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MEDIA TERMINOLOGY &
BASIC CALCULATIONS
JOMC 272
January 16th, 2013
Agenda
• Media Language / Definitions
  • Universe, Impression, Exposure, Reach, Rating, HUT/PUT, GRP,
    Frequency, CPM, CPP, Circulation, Coverage, Internet terms
• Calculations
  • Reach, Rating, HUT/PUT, Share, GRP, Frequency, CPM, CPP
• How are they connected?
• REACH x FREQUENCY = GRPs
Universe
• Definition: the total group of persons in a specific
 geographic area, that share a common characteristic.
  • Geographic limit
  • Can be Households or Persons
  • “Population” alternative term
  • Basis for calculations
• Examples – Women 18-49 in Total US, Men 18+ in
  Charlotte Metro
• Usually listed at the top of a report or table
• RULES
  • Add universes if they are mutually exclusive (don’t overlap)
    • Ex. M18+ and W18+ can be added together to get A18+
Impression
• Definition: One opportunity for one individual to see
 an advertisement.
 • Applies to TV, Radio, Magazines, Outdoor – basically any media
 • “Opportunity” is the key term – There is no guarantee a viewer,
   reader or listener will actually be exposed to the ad.
 • Measures the medium or media vehicle, not the ad
• Exposure – This is sometimes used in place of
  Impression. It denotes “exposure to the medium”
• Gross Impressions: Total number of opportunities to
  see an advertisement, as provided by a campaign or
  plan.
 • Sum of all opportunities, includes multiple impressions by persons
   in the target audience.
Impressions exercise
                                Table I
             (Universe for Adults 18 – 49 = 129.9 milllion)
         Program             Network         Adults 18-49 Imp (000)
CSI                             CBS                           13650
Monday Night Football          NBC                              7850
Castle                          ABC                           15230


• What is the universe for this table?
• What are the impressions for CSI in complete numbers?
• If you purchased one spot in CSI and one spot in Monday Night Football,
  what would your Gross Impressions be?
Impressions exercise
                                Table I
             (Universe for Adults 18 – 49 = 129.9 milllion)
         Program             Network         Adults 18-49 Imp (000)
CSI                             CBS                           13650
Monday Night Football          NBC                              7850
Castle                          ABC                           15230


• What is the universe for this table?     129.9 million or 129,900,000
• What are the impressions for CSI in complete numbers?
• If you purchased one spot in CSI and one spot in Monday Night Football,
  what would your Gross Impressions be?
Impressions exercise
                                Table I
             (Universe for Adults 18 – 49 = 129.9 milllion)
         Program             Network         Adults 18-49 Imp (000)
CSI                             CBS                           13650
Monday Night Football          NBC                              7850
Castle                          ABC                           15230


• What is the universe for this table?     129.9 million or 129,900,000
• What are the impressions for CSI in complete numbers?      13,650,000
• If you purchased one spot in CSI and one spot in Monday Night Football,
  what would your Gross Impressions be?
Impressions exercise
                                Table I
             (Universe for Adults 18 – 49 = 129.9 milllion)
         Program             Network         Adults 18-49 Imp (000)
CSI                             CBS                           13650
Monday Night Football          NBC                              7850
Castle                          ABC                           15230


• What is the universe for this table?     129.9 million or 129,900,000
• What are the impressions for CSI in complete numbers?      13,650,000
• If you purchased one spot in CSI and one spot in Monday Night Football,
  what would your Gross Impressions be? 21,500,000
     • 13650 + 7850 = 21500
     • Convert to complete numbers (000) by adding three zeros
Reach (Net Reach)
• Definition: A count of persons with at least one
 impression.
 • Only counts each person once, so the number of impressions is
   irrelevant
 • Typically described as a percentage of the universe
 • Works for any demographic, including households


