Behavioral Research Syndicated Media Audience Research Data 3 Basic Equations

1
Behavioral ResearchSyndicated Media Audience
Research Data3 Basic Equations

• COMM 3710
• March 9, 2004
• Tim Larson

2
Electronic Syndicated Audience Research

• Nielsen Television
• http//www.nielsenmedia.com/
• http//www.zap2it.com/television/news/ratings
• http//tv.yahoo.com/nielsen/
• http//www.usatoday.com/life/television/nielsen.ht
  m
• Arbitron Radio
• http//www.arbitron.com/radio_stations/home.htm
• http//www.arbitron.com/home/content.stm
• Scarborough Research Local Markets
• http//www.scarborough.com
• NCC Cable
• http//www.spotcable.com/asp/age/marketingtools.as
  p?sectionmarketingtools
• Media Matrix Internet
• http//www.comscore.com/metrix/default.asp
• htttp//www.comscore.com/press/release.asp?press3
  05
• Fulgrum Analytics Media Consumption
• http//www.cyberdialogue.com/solutions/cvm/media_m
  odel.html

3
Internet Syndicated Audience Research Data
http//www.nielsen-netratings.com/downloads/NetVi
ew.pdf http//adres.internet.com/marketing/traffi
c/article/0, 1401,9161_176991,00.html http//www
.clickz.com/news/article.php/185541 http//www.co
mscore.com/press/release.asp?press305 Arbitron
gets out of Internet Ratings http//www.clickz.co
m/news/article.php/3319381
4
Print Syndicated Audience Research
Newspapers Newspaper Association of
America http//www.naa.org/artpage.cfm?AID
1592SID1020 Audit Bureau of
Circulation http//www.accessabc.com/reader/benef
its.htm?sourcenaaweb Magazines Where to do
Research http//www.ppa.co.uk/magad/powerofmagazi
nes/index.htm http//www.ppa.co.uk/magad/powerofm
agazines/index.htm Jack Meyers Report
http//www.jackmyers.com/pdf/03-27-03.pdf Cross
Media Intelligence TV and Magazines http//w
ww.nielsenmedia.com/newsreleases/2002/MRI.htm Info
mercial and Direct Response
http//www.cpodirect.com/tool_research.html
5
Broadcast Ratings

• Broadcast ratings are a behavioral measure
• Who in demographic terms is tuned in?
• Persons 12
• What stations are they tuned to?
• KSL-AM
• During what daypart are they tuned?
• Monday through Friday 6AM to 10AM
• How long are they tuned?
• Average Quarter Hour Rating
• How many different stations do they tune to?
• CUME rating

6
How do ratings work?

• http//entertainment.howstuffworks.com/question433
  .htm

7
Three Basic Ratings Equations Average
Quarter-Hour Rating AQH Persons Population of
Sex/Age/ cell Average Quarter-Hour Share AQH
Persons PUR or HUT CUME Rating CUME Audience
Pop. Of Sex/Age cell PUR Persons Using
Radio HUT Homes Using Television
8
Average Quarter-Hour Rating Rating Persons
listening to your station
Overall Population For example, lets say there
are 10,000 persons in the population we are
measuring. In a given time period (daypart),
there are 300 people listening to your station.
Divide the station listenership by the overall
population. 300 0.03 or 3 or a
rating of 3 10,000
9
Average Quarter Hour Share In our previous
example, 300 persons are tuned to a particular
station. Out of our overall population (10,000),
half (5,000) are listening during this time
period. The stations share of 5,000 is
calculated by dividing 300 by 5,000. Share
Persons listening to your station (PUR) All
persons listening to radio 300 0.06
or 6 or a 6 share 5,000
10
CUME Rating CUME rating Total of
different persons tuned to your
station Population 500 0.05 or
5 10,000
11
6AM
AQH 3 CUME 5
ABC
ABD
645AM
615AM
BD
ABCE
630AM
12
Other Important Equations Time Spent
Listening AQH Persons X Number of 1/4-Hours in
daypart CUME Persons (of corresponding
daypart) Lets say we have an AQH Persons of
300 and our CUME persons is 5,000, and we want
to figure our TSL for morning drive (Mon-Fri
6AM-10AM). which consists of 80 quarter
hours. TSL 300 X 80 24,000 4.8 quarter
hours 5,000 5,000 1.2
hours 14.4 minutes
per day
13
Turnover Rate CUME Persons AQH
Persons Turnover (Persons 12) CUME
Persons (Persons 12) AQH
Persons (Persons 12) CUME persons
3,600 12 AQH persons 300.
14
Reach and Frequency Reach identifies the
estimated number of different people reached by a
schedule. It is the unduplicated audience a
station delivers. Reach can be expressed either
as different persons or as a rating. Frequency
is the average number of times the unduplicated
listener will hear an advertising message.
15
Average Frequency Gross
Impressions Net Reach of Schedule
(persons) Gross Impressions Number
of times a spot is played X AQH Audience
16
Average Frequency Gross Impressions Reach
of Schedule (Persons) AQH Audience (persons)
9,100 CUME or Reach (persons) 201,200 No. of
Spots in Schedule 50 Gross Impressions
455,000 AF 9,100 X 50 201,200 2.26 times on
average Gross Impressions Number of times
spot is played X AQH Audience
17
Cost Per Rating Point CPP
Cost of Schedule 900 9 CPP
Gross Rating Points 100 CPP calculates
the cost of each GRP. Cost-per-point is based on
rating points derived from a stations AQH
audience multiplied by the number of
spots. Assumes 50 per spot 50 X 18 900
18
Optimum Effective Scheduling (OES)

• Based on the principle that you need to reach at
  least 50 of your target audience a minimum of
  three times in order to be effective.
• Takes into consideration this simple rule You
  need to expose your target to the message with
  enough frequency to produce an effect.

19
Calculating OES Spot LevelHow many ads should
you run to be effective?

• Calculate your stations weekly turnover rate
• CUME AQH
• Multiply turnover rate by a constant value of
  3.29.
• The number results in the quantity of spots
  required weekly to achieve an effective schedule.
  That is, to reach at least 50 of your audience
  at least three times.
• Example CUME persons 3,600 12
• AQH persons 300
• 
  
• 12 X 3.29 (39.48) or 40 commercials each
  week

20
Calculating OES Reach Level

• REACH is the same as CUME
• Multiply your stations CUME by .46
• The resulting number is the REACH goal for an
  effective schedule.
• Example 201,200 X .46 92,552
• This means that 92,552 prospects should hear your
  message at least three times per week on your
  station.

21

• Review
• Ratings are behavioral measures
• Who in demographic terms is tuned in?
• What station are they tuned to?
• During what daypart are they tuned?
• How long are they tuned?
• How many different stations do they tune to?