Media terminology & basic calculations 1.16.13

MEDIA TERMINOLOGY & BASIC CALCULATIONSJOMC 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 exerciseTable 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?




CSI CBS 13650


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,





CSI CBS 13650


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,





CSI CBS 13650


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 exerciseTable I



Rating

CSI CBS 13650

Monday Night Football

NBC 7850

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?




Rating

CSI CBS 13650


NBC 7850

Castle ABC 15230


Are they the same scale?




Rating

CSI CBS 13650


NBC 7850

Castle ABC 15230


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




Rating

CSI CBS 13650 10.5


NBC 7850

Castle ABC 15230


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

CSI (13650 / 129900) x 100 = 10.50808 = 10.5




Rating

CSI CBS 13650 10.5


NBC 7850

Castle ABC 15230


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

Castle (??? / ???) x 100 = ???




Rating

CSI CBS 13650 10.5


NBC 7850 6.0

Castle ABC 15230 11.7


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?



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?






• Ex. 250 grps, 75 reach – What is the Frequency?• 250 / 75 = 3.3 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?




• 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




• 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




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




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


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




Magazine $50,000 160,000

Radio $50,000 260,000

TV $75,000 350,000

TOTAL $175,000 770,000

Universe (Adults 18 – 34) 250,000GRPs = (gross impressions / universe) x 100(Cost / Impressions) x 1000 = CPM




Magazine $50,000 160,000 64

Radio $50,000 260,000 104

TV $75,000 350,000 140

TOTAL $175,000 770,000 384





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


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

Media terminology & basic calculations 1.16.13

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