 Reach = (# persons reached / # persons in universe) x 100

 RULES:
 • The numbers used for this calculation, must be on the same scale.
   Ex. Hundreds (00), Thousands (000)
 • May have to convert numbers to the same scale before determining
   reach.
Rating
• Definition: The portion of a demographic universe
 that is exposed to a specific media vehicle expressed
 as a percentage of that universe.
 • Usually rounded to one decimal
 • Reach for an individual program, magazine, or other media vehicle


 Rating = (# persons exposed to media / # persons in universe) x
 100

 RULES: Ratings from different universes cannot be averaged.
Ratings exercise
                               Table I
            (Universe for Adults 18 – 49 = 129.9 milllion)
      Program     Network     Adults 18-49 Imp               Rating
                                    (000)
CSI                 CBS                    13650
Monday Night        NBC                     7850
Football
Castle              ABC                    15230

If we know the impression number for each individual program, and we
know the universe number we can determine the program rating.

Rating = (Impressions / Universe) x 100

What are the ratings for these programs?
Ratings exercise
                               Table I
            (Universe for Adults 18 – 49 = 129.9 milllion)
      Program     Network     Adults 18-49 Imp               Rating
                                    (000)
CSI                 CBS                    13650
Monday Night        NBC                     7850
Football
Castle              ABC                    15230

Rating = (Impressions / Universe) x 100

Are they the same scale?
Ratings exercise
                               Table I
            (Universe for Adults 18 – 49 = 129.9 milllion)
      Program     Network     Adults 18-49 Imp               Rating
                                    (000)
CSI                 CBS                    13650
Monday Night        NBC                     7850
Football
Castle              ABC                    15230

Rating = (Impressions / Universe) x 100

Are they the same scale? 129.9 million = 129900 thousands (000)
Ratings exercise
                                Table I
             (Universe for Adults 18 – 49 = 129.9 milllion)
      Program      Network     Adults 18-49 Imp               Rating
                                     (000)
CSI                  CBS                    13650              10.5
Monday Night         NBC                     7850
Football
Castle               ABC                    15230

Rating = (Impressions / Universe) x 100

Are they the same scale? 129.9 million = 129900 thousands (000)

CSI       (13650 / 129900) x 100 = 10.50808 = 10.5
Ratings exercise
                                Table I
             (Universe for Adults 18 – 49 = 129.9 milllion)
      Program      Network     Adults 18-49 Imp               Rating
                                     (000)
CSI                  CBS                    13650              10.5
Monday Night         NBC                     7850
Football
Castle               ABC                    15230

Rating = (Impressions / Universe) x 100

MNF       (7850 / 129900) x 100 = ???

Castle    (??? / ???) x 100 = ???
Ratings exercise
                                Table I
             (Universe for Adults 18 – 49 = 129.9 milllion)
      Program      Network     Adults 18-49 Imp               Rating
                                     (000)
CSI                  CBS                    13650              10.5
Monday Night         NBC                     7850              6.0
Football
Castle               ABC                    15230              11.7

Rating = (Impressions / Universe) x 100

MNF       (7850 / 129900) x 100 = ???

Castle    (??? / ???) x 100 = ???
                                                                EASY!
HUT / PUT
• Definition: Households using Television / Persons
  using Television
• Guess what PUR is…
HUT / PUT
• Definition: Households using Television / Persons
  using Television
• Guess what PUR is…           Persons using Radio
  • Expressed as a percentage of the universe
  • Used to get a sense of overall media usage
HUT = (# HHs using TV during time period / total HHs in
universe) x 100

Tells us the total potential audience for TV or Radio
programming. Those that have their TV/Radio on.
Share
• Definition: Indicates the portion of the available
 TV/radio audience this is viewing a particular program
  • Puts ratings into perspective
    • Rating alone only tell us what percentage of the universe was watching
  Ex.   Tonight Show – rating 4.2, HUT 34.8         Share = 12
        NCIS – rating 6.8, HUT 69.7                 Share = 10
Share
• Definition: Indicates the portion of the available
 TV/radio audience this is viewing a particular program
  • Puts ratings into perspective
    • Rating alone only tell us what percentage of the universe was watching
  Ex.   Tonight Show – rating 4.2, HUT 34.8         Share = 12
        NCIS – rating 6.8, HUT 69.7                 Share = 10

