TV Basics Online - Television Bureau of Advertising

TV Basics
Research 101 –
Media Terminology & Formulas
Audience Composition
The percent that a specific demographic segment is of a larger demo
segment. Usually calculated using either Persons 2+ or Adults 18+ as
the base, it can be calculated using either impressions or VPVHs.
FORMULA
A25-54 (000) / A18+ (000) =
The A25-54 % audience composition of Total Adults
Cost Per Thousand (CPM)
Advertisers’ cost to deliver one thousand viewer exposures to
a commercial. The total cost for one or a series of commercials is
divided by the projected audience in thousands.
For example, if the cost of a commercial is $50,000 and the projected
audience is 4,606,000, then the CPM equals $10.86 ($50,000/4,606).
FORMULA
Media cost / Impressions in thousands = CPM
Cost Per Rating Point (CPP)
An advertising cost to deliver a single rating point. CPP is calculated by
dividing the cost of running a commercial by the size of the audience,
expressed in rating points.
For example, if the cost is $50,000 and the rating for a program is 12,
then the cost per point is $4,166.67 ($50,000 divided by 12).
FORMULA
Average unit cost / Rating (%) = CPP
Total schedule cost / GRPs = CPP
Viewers Per Viewing Household (VPVH)
The number of viewing persons per tuning household. Usually reported as
“per 1,000 viewing households.” VPVH is not a percentage, it is a ratio of
a demographic segment to households and represents an actual number
of people.
For example, if there are 13.5 million households tuned to a program
and the Women 18-49 VPVH is .43, then there are .43 W18-49 in each
of these 13.5 million households.
FORMULA
Persons Projection / Household Projection = VPVH
37
Research 101 –
Media Terminology & Formulas
Reach
The number of different individuals or households exposed at least once
to a program or commercial across a stated period of time. It is expressed
as a percentage of a given universe. A household or person is counted
once, no matter how many times the telecast has been viewed. Also
called cumulative or unduplicated audience.
FORMULA
GRPs (%) / Frequency = Reach
Frequency
Average number of times a household or person viewed a given television
program, station or commercial during a specific time period. For instance,
a schedule of 150 GRPs divided by the percent of homes reached (70%)
would deliver a frequency of 2.1.
FORMULA
GRPs (%) / Reach (%) = Frequency
Reach & Frequency Example
Schedule = 150 GRPs
Total DMA Households = 10
Channel 2 HH News Viewing (M-F 6-7PM) = 7 out of a 10 HH universe
M, Tu, W * M, Th * W, F
Tu W, Th * Th, F Tu, W, F
*Household had no viewing to Channel 2 News
In this example, Ch. 2 News reach is 7 HH out of the DMA universe of
10 HH, or 70%. Frequency is calculated by dividing the 150 GRPs by
the 70% reach, yielding an average 2.1 frequency.
Each household exposure to the commercial is counted in the GRP total,
but any duplication of viewing by the same household is eliminated in
the reach calculation because each household is counted only once.
Commercial XYZ has been seen in 7 out of 10 households an average
of 2.1 times.