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MEDIA TERMINOLOGY &BASIC CALCULATIONSJOMC 272January 16th, 2013
Agenda• Media Language / Definitions  • Universe, Impression, Exposure, Reach, Rating, HUT/PUT, GRP,    Frequency, CPM, CP...
Universe• Definition: the total group of persons in a specific geographic area, that share a common characteristic.  • Geo...
Impression• Definition: One opportunity for one individual to see an advertisement. • Applies to TV, Radio, Magazines, Out...
Impressions exercise                                Table I             (Universe for Adults 18 – 49 = 129.9 milllion)    ...
Impressions exercise                                Table I             (Universe for Adults 18 – 49 = 129.9 milllion)    ...
Impressions exercise                                Table I             (Universe for Adults 18 – 49 = 129.9 milllion)    ...
Impressions exercise                                Table I             (Universe for Adults 18 – 49 = 129.9 milllion)    ...
Reach (Net Reach)• Definition: A count of persons with at least one impression. • Only counts each person once, so the num...
Rating• Definition: The portion of a demographic universe that is exposed to a specific media vehicle expressed as a perce...
Ratings exercise                               Table I            (Universe for Adults 18 – 49 = 129.9 milllion)      Prog...
Ratings exercise                               Table I            (Universe for Adults 18 – 49 = 129.9 milllion)      Prog...
Ratings exercise                               Table I            (Universe for Adults 18 – 49 = 129.9 milllion)      Prog...
Ratings exercise                                Table I             (Universe for Adults 18 – 49 = 129.9 milllion)      Pr...
Ratings exercise                                Table I             (Universe for Adults 18 – 49 = 129.9 milllion)      Pr...
Ratings exercise                                Table I             (Universe for Adults 18 – 49 = 129.9 milllion)      Pr...
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...
Share• Definition: Indicates the portion of the available TV/radio audience this is viewing a particular program  • Puts r...
Share• Definition: Indicates the portion of the available TV/radio audience this is viewing a particular program  • Puts r...
Gross Rating Point• Definition: Sum of all ratings in a campaign. It is the “gross” counterpart of “net ratings”  • GRPs (...
Gross Rating Point (cont.)• Calculate GRPs by adding up the rating points  • You buy 10 spots in a TV program with a 5 rat...
Gross Rating Point exercise• Solving for impressions  • Universe x GRP / 100 = impressions  • 215.5 MM universe = what doe...
Gross Rating Point exercise• Solving for impressions  • Universe x GRP / 100 = impressions  • 215.5 MM universe = what doe...
Gross Rating Point exercise• Solving for impressions  • Universe x GRP / 100 = impressions  • 215.5 MM universe = what doe...
Gross Rating Point exercise• Solving for impressions  • Universe x GRP / 100 = impressions  • 215.5 MM universe = what doe...
Gross Rating Point exercise• Solving for impressions  • Universe x GRP / 100 = impressions  • 215.5 MM universe = what doe...
Media Costs & Comparisions• CPM (Cost per Thousand)  • “M” is roman numeral for thousand (and why we use MM for    million...
Media Costs & Comparisions• CPM (Cost per Thousand)  • “M” is roman numeral for thousand (and why we use MM for    million...
Media Costs & Comparisions• CPM (Cost per Thousand)  • “M” is roman numeral for thousand (and why we use MM for    million...
Media Costs & ComparisonsDetermine the CPM for each medium, then for the overallcampaign. Medium       Cost         Impres...
Media Costs & ComparisonsDetermine the CPM for each medium, then for the overallcampaign. Medium           Cost           ...
Media Costs & ComparisonsDetermine the CPM for each medium, then for the overallcampaign. Medium           Cost           ...
Media Costs & ComparisonsDetermine the CPP for each medium, then for the overallcampaign. You will need to determine the G...
Media Costs & ComparisonsDetermine the CPP for each medium, then for the overallcampaign. You will need to determine the G...
Media Costs & ComparisonsDetermine the CPP for each medium, then for the overallcampaign. You will need to determine the G...
Media Costs & ComparisonsDetermine the CPP for each medium, then for the overallcampaign. You will need to determine the G...
Circulation / Coverage• Print terms  • Circulation – Number of copies distributed by a publication    • Different from Rea...
Internet terms• Page Views – The number of times a page is delivered to a browser.  • Unique page views can be used to est...
Questions?• Assignment for next week  • Read MFP chapters 3 & 4  • MFP exercises 1 & 2  • Submit via Sakai, email or hand ...
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Media terminology & basic calculations 1.16.13

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Media terminology & basic calculations 1.16.13