  HUT is the pie, SHARE is the size of the slice!
Gross Rating Point
• Definition: Sum of all ratings in a campaign. It is the
 “gross” counterpart of “net ratings”
  • GRPs (or Grips)
  • Includes duplication (counting people multiple times)
  • Calculated several ways
GRPs = (gross impressions / universe) x 100
• 1 GRP = a number of impressions equal to 1% of the
  universe.
• 100 GRPs = a number of gross impressions equal to the
  size of the universe.
  • Doesn’t mean you are reaching 100% of the universe
Gross Rating Point (cont.)
• Calculate GRPs by adding up the rating points
  • You buy 10 spots in a TV program with a 5 rating and 20 spots on a
    radio program with a 3.5 rating. What is your total GRPs?
    • 10 x 5 = 50
    • 20 x 3.5 = 70     50 + 70 = 120 GRPs


RULES: All the ratings must have the same demographic
base to be added. (Ex. W25-54, A18+)
Converting back to impressions
• (GRPs / 100) x universe = impressions
  • (120 / 100) x 129.9 million = 12.99 million impressions
Gross Rating Point exercise
• Solving for impressions
  • Universe x GRP / 100 = impressions
  • 215.5 MM universe = what does 1 GRPS represent in impressions?
Gross Rating Point exercise
• Solving for impressions
  • Universe x GRP / 100 = impressions
  • 215.5 MM universe = what does 1 GRPS represent in impressions?
    • 215,500,000 x 1 / 100 = 2.2 MM impressions (or 2,155,000)
Gross Rating Point exercise
• Solving for impressions
  • Universe x GRP / 100 = impressions
  • 215.5 MM universe = what does 1 GRPS represent in impressions?
    • 215,500,000 x 1 / 100 = 2.2 MM impressions (or 2,155,000)



REACH x FREQUENCY = GRPs

• Frequency = GRP / Reach
• Reach = GRP / Frequency
  • Ex. 250 grps, 75 reach – What is the Frequency?
Gross Rating Point exercise
• Solving for impressions
  • Universe x GRP / 100 = impressions
  • 215.5 MM universe = what does 1 GRPS represent in impressions?
    • 215,500,000 x 1 / 100 = 2.2 MM impressions (or 2,155,000)



REACH x FREQUENCY = GRPs

• Frequency = GRP / Reach
• Reach = GRP / Frequency
  • Ex. 250 grps, 75 reach – What is the Frequency?
  • 250 / 75 = 3.3 frequency
Gross Rating Point exercise
• Solving for impressions
  • Universe x GRP / 100 = impressions
  • 215.5 MM universe = what does 1 GRPS represent in impressions?
    • 215,500,000 x 1 / 100 = 2.2 MM impressions (or 2,155,000)



