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Audience Measures and Formulas: Part II

This area contains numerous formulas you can use for the measuring of cable audiences.
Click here for Part 1

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) =
GRPs (%)  x  Universe (000)
 
   
Viewers Per Viewing Household  (VPVH)  
Estimated number 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 Unity Cost  /  AA (000)
 
Example:  
Media Cost / Gross Impressions (000)
$1.5 Million / 85,000 = $17.6
 
   
Cost Per Point (CPP)  
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.
 
   
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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