  1. 1. MEDIA TERMINOLOGY &BASIC CALCULATIONSJOMC 272January 16th, 2013
  2. 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. 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. 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. 5. Impressions exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp (000)CSI CBS 13650Monday Night Football NBC 7850Castle 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. 6. Impressions exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp (000)CSI CBS 13650Monday Night Football NBC 7850Castle 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. 7. Impressions exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp (000)CSI CBS 13650Monday Night Football NBC 7850Castle 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. 8. Impressions exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp (000)CSI CBS 13650Monday Night Football NBC 7850Castle 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. 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. 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. 11. Ratings exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp Rating (000)CSI CBS 13650Monday Night NBC 7850FootballCastle ABC 15230If we know the impression number for each individual program, and weknow the universe number we can determine the program rating.Rating = (Impressions / Universe) x 100What are the ratings for these programs?
  12. 12. Ratings exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp Rating (000)CSI CBS 13650Monday Night NBC 7850FootballCastle ABC 15230Rating = (Impressions / Universe) x 100Are they the same scale?
  13. 13. Ratings exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp Rating (000)CSI CBS 13650Monday Night NBC 7850FootballCastle ABC 15230Rating = (Impressions / Universe) x 100Are they the same scale? 129.9 million = 129900 thousands (000)
  14. 14. Ratings exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp Rating (000)CSI CBS 13650 10.5Monday Night NBC 7850FootballCastle ABC 15230Rating = (Impressions / Universe) x 100Are they the same scale? 129.9 million = 129900 thousands (000)CSI (13650 / 129900) x 100 = 10.50808 = 10.5
  15. 15. Ratings exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp Rating (000)CSI CBS 13650 10.5Monday Night NBC 7850FootballCastle ABC 15230Rating = (Impressions / Universe) x 100MNF (7850 / 129900) x 100 = ???Castle (??? / ???) x 100 = ???
  16. 16. Ratings exercise Table I (Universe for Adults 18 – 49 = 129.9 milllion) Program Network Adults 18-49 Imp Rating (000)CSI CBS 13650 10.5Monday Night NBC 7850 6.0FootballCastle ABC 15230 11.7Rating = (Impressions / Universe) x 100MNF (7850 / 129900) x 100 = ???Castle (??? / ???) x 100 = ??? EASY!
  17. 17. HUT / PUT• Definition: Households using Television / Persons using Television• Guess what PUR is…
  18. 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 usageHUT = (# HHs using TV during time period / total HHs inuniverse) x 100Tells us the total potential audience for TV or Radioprogramming. Those that have their TV/Radio on.
  19. 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. 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. 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 waysGRPs = (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. 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 GRPsRULES: All the ratings must have the same demographicbase 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. 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. 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. 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. 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. 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. 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. 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. 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. 31. Media Costs & ComparisonsDetermine the CPM for each medium, then for the overallcampaign. 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. 32. Media Costs & ComparisonsDetermine the CPM for each medium, then for the overallcampaign. 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. 33. Media Costs & ComparisonsDetermine the CPM for each medium, then for the overallcampaign. 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. 34. Media Costs & ComparisonsDetermine the CPP for each medium, then for the overallcampaign. You will need to determine the GRPs for eachmedium. Can you with the information provided?Medium Cost Impressions GRP CPPMagazine $50,000 160,000Radio $50,000 260,000TV $75,000 350,000TOTAL $175,000 770,000 GRPs = (gross impressions / universe) x 100 (Cost / Impressions) x 1000 = CPM
  35. 35. Media Costs & ComparisonsDetermine the CPP for each medium, then for the overallcampaign. You will need to determine the GRPs for eachmedium. Can you with the information provided?Medium Cost Impressions GRP CPPMagazine $50,000 160,000Radio $50,000 260,000TV $75,000 350,000TOTAL $175,000 770,000 Universe (Adults 18 – 34) 250,000 GRPs = (gross impressions / universe) x 100 (Cost / Impressions) x 1000 = CPM
  36. 36. Media Costs & ComparisonsDetermine the CPP for each medium, then for the overallcampaign. You will need to determine the GRPs for eachmedium. Can you with the information provided?Medium Cost Impressions GRP CPPMagazine $50,000 160,000 64Radio $50,000 260,000 104TV $75,000 350,000 140TOTAL $175,000 770,000 384 Universe (Adults 18 – 34) 250,000 GRPs = (gross impressions / universe) x 100 (Cost / Impressions) x 1000 = CPM
  37. 37. Media Costs & ComparisonsDetermine the CPP for each medium, then for the overallcampaign. You will need to determine the GRPs for eachmedium. Can you with the information provided?Medium Cost Impressions GRP CPPMagazine $50,000 160,000 64 $781Radio $50,000 260,000 104 $481TV $75,000 350,000 140 $536TOTAL $175,000 770,000 384 $456 Universe (Adults 18 – 34) 250,000 GRPs = (gross impressions / universe) x 100 (Cost / Impressions) x 1000 = CPM
  38. 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. 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. 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

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