REACH x FREQUENCY = GRPs

• Frequency = GRP / Reach
• Reach = GRP / Frequency
  • Ex. 250 grps, 75 reach – What is the Frequency?
  • 250 / 75 = 3.3 frequency
  • Figure for Reach 250 / 3.3 = 75 Reach
Media Costs & Comparisions
• CPM (Cost per Thousand)
  • “M” is roman numeral for thousand (and why we use MM for
    million)
  • Used to compare costs to reach 1,000 gross impressions
  • Cost of the schedule / total gross impressions x 1000
• Ex. Magazine plan costs $15,000 and generates an
 estimated 60,000 impressions. What is the CPM?
Media Costs & Comparisions
• CPM (Cost per Thousand)
  • “M” is roman numeral for thousand (and why we use MM for
    million)
  • Used to compare costs to reach 1,000 gross impressions
  • Cost of the schedule / total gross impressions x 1000
• Ex. Magazine plan costs $15,000 and generates an
 estimated 60,000 impressions. What is the CPM?
  • $15,000 / 60,000 = 0.25 x 1,000 = $250 CPM
  • $15,000 / 60 = $250
Media Costs & Comparisions
• CPM (Cost per Thousand)
  • “M” is roman numeral for thousand (and why we use MM for
    million)
  • Used to compare costs to reach 1,000 gross impressions
  • Cost of the schedule / total gross impressions x 1000
• Ex. Magazine plan costs $15,000 and generates an
 estimated 60,000 impressions. What is the CPM?
  • $15,000 / 60,000 = 0.25 x 1,000 = $250 CPM
  • $15,000 / 60 = $250
• CPP (Cost per Point)
  • Used to compare costs to reach 1 GRP.
  • Cost of schedule / total GRPs
  • $15,000 / 200 GRPs = $75 CPP
Media Costs & Comparisons
Determine the CPM for each medium, then for the overall
campaign.
 Medium       Cost         Impressions   CPM
 Magazine     $50,000      160,000
 Radio        $50,000      260,000
 TV           $75,000      350,000
 TOTAL        $175,000     770,000
Media Costs & Comparisons
Determine the CPM for each medium, then for the overall
campaign.
 Medium           Cost               Impressions   CPM
 Magazine         $50,000            160,000       $313
 Radio            $50,000            260,000       $192
 TV               $75,000            350,000
 TOTAL            $175,000           770,000


 (Cost / Impressions) x 1000 = CPM
Media Costs & Comparisons
Determine the CPM for each medium, then for the overall
campaign.
 Medium           Cost               Impressions   CPM
 Magazine         $50,000            160,000       $313
 Radio            $50,000            260,000       $192
 TV               $75,000            350,000       $214
 TOTAL            $175,000           770,000       $227


 (Cost / Impressions) x 1000 = CPM
Media Costs & Comparisons
Determine the CPP for each medium, then for the overall
campaign. You will need to determine the GRPs for each
medium. Can you with the information provided?

Medium        Cost       Impressions    GRP    CPP
Magazine      $50,000    160,000
Radio         $50,000    260,000
TV            $75,000    350,000
TOTAL         $175,000   770,000



 GRPs = (gross impressions / universe) x 100
 (Cost / Impressions) x 1000 = CPM
Media Costs & Comparisons
Determine the CPP for each medium, then for the overall
campaign. You will need to determine the GRPs for each
medium. Can you with the information provided?

Medium        Cost       Impressions    GRP    CPP
Magazine      $50,000    160,000
Radio         $50,000    260,000
TV            $75,000    350,000
TOTAL         $175,000   770,000



 Universe (Adults 18 – 34) 250,000
 GRPs = (gross impressions / universe) x 100
 (Cost / Impressions) x 1000 = CPM
Media Costs & Comparisons
Determine the CPP for each medium, then for the overall
campaign. You will need to determine the GRPs for each
medium. Can you with the information provided?

Medium        Cost       Impressions    GRP    CPP
Magazine      $50,000    160,000        64
Radio         $50,000    260,000        104
TV            $75,000    350,000        140
TOTAL         $175,000   770,000        384



 Universe (Adults 18 – 34) 250,000
 GRPs = (gross impressions / universe) x 100
 (Cost / Impressions) x 1000 = CPM
Media Costs & Comparisons
Determine the CPP for each medium, then for the overall
campaign. You will need to determine the GRPs for each
medium. Can you with the information provided?

Medium        Cost       Impressions    GRP    CPP
Magazine      $50,000    160,000        64     $781
Radio         $50,000    260,000        104    $481
TV            $75,000    350,000        140    $536
TOTAL         $175,000   770,000        384    $456



