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Audience Measures and Formulas: Part II

Gross Average Audience (GAA Rating)
The estimate which reflects the sum of all tuning and viewing minutes to a program. Tuning and viewing to the same minute of program (or its repeat telecast) is counted each time.

GRPs
The sum of all ratings for all programs in an advertising schedule. One rating point equals one percent of total audience (universe).

GRPs (%) =
Impressions (000) / Universe Estimates

Rating (%) x # Spots

Reach (%) x Frequency

Gross Impressions
The total number of households, or persons exposed to an advertising schedule.

Gross Impressions (000) =
GRP’s (%) x Universe (000)

VIEWERS PER VIEWING HOUSEHOLD (VPVH)

Estimated numbers of viewers, usually classified by age and sex, recorded as comprising the audience within those households turned to a given station or program or using television during a particular time period.

VPVH =
Persons Projection (000) / Household Projection (000)

Example:
Persons Projection (000) / Household Projection (000)
22,191 M2554 (000) / 72,049 HH (000) = .308 M2554 VPVH

Cost Per Thousand (CPM)
The cost to deliver 1,000 people or homes. The figure is obtained by divided the cost of an ad by the size of the audience in thousands.

CPM =
Media Cost / Gross Impressions (000)

Average Unit Cost / AA (000)

Example:
Media Cost / Gross Impressions (000)
$1.5 Million / 85,000 = $17.6

COST PER POINT

The cost to deliver a single rating point (1% of the defined population). This figure is obtained by dividing the total cost by the number of rating points.

CPP =
Average Unit Cost / Rating (%)

Total Schedule Cost / GRP’s (%)

REACH & FREQUENCY

Reach/Cume/Cumulative Audience
The number of different homes/people exposed at least once to a program or commercial across a stated period of time. Also called the cumulative or unduplicated audience.

The homes/people exposed two or more times are only counted once. The maximum reach, therefore, is 100% of TV households or persons.

Reach (%) =
GRP’s (%) / Frequency

Example:
GRP’s (%) / Frequency
300/5.0 = 60%

Frequency
Refers to the average number of times households or persons viewed a given program, channel, or advertisement during a specific time period.

Frequency =
GRP’s (%) / Reach (%)

Example:
If a group of programs achieved 30 GRPs and a CUME of 20, then the average frequency would be 1.5 exposures per person or household.

Frequency Distribution
An array of reach according to the level of frequency delivered to each group.

Example:
3+ reach (saw program or commercial at least three times)

Distribution Array: 2+,3+,4+,5+,6+,etc…

AVERAGE HOURS OF VIEWING

Occasionally it is necessary to convert HUT/PUT% data to average hours of viewing per homes/person. The two measurements are simply different ways to express the same statistic.

AVG. HOURS =
Duration of the period x Hut %

Example:
Monday-Sunday 7-11pm duration is 7days x 4 hours (or 28 hours). If we assume a 70% HUT….

28 hours x .70 = 19.6 hours/week

Average Hours: Minutes would be 19 + (.6 x 60 min) = 19 hrs, 36 mins.

DEMOGRAPHIC DERIVATIONS

To Derive...Computation...
Age 2-52-11 minus 6-11
Male teenstotal teens minus female teens
35-4918-49 minus 18-34
25+25-54 plus 55+
35+18+ minus 18-34
50+18+ minus 18-49
65+18+ minus 18-64*
50-6435-64 minus 35-49*
18-6418-34 plus 35-64
25-6425-54 plus 55-64
18-2418+ minus (25-54 plus 55+)
25-3418-34 minus 18-24*
50-54(18+ minus 18-49) minus 55+
55-6455+ minus 65+
25-4918-49 minus 18-24*
35-54(18+ minus 18-34) minus 55+
12-2412-17 plus 18-24*
18-5418-24 plus 25-54
* derivable

COMMONLY USED ABBREVIATIONS

NTI (Broadcast):Nielsen Televion Index
NSI (Syndication):Nielsen Syndication Index
NHI (Cable):Nielsen HomeVideo Index
NHTI (Hispanic TV):Nielsen Hispanic Television Index
ADS:Alternate Delivery Source
DBS:Direct Broadcast Satellite
DMA:Designated Market Area
GRPs:Gross rating points
HUT:Households Using TV
MSO:Multiple Systems Operator
MDS:Multipoint Distribution System
R&F:Reach & Frequency
SMATV:Satellite Master Antenna Television

BROADCAST SWEEP MONTHS

November
February
May
July

CALCULATING NATIONALIZED CABLE RATINGS FROM A CABLE UNIVERSE

If FX has a .8 HH cable rating and we know that FX Coverage Universe (000) is 65,070…

1. Calculate the Coverage Impressions…
CVG RTG % = Coverage Impressions (000) / Coverage Universe (000)
.8 = Coverage Impressions (000) / 65070
Coverage Impressions = 52,056

2. Impressions are Constant…
If national universe for cable is 102,200 (000)
RTG % = Impressions (000)/ Universe (000)
RTG % = 52,056 / 102,200
RTG% = .5

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