsen/NetRatings • Out-of-Home • the number of cars passing each billboard on the average day (“daily circulation”) • Traffic Audit Bureau

5. II. Various Concepts of Audience Measurements • Actual vs. Potential audience • Actual: people who actually used a medium • Potential: people who have an opportunity to be exposed to a medium or have access to a medium • Circulation figures? • Measure “Vehicle exposure”: the audience for the media vehicles that carry the ads •  not measuring the audience who are exposed to ads • Audience Accumulation: • Build of total audience over time (usually a month, 4 weeks) • Audience members are counted only once (“reach”).

6. II. Various Concepts of Audience Measurements(Continued) • Magazine Audience Accumulations (3 ways) • Successive issues of the same magazine (e.g. ?) • Different magazines during the same month (e.g., ?) • Pass-along audience for one issue (e.g., ?) • Broadcasting Audience Accumulation • Successive airings of the same program within a four-week period (e.g.?) • Airing of different programs within the same four-week period (e.g. ?)

7. Broadcasting Ratings • represents an estimate of the audience that has viewed a program or has tuned in to a program during a specific time period • Percentage of TV households viewed a particular TV show or radio program • Number of TV households watching a show / total TV households in the U.S. x 100 • HUT (Households using Television) • The total percentage of homes in a market that hare watching television at a given point • Number of HUT will be the same throughout a day?

8. Share:The percentage of HUT (TV using homes) tuned to a particular program • more accurate picture for TV viewing audience data? • rating is the major criteria that the advertising and broadcasting industries use in most cases. • Example:There are 10, 000 TV households. Out of 10,000, 8,000 households turned on their TV sets. 2,000 households watched “Desperate H” on Sunday. • Rating for ER? • HUT? • Share?

9. “Coverage” • Number of prospects delivered by a given medium. • Expressed as a percentage of a market population reached by a given medium • problematic, and confusing term since “coverage” means different things for different media forms. • See Exhibit 4-2 p. 70-71. • Magazine • The number of prospects who read a publication divided by the size of a target market • Target market: women aged 35-49 (25 million) • Readers of Magazine A (2.5 million) • Magazine A’s coverage will be 2.5/25x100=10%

10. High coverage vs. low composition: can be waste of $ • (p. 72, Exhibit 4-3) • Magazine Example: 100 college students preparing graduate schools • Towson Univ: 65 college students (high coverage) • Only 10 students are interested in graduate studies (low composition) • Diagram on p. 73, Exhibit 4-4: • Newspaper • Number of circulation figures as a percentage of the number of households in an area. • Newspaper coverage represents potential audience than actual exposure (readers). • NP coverage level should be at least 50% in local market for media planning.

11. Coverage (continued) • Local TV and Radio • The number of homes with radio/TV sets within the signal area of a given station. • All households that can receive a broadcast signal are NOT necessarily tuned to a specific radio or TV station. • Exhibit 4-5, p. 75. • Network TV coverage: • Not that important since “rating” is a major criteria. • Cable TV coverage: • a percentage of U.S. households that can receive a cable network by any means. • As of Jan. 2002, about 84% of all homes could receive cable channels.

12. Coverage (continued) • Internet Coverage: • All members of U.S. households that have access to the Internet at home, work, or college. • Out-of-Home Media Coverage: • percentage of the population that passes one or more of these out-of-home media in a given period of time. • Exhibit 4-7 (p. 77) • 100 showing: giving everybody in a target market a chance to see the ad. However, this doesn’t mean that every single person in a market viewed the ad. GRP is a duplicated number. • “coverage exercise” -- handout