 Universe (Adults 18 – 34) 250,000
 GRPs = (gross impressions / universe) x 100
 (Cost / Impressions) x 1000 = CPM
Circulation / Coverage
• Print terms
  • Circulation – Number of copies distributed by a publication
    • Different from Readership, which is typically an inflated number
      (Circulation x 3)
    • Always use circulation when comparing costs / impressions
  • Coverage – refers to the portion of households in a market that are
    in the publication’s delivery area.
    • Ex. N&O has 75% coverage in the Raleigh/Durham market
Internet terms
• Page Views – The number of times a page is delivered to
 a browser.
  • Unique page views can be used to estimate the net audience size
• Impressions – The delivery of an ad to a browser. An
 opportunity to see the ad.
  • Banner ads are typically purchased in terms of impressions
  • Cost-per-thousand impressions (CPM)
  • Typical rates range from $5 CPM to $25 CPM, depending on the
   website and page (Weather vs News vs Homepage)
• Unique Visitors – Estimated number of unique persons
 that visited a site. Same as reach.
Questions?
• Assignment for next week
  • Read MFP chapters 3 & 4
  • MFP exercises 1 & 2
  • Submit via Sakai, email or hand in hard copy
  • Please transfer answers to word document
    • Exercise 1
       • 1. Good Morning America 1,520,000
            Regis & Kelly 4,090,000

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Media terminology & basic calculations 1.16.13

