Audience Measurement

1. Audience Measurement • Ad costs are traditionally determined by audience sizes • Ad time/space is priced based on number of viewers/readers • When buying ad time/space, key metrics include • Impressions • Rating Points • Share • Reach • Frequency • CPM

2. Television Audience Measurement • Measures and Vocabulary • Share: analogous to market share; refers to the success a program has in attracting viewers • Share = % of the total current viewing audience tuned into a particular program • If there are 1M households watching tv, and 100,000 are watching a program, that program’s share is 10 • Rating: a measure of total eyeballs, therefore interpretation varies with total viewing audience (TVA) • Rating = % of the total potential viewing audience tuned into a particular program • If there are 10M households with access to a television (have a tv in their home) and 100,000 watch a program, that program’s rating is 1

3. Media Selection Procedures Reach Number of Different People Exposed to the Message Frequency Degree of Exposure Repetition Factors to Consider When Selecting Advertising Media Cost Per Thousand Efficiency of Selected Vehicles

4. Reach, Frequency and Media Planning Reach % of the Target Population Exposed At Least Once to the Advertising Message During a Specific Time Frame. Frequency Number of Times the Target Population Is Exposed to the Advertising Message During a Specific Time Frame. Methods Include: Average Frequency Frequency Distribution

5. Combining Reach and Frequency Goals • Reach of an audience is not sufficient measure of an advertising’s schedule’s strength. • For anyone to be considered part of the reached audience, he or she must have been exposed more than once. • This theory combines reach and frequency elements into one factor known as effective frequency.

6. Media planning for a target market • There are two different measures involved: • Gross: Includes all members of a population regardless of their characteristics • Gross Impressions (GIMP): total number of impressions across a total population • Target: Includes only members of a specifically identified target market • Target Impressions (TIMP): total number of impressions within a target population, e.g. impressions by 12-17 year old boys in Scottsdale, AZ • Reach, CPM, Impressions, and Rating Points can be expressed as either Gross or Target. • Assume Gross unless specifically stated to be Target.

7. Audience Measures Used in Media Planning • Gross (Target) Impressions: Total number of exposures, regardless of audience size or makeup • If 1000 people are exposed to an ad 1 time, total impressions is 1000 • If 100 people are exposed to an ad 10 times each, total impressions is 1000 • Gross (Target) Rating Points: (Impressions ÷ Population) × 100 • While it looks like a percentage, it CAN be more than 100. • Reach: Percentage of population exposed at least once • Total Unique Audience ÷ Population • Frequency: Average number of time a person in the reached audience is exposed to the ad • Total impressions ÷ total unique audience • CPM: Cost per thousand impressions • (Ad Cost ÷ Impressions) × 1000 OR • Ad Cost ÷ Impressions (000)

8. Practice Time • Partner Up • Audience Measurement Handout

9. Syndicated AudienceData Collection • Diary: Ask people to keep a diary of what they watch • Meter: records what channel a tv is tuned to • People Meter: Records what channel is being watched as well as who is watching it

10. Syndicated Data Reporting • Nielsen Ratings are the most common • Nielsen Television Index (NTI) for national ratings • Nielsen Station Index (NSI) for local ratings • Nielsen handout shows a typical NTI Report

11. NTI Data • HUT: Households Using Television in millions – stated for each ¼ hour time period • HHLD Audience% & (000): rating for the program & average audience size in thousands of viewers • TA%, AVG.AUD. ½ HR%: Total cumulative audience size as a percentage of population, rating for the ½ hour time period • SHARE AUDIENCE %: Share for the program and half hour time period • AVG. AUD. BY ¼ HR %: rating for the ¼ hour time period

12. Radio Audience Measurement • Radio’s equivalent of NTI is RADAR; NSI is Arbitron • MET AQH PER (00): measure of reach; number of people (in hundreds) listening during a time period • MET AQH RATING: same as TV ratings; measure of percentage of potential listeners who tune in; only measures average number of people listening at any one time during the time frame • MET AQH SHARE: same as TV share; measure of percentage of current listeners tuned in; only measures average number of people listening at any one time during the time frame • If instead of AQH (Average Quarter Hour) scores are listed as CUME, this means that the measure is of total number of different people who listened, and so is generally higher than AQH • If instead of MET (metropolitan area) scores are listed as TSA (total survey area) then population is considered to be different from the metropolitan population, e.g. radio station broadcasts far beyond the metro area • Specific Audience handout shows a typical Arbitron Report

13. Practice Time • Using Neilsen Ratings Report • Which program had the highest overall rating? • Do more viewers watch the beginning or end of Cops San Bernadino? • What is the trend is total audience size for Front Page?

14. Practice Time • Using Arbitron Report • Which radio station has the largest total audience size? • Which radio station is the strongest among men aged 25-34? Women 35-44? • How would you describe the demographics of listeners of KSPA?

15. Magazine Audience Measurement • Circulation: measure of how many copies of an issue are sent to market including subscriptions and distributor sales • Readership: estimate of the number of people actually reading an issue of a magazine; more than one person typically reads the same copy of a magazine • These number are broken down by reader characteristics to more accurately define a target audience, ex. SRDS handout

16. Magazine rates Based on circulation that a publisher promises to provide Magazine circulation The number of copies of an issue sold Simmons Market Research Bureau Provides psychographic data on who reads which magazines and which products readers buy and consume MediaMark Measures readership for many popular magazines Standard Rate and Data Service Provides circulation, ad rates, and varying details about the magazine and the readers of a magazine as provided by publishers Readership Measurement

17. Standard Rate and Data Services • SRDS data gives us a ton of information about various publications • See handout • Circulation numbers • Contact info • Ad rates • Valuable circulation data

18. What can we get from SRDS? • Personnel • Reps or Branch Offices • Commission/Discount info • Ad Rates by size, type, frequency, specials • Issue and Closing dates • Circulation data

19. Practice Time • Using the SRDS report, answer the following: • What is the total circulation of Circuit Cellar Ink? • What is the target CPM of a 1-page 4-color bleed page ad run one time in CIO if the target audience is the Banking industry?