WELCOME TO MEDIAOCEAN TRAINING National Ratings 101 TRAINER: GARET LEONARD

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1 WELCOME TO MEDIAOCEAN TRAINING National Ratings 101 TRAINER: GARET LEONARD

2 Learning Objectives Why we use ratings data Key terms and concepts How ratings data is collected How ratings data is reported 2

3 Why We Use Ratings Data

4 Why ratings are important Audience ratings are the currency of the broadcast advertising industry; they are used to price commercial time The two primary uses for demographic ratings data: to predict how many people will watch a station or cable network during a given day and time, based on previous performance to report how many people watched a station or cable network during a given day and time, based on actual performance 4

5 TV Data Collection About Nielsen Nielsen is a research company which measures television ratings Nielsen was established in 1950 Nielsen reports a variety of demographics for National including (Broadcast, Cable, Syndication and Hispanic). They are available on a subscription basis. 5

6 TV Data Collection About Nielsen Data collection Sample - WHO will be measured Demographics - WHAT will be measured Time period - WHEN will they be measured Geographic area - WHERE will they be measured Methodology - HOW will they be measured 6

7 Key Terms and Concepts

8 Key Terms and Concepts Universe All households in a particular market who own at least one TV Also measured for each demographic category reported by the rating services 8

9 Key Terms and Concepts Demographics (Demos) Advertising is targeted to specific demographic categories Gender/Age groups, for example, Men or Adults National Audience Definition (NAD) demos report audience based on Race, Territory and Income) 9

10 Key Terms and Concepts In the fictional television universe below, 8 homes have televisions, represented by the antennas What is the TV Universe? 80%

11 Key Terms and Concepts Households Using Television (HUT) The percentage of homes using television at a given day and time People Using Television (PUT) The percentage of people in a demographic category using television at a given day and time In the fictional universe above, 4 homes are watching television, represented by the light bulbs. What is the HUT? 50% 11

12 Key Terms and Concepts HUT Homes Using Television The percentage of home/people using television at a given day and time The viewing level Varies by day and time period Varies by season FEB13 MAY13 JUL13 NOV13 M-F/6-9A M-F/9A-12N M-F/12N-3P M-F/3-6P M-F/6-7P M-F/7-8P M-F/8-11P

13 Key Terms and Concepts Share The percentage of homes or individuals who have their televisions on and are tuned to a particular program. The share is a percentage of the HUT In the fictional universe above, 4 homes are watching television. 2 are watching Program 1 and 2 are watching Program 2. What is the Share for Program 1? 50% 13

14 Key Terms and Concepts Rating A rating is the percentage of homes (or individuals) that have televisions tuned to a particular television or radio program. A rating is a percentage of the universe. 1 What is the Rating for Program 1? % 14

15 Key Terms and Concepts Impressions Impressions - the actual number of individuals (or homes) tuned to a program Same as the rating, but expressed as a whole number Ratings X Universe = Impressions Example if there are 1000 people in the universe and the rating is 25, (25%) 250 people are watching the program. 15

16 Key Terms and Concepts Relationship between Share, HUT and Rating Share X HUT = Rating.50 X 50 =.25 or 25% Rating/Share = HUT.25/.50 =.50 or 50% 16

17 Key Terms and Concepts Cost Per Point (CPP)/Cost Per Thousand (CPM) CPP - The cost to deliver 1 rating point for the target demographic, usually calculated by daypart Example Target demo - Adults American Horror Story costs $5000 Projected Rating for Adults =10 $5000/10 = 500 CPP CPM the cost to deliver 1000 impressions to the target demographic Example Target demo - Adults Adults Universe = 1000 Projected Impressions for Adults = 100 $5000/100 = $50 CPP 17

18 Key Terms and Concepts If the Buyer s CPP for Prime is $350, and the projected CPP is $500, the buyer must negotiate a lower rate, (or estimate a higher rating) to achieve the $350 CPP! 18

19 Key Terms and Concepts GRPs/TRPs Gross Rating Points/Total Rating Points Sum of ratings delivered by a given schedule Ratings X Units = GRPs AVERAGE HOUSEHOLD RATING NUMBER OF UNITS GRPS PROGRAM PROGRAM PROGRAM