  • 1. MEDIA TERMINOLOGY & BASIC CALCULATIONS JOMC 272 January 16th, 2013
  • 2. Agenda • Media Language / Definitions • Universe, Impression, Exposure, Reach, Rating, HUT/PUT, GRP, Frequency, CPM, CPP, Circulation, Coverage, Internet terms • Calculations • Reach, Rating, HUT/PUT, Share, GRP, Frequency, CPM, CPP • How are they connected? • REACH x FREQUENCY = GRPs
  • 3. Universe • Definition: the total group of persons in a specific geographic area, that share a common characteristic. • Geographic limit • Can be Households or Persons • “Population” alternative term • Basis for calculations • Examples – Women 18-49 in Total US, Men 18+ in Charlotte Metro • Usually listed at the top of a report or table • RULES • Add universes if they are mutually exclusive (don’t overlap) • Ex. M18+ and W18+ can be added together to get A18+
  • 4. Impression • Definition: One opportunity for one individual to see an advertisement. • Applies to TV, Radio, Magazines, Outdoor – basically any media • “Opportunity” is the key term – There is no guarantee a viewer, reader or listener will actually be exposed to the ad. • Measures the medium or media vehicle, not the ad • Exposure – This is sometimes used in place of Impression. It denotes “exposure to the medium” • Gross Impressions: Total number of opportunities to see an advertisement, as provided by a campaign or plan. • Sum of all opportunities, includes multiple impressions by persons in the target audience.
  • 5. Impressions exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp (000) CSI CBS 13650 Monday Night Football NBC 7850 Castle ABC 15230 • What is the universe for this table? • What are the impressions for CSI in complete numbers? • If you purchased one spot in CSI and one spot in Monday Night Football, what would your Gross Impressions be?
  • 6. Impressions exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp (000) CSI CBS 13650 Monday Night Football NBC 7850 Castle ABC 15230 • What is the universe for this table? 129.9 million or 129,900,000 • What are the impressions for CSI in complete numbers? • If you purchased one spot in CSI and one spot in Monday Night Football, what would your Gross Impressions be?
  • 7. Impressions exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp (000) CSI CBS 13650 Monday Night Football NBC 7850 Castle ABC 15230 • What is the universe for this table? 129.9 million or 129,900,000 • What are the impressions for CSI in complete numbers? 13,650,000 • If you purchased one spot in CSI and one spot in Monday Night Football, what would your Gross Impressions be?
  • 8. Impressions exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp (000) CSI CBS 13650 Monday Night Football NBC 7850 Castle ABC 15230 • What is the universe for this table? 129.9 million or 129,900,000 • What are the impressions for CSI in complete numbers? 13,650,000 • If you purchased one spot in CSI and one spot in Monday Night Football, what would your Gross Impressions be? 21,500,000 • 13650 + 7850 = 21500 • Convert to complete numbers (000) by adding three zeros
  • 9. Reach (Net Reach) • Definition: A count of persons with at least one impression. • Only counts each person once, so the number of impressions is irrelevant • Typically described as a percentage of the universe • Works for any demographic, including households Reach = (# persons reached / # persons in universe) x 100 RULES: • The numbers used for this calculation, must be on the same scale. Ex. Hundreds (00), Thousands (000) • May have to convert numbers to the same scale before determining reach.
  • 10. Rating • Definition: The portion of a demographic universe that is exposed to a specific media vehicle expressed as a percentage of that universe. • Usually rounded to one decimal • Reach for an individual program, magazine, or other media vehicle Rating = (# persons exposed to media / # persons in universe) x 100 RULES: Ratings from different universes cannot be averaged.
  • 11. Ratings exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp Rating (000) CSI CBS 13650 Monday Night NBC 7850 Football Castle ABC 15230 If we know the impression number for each individual program, and we know the universe number we can determine the program rating. Rating = (Impressions / Universe) x 100 What are the ratings for these programs?
  • 12. Ratings exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp Rating (000) CSI CBS 13650 Monday Night NBC 7850 Football Castle ABC 15230 Rating = (Impressions / Universe) x 100 Are they the same scale?
  • 13. Ratings exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp Rating (000) CSI CBS 13650 Monday Night NBC 7850 Football Castle ABC 15230 Rating = (Impressions / Universe) x 100 Are they the same scale? 129.9 million = 129900 thousands (000)
