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Media and Estimates of Audience Size. Demands of IMP Greater importance on accurate and detailed target audience description –Move from national to local.

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Presentation on theme: "Media and Estimates of Audience Size. Demands of IMP Greater importance on accurate and detailed target audience description –Move from national to local."— Presentation transcript:

1 Media and Estimates of Audience Size

2 Demands of IMP Greater importance on accurate and detailed target audience description –Move from national to local –Move from mass to targeted media –Move from demographics to lifestyle segments Too much information on media patterns of different targets from market to market –Narrowcasting takes time and expertise

3 Budgetary Constraints Clients are more tuned-in –Biggest part of advertising budget Negotiability of new media create substantial time and billing demands Turf wars between and within IMC departments, and with clients

4 Accountability Explosion of new media creating greater demand for accountability Get beyond subjective evaluation toward concrete comparisons –Started creating medium specialists Bottom line: –Still mainly about cost efficiency

5 Changing Role of Media Planners More client contact and consulting –Must become account people –Must know who are the pioneers –Must be versed in IMC elements Including promotions and direct mail Must be grounded in fundamentals

6 Key Concepts Universe: The whole to which each subset is related –Ex. Total TV Households Rating: Percent of the total universe that is or does something –Ex. Watch Survivor

7 Understanding Ratings Total TV Households = MM Survivor Viewing Households = 22.5 MM Rating: Survivor HH related to TV HH

8 Calculating Ratings Rating: % of TV HH tuned to a program –Survivor Viewers / Total TV HH = Rating –22.5MM / 105.5MM = 21.3

9 Decimal Point Placement In Media Planning, Decimal Point Placement is Very Important Million (MM) vs. Thousands (M or 000) –105.5MM TV HH = 105,500(000) TV HH Percentages converted from raw number –Survivor Rating =.213 = 21.3%

10 Calculating HUT HUT = Households Using Television –Ex. How many HH were watching TV from 7:00 - 8:00 on Thursday? –65.5MM HUT Level: Viewing HH related to TV HH –Rating: Survivor HH related to TV HH HUT Level: % of TV HH watching television at a specific time HUT / TV HH = HUT Level 65.5MM / 105.5MM = 62.1%

11 Calculating Share Rating: % of TV HH tuned to a specific program HUT Level: % of TV HH watching television at a specific time Share is different Share: % of TV HH tuned to a specific program among all Households Using Television Survivor Viewers / HH Using TV = Share 22.5MM / 65.5MM = 34.4%

12 Formulas Rating = HUT x Share Share = Rating / HUT HUT = Rating / Share Rating = Audience Size / Universe Audience Size = Rating x Universe –(Audience size = Gross impressions)

13 Gross Impressions In media, primarily concerned with accumulation of audience Each audience member exposed to the message is considered an impression –Summed to equal gross impressions –Audience size = gross impressions for single show –For multiple programs, add audience sizes together for total gross impressions (GI)

14 Gross Rating Points Same logic applies to rating points Rating for individual programs are added together to calculate the total rating points accumulated across a schedule Gross Rating Points = GRPs Ex. Rating for Program 1 + Rating for Program 2 + Rating for Program 3 Gross Rating Points

15 Media Schedules Rating Aud. Size # of Ads GRPs GI Survivor mm mm Friends mm mm X-Files mm mm Felicity mm mm Total mm

16 Duplication of Impressions GRPs and mm GI More than 100% of the Universe? –How is this possible? GRPs and GI allow for the duplication of impressions –Someone might see more than one ad –Survivor and X-Files or multiple X-Files


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