20 Key Terms and Concepts Broadcast Calendar The Broadcast Calendar is used broadcasters, agencies and advertisers for billing and planning functions. The broadcast week starts on a Monday and ends on a Sunday. The Broadcast Year is broken into 4 quarters. Each quarter is made up of 13 weeks. 20

21 Key Terms and Concepts Projection Prediction of ratings for a future book; based on a standard formula -typically last year s HUT/PUT x Share from most recent book Agencies estimate future program performance for which research is unavailable. Agencies can store estimated information in Mediaocean without doing manual calculations. Universe and HUT numbers provided by Nielsen are stored in Mediaocean records. Estimated information for programs can be stored in the Program record. 21

22 How TV Data is Collected

23 TV Data Collection About Nielsen Data collection Sample - WHO will be measured Demographics - WHAT will be measured Time period - WHEN will they be measured Geographic area - WHERE will they be measured Methodology - HOW will they be measured 23

24 TV Data Collection WHO to measure (The Sample) Nielsen s sample panel, composed of a cross-section of homes that represent the market, captures the TV viewing information Household Universe Representative Sample

25 TV Data Collection WHAT to measure (The Demographics) Household and demographic categories Universe Ratings Shares HUTS 25

26 TV Data Collection HOW to measure (The Methodology) People Meter Household and Demographic data collected daily Markets (25+) Top 25+ markets Sample of HH in each market, depending on size of the market Active measurement, with household members logging in to record their viewing Installed on all TV sets, VCRs/DVRs Viewing monitored minute by minute; audience computed by average ¼ hour

27 TV Data Collection HOW to measure (The Methodology) Set Meter Set Meter Markets (31) Sample of HH in each market, depending on size of market Passive measurement, measuring set status (on/off) and tuning to program codes/signatures Only recording household data, not who exactly is watching All sets, VCRs/DVRs are measured Viewing monitored minute by minute; audience computed by average ¼ hour

28 TV Data Collection HOW to measure (The Methodology) Diary Measurement Diary Only Markets (154) Household and demographic data collected 4 times a year November, February, May, July (Major Sweeps) Used for smaller markets One diary for each TV set in HH HH keeps diary for 1 week of a 4-week sweep Measured only during sweep months: November, February, May, July Records viewing by ¼ hour HH with VCRs/DVRs receive an 8-day diary to include playback

29 TV Data Collection WHEN to measure WEEKLY MONTHLY 29

30 How Data is Reported

31 How Data is Reported WEEKLY (Typically available 15 days after the end of the week) Average Commercial Minute (ACM) Nielsen Program Information (NTI) Nielsen Time Period (NTI-T) Hispanic (HPW) MONTHLY (Typically available days after the end of the month) National Audience Definition (NAD) National Audience Definition Cable (CNAD) 31

32 Viewing Streams Nielsen measures viewership in several ways, allowing advertisers and agencies to choose how to report demographics. Advertisers and agencies can choose to use Program Average data, which averages the number of viewers during the entire program, including commercial breaks. They can also choose to use Average Commercial Minute data, which reports data by program using an average of all the minutes that commercials aired. This excludes the minutes the program aired. Because of recording technology (DVR, Tivo), Nielsen measures viewership including one to seven days after the airing. How to count this viewing is a hot topic in the industry today. Advertisers want to pay for Live data. Networks want to charge for Live+ because the numbers are larger. 32

33 Viewing Streams Program Average Live data Program Average Live Plus Same Day data. Program Average Live Plus One Day data. Program Average Live Plus Two Days data. Program Average Live Plus Three Days data. Program Average Live Plus Seven Days data. Average Commercial Minute data Average Commercial Minute (ACM) Live data. ACM Live Plus Same Day data. ACM Live Plus One Day data. ACM Live Plus Two Days data. ACM Live Plus Three Days data. ACM Live Plus Seven Days data. 33

34 Class Recap In this class you learned: Why we use ratings data Key terms and concepts How ratings data is collected How ratings data is reported 34

35 WELCOME TO MEDIAOCEAN TRAINING National Ratings 101 TRAINER: GARET LEONARD

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