  • 14. Ratings exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp Rating (000) CSI CBS 13650 10.5 Monday Night NBC 7850 Football Castle ABC 15230 Rating = (Impressions / Universe) x 100 Are they the same scale? 129.9 million = 129900 thousands (000) CSI (13650 / 129900) x 100 = 10.50808 = 10.5
  • 15. Ratings exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp Rating (000) CSI CBS 13650 10.5 Monday Night NBC 7850 Football Castle ABC 15230 Rating = (Impressions / Universe) x 100 MNF (7850 / 129900) x 100 = ??? Castle (??? / ???) x 100 = ???
  • 16. Ratings exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp Rating (000) CSI CBS 13650 10.5 Monday Night NBC 7850 6.0 Football Castle ABC 15230 11.7 Rating = (Impressions / Universe) x 100 MNF (7850 / 129900) x 100 = ??? Castle (??? / ???) x 100 = ??? EASY!
  • 17. HUT / PUT • Definition: Households using Television / Persons using Television • Guess what PUR is…
  • 18. HUT / PUT • Definition: Households using Television / Persons using Television • Guess what PUR is… Persons using Radio • Expressed as a percentage of the universe • Used to get a sense of overall media usage HUT = (# HHs using TV during time period / total HHs in universe) x 100 Tells us the total potential audience for TV or Radio programming. Those that have their TV/Radio on.
  • 19. Share • Definition: Indicates the portion of the available TV/radio audience this is viewing a particular program • Puts ratings into perspective • Rating alone only tell us what percentage of the universe was watching Ex. Tonight Show – rating 4.2, HUT 34.8 Share = 12 NCIS – rating 6.8, HUT 69.7 Share = 10
  • 20. Share • Definition: Indicates the portion of the available TV/radio audience this is viewing a particular program • Puts ratings into perspective • Rating alone only tell us what percentage of the universe was watching Ex. Tonight Show – rating 4.2, HUT 34.8 Share = 12 NCIS – rating 6.8, HUT 69.7 Share = 10 HUT is the pie, SHARE is the size of the slice!
  • 21. Gross Rating Point • Definition: Sum of all ratings in a campaign. It is the “gross” counterpart of “net ratings” • GRPs (or Grips) • Includes duplication (counting people multiple times) • Calculated several ways GRPs = (gross impressions / universe) x 100 • 1 GRP = a number of impressions equal to 1% of the universe. • 100 GRPs = a number of gross impressions equal to the size of the universe. • Doesn’t mean you are reaching 100% of the universe
  • 22. Gross Rating Point (cont.) • Calculate GRPs by adding up the rating points • You buy 10 spots in a TV program with a 5 rating and 20 spots on a radio program with a 3.5 rating. What is your total GRPs? • 10 x 5 = 50 • 20 x 3.5 = 70 50 + 70 = 120 GRPs RULES: All the ratings must have the same demographic base to be added. (Ex. W25-54, A18+) Converting back to impressions • (GRPs / 100) x universe = impressions • (120 / 100) x 129.9 million = 12.99 million impressions
  • 23. Gross Rating Point exercise • Solving for impressions • Universe x GRP / 100 = impressions • 215.5 MM universe = what does 1 GRPS represent in impressions?
  • 24. Gross Rating Point exercise • Solving for impressions • Universe x GRP / 100 = impressions • 215.5 MM universe = what does 1 GRPS represent in impressions? • 215,500,000 x 1 / 100 = 2.2 MM impressions (or 2,155,000)
  • 25. Gross Rating Point exercise • Solving for impressions • Universe x GRP / 100 = impressions • 215.5 MM universe = what does 1 GRPS represent in impressions? • 215,500,000 x 1 / 100 = 2.2 MM impressions (or 2,155,000) REACH x FREQUENCY = GRPs • Frequency = GRP / Reach • Reach = GRP / Frequency • Ex. 250 grps, 75 reach – What is the Frequency?
  • 26. Gross Rating Point exercise • Solving for impressions • Universe x GRP / 100 = impressions • 215.5 MM universe = what does 1 GRPS represent in impressions? • 215,500,000 x 1 / 100 = 2.2 MM impressions (or 2,155,000) REACH x FREQUENCY = GRPs • Frequency = GRP / Reach • Reach = GRP / Frequency • Ex. 250 grps, 75 reach – What is the Frequency? • 250 / 75 = 3.3 frequency
  • 27. Gross Rating Point exercise • Solving for impressions • Universe x GRP / 100 = impressions • 215.5 MM universe = what does 1 GRPS represent in impressions? • 215,500,000 x 1 / 100 = 2.2 MM impressions (or 2,155,000) REACH x FREQUENCY = GRPs • Frequency = GRP / Reach • Reach = GRP / Frequency • Ex. 250 grps, 75 reach – What is the Frequency? • 250 / 75 = 3.3 frequency • Figure for Reach 250 / 3.3 = 75 Reach
  • 28. Media Costs & Comparisions • CPM (Cost per Thousand) • “M” is roman numeral for thousand (and why we use MM for million) • Used to compare costs to reach 1,000 gross impressions • Cost of the schedule / total gross impressions x 1000 • Ex. Magazine plan costs $15,000 and generates an estimated 60,000 impressions. What is the CPM?
  • 29. Media Costs & Comparisions • CPM (Cost per Thousand) • “M” is roman numeral for thousand (and why we use MM for million) • Used to compare costs to reach 1,000 gross impressions • Cost of the schedule / total gross impressions x 1000 • Ex. Magazine plan costs $15,000 and generates an estimated 60,000 impressions. What is the CPM? • $15,000 / 60,000 = 0.25 x 1,000 = $250 CPM • $15,000 / 60 = $250
  • 30. Media Costs & Comparisions • CPM (Cost per Thousand) • “M” is roman numeral for thousand (and why we use MM for million) • Used to compare costs to reach 1,000 gross impressions • Cost of the schedule / total gross impressions x 1000 • Ex. Magazine plan costs $15,000 and generates an estimated 60,000 impressions. What is the CPM? • $15,000 / 60,000 = 0.25 x 1,000 = $250 CPM • $15,000 / 60 = $250 • CPP (Cost per Point) • Used to compare costs to reach 1 GRP. • Cost of schedule / total GRPs • $15,000 / 200 GRPs = $75 CPP
  • 31. Media Costs & Comparisons Determine the CPM for each medium, then for the overall campaign. Medium Cost Impressions CPM Magazine $50,000 160,000 Radio $50,000 260,000 TV $75,000 350,000 TOTAL $175,000 770,000
  • 32. Media Costs & Comparisons Determine the CPM for each medium, then for the overall campaign. Medium Cost Impressions CPM Magazine $50,000 160,000 $313 Radio $50,000 260,000 $192 TV $75,000 350,000 TOTAL $175,000 770,000 (Cost / Impressions) x 1000 = CPM
  • 33. Media Costs & Comparisons Determine the CPM for each medium, then for the overall campaign. Medium Cost Impressions CPM Magazine $50,000 160,000 $313 Radio $50,000 260,000 $192 TV $75,000 350,000 $214 TOTAL $175,000 770,000 $227 (Cost / Impressions) x 1000 = CPM
  • 34. Media Costs & Comparisons Determine the CPP for each medium, then for the overall campaign. You will need to determine the GRPs for each medium. Can you with the information provided? Medium Cost Impressions GRP CPP Magazine $50,000 160,000 Radio $50,000 260,000 TV $75,000 350,000 TOTAL $175,000 770,000 GRPs = (gross impressions / universe) x 100 (Cost / Impressions) x 1000 = CPM
  • 35. Media Costs & Comparisons Determine the CPP for each medium, then for the overall campaign. You will need to determine the GRPs for each medium. Can you with the information provided? Medium Cost Impressions GRP CPP Magazine $50,000 160,000 Radio $50,000 260,000 TV $75,000 350,000 TOTAL $175,000 770,000 Universe (Adults 18 – 34) 250,000 GRPs = (gross impressions / universe) x 100 (Cost / Impressions) x 1000 = CPM
  • 36. Media Costs & Comparisons Determine the CPP for each medium, then for the overall campaign. You will need to determine the GRPs for each medium. Can you with the information provided? Medium Cost Impressions GRP CPP Magazine $50,000 160,000 64 Radio $50,000 260,000 104 TV $75,000 350,000 140 TOTAL $175,000 770,000 384 Universe (Adults 18 – 34) 250,000 GRPs = (gross impressions / universe) x 100 (Cost / Impressions) x 1000 = CPM
  • 37. Media Costs & Comparisons Determine the CPP for each medium, then for the overall campaign. You will need to determine the GRPs for each medium. Can you with the information provided? Medium Cost Impressions GRP CPP Magazine $50,000 160,000 64 $781 Radio $50,000 260,000 104 $481 TV $75,000 350,000 140 $536 TOTAL $175,000 770,000 384 $456 Universe (Adults 18 – 34) 250,000 GRPs = (gross impressions / universe) x 100 (Cost / Impressions) x 1000 = CPM
  • 38. Circulation / Coverage • Print terms • Circulation – Number of copies distributed by a publication • Different from Readership, which is typically an inflated number (Circulation x 3) • Always use circulation when comparing costs / impressions • Coverage – refers to the portion of households in a market that are in the publication’s delivery area. • Ex. N&O has 75% coverage in the Raleigh/Durham market
  • 39. Internet terms • Page Views – The number of times a page is delivered to a browser. • Unique page views can be used to estimate the net audience size • Impressions – The delivery of an ad to a browser. An opportunity to see the ad. • Banner ads are typically purchased in terms of impressions • Cost-per-thousand impressions (CPM) • Typical rates range from $5 CPM to $25 CPM, depending on the website and page (Weather vs News vs Homepage) • Unique Visitors – Estimated number of unique persons that visited a site. Same as reach.
  • 40. Questions? • Assignment for next week • Read MFP chapters 3 & 4 • MFP exercises 1 & 2 • Submit via Sakai, email or hand in hard copy • Please transfer answers to word document • Exercise 1 • 1. Good Morning America 1,520,000 Regis & Kelly 4,090,000

Editor's Notes

  1. M18+ means Men 18+ (“M” is an abbreviation for Men)W18+ means Women 18+ (“W” is an abbreviation for Women)A18+ means Adults 18+ (“A” is an abbreviation for Adults)