### Transcription

Media Math

Table of Contents Universe Estimate / CoverageHouseholds Using Television (HUT) / Persons Using Television (PUT)ShareAverage AudienceRatingsGross Rating Points (GRPs)ReachFrequencyViewers per Viewing Household (VPVH)Cost per Thousand (CPM) / Cost per Point (CPP)Industry Definitions & TerminologyAbbreviations & Demographic Derivations

Universe Estimate / Coverage

Universe Estimate (U.E) Total persons or homes in a given populationUniverse Estimate Impressions (000)Rating %

Coverage The percentage of homes or persons able to receive an individual network or channelCoverage Rating % Coverage Projection (000)Coverage Universe Estimate

Households Using TV / Persons Using TV

Households Using Television(HUT) The percentage of Total Television Households that are viewing Televisionduring a given time periodHUT % HH Rating %Share %OrHUT % # of Households with TV Sets in useTotal Households Universe

Persons Using Television(PUT) The percentage of Total Persons in a particular demographic group that are viewingTelevision during a given time periodPUT % # of Persons Viewing TVTotal Person UniverseorPUT % Demo Ratings %Demo Share %

Share

Share The Percent of Households Viewing Television that are tuned to a particularprogram/network during average minute of program or daypartShare RatingHUT %Share Can Help you Calculate Rating or HUT Rating Share x Hut HUT RatingShare

Average Audience

Average Audience (AA) Average Audience reflects viewing for an average minute to a program and is anaverage of the audience at the specific minute (Min. 1, Min. 2, Min. 3, etc ) “AA” can be expressed as a Rating % or Projected Audience (000)Average Audience Projection (000) Rating % x Total Universe (000)OrAA Projection (000) Viewers Per Viewing Household (VPVH) x HH Projections (000)Note: Impressions can be added together across demos, dayparts or stations/sources(ex: M18-49 F18-49 A18-49)

Ratings

Ratings (Live) The percentage of a specific population group which is tuned to theAverage Minute of a Program or DaypartOne Rating Point 1% of the PopulationFive Rating Points 5% of the PopulationTen Rating Points 10% of the PopulationRatings are NOT additive across different Demos;Ratings must be weight-average when combined

Average Audience Rating % The estimate size of the Television audience relative to the total universe,expressed as a percentage. The percent of all TV Households or persons tuned toa specific stationAA Rating % Share % x Households Using Television % (HUT %)OrAA Rating % Average Audience Projection (000)Universe Estimate (000)OrAA Rating % Gross Rating Points % (GRPs %)Number of Spots

Ratings by Stream – Program Ratings With the increase in time-shifted viewing, Nielsen measures multiple types ofratings that include DVR viewing these are called “streams” Live Same Day The number of households that watched a program either while it aired orwatched it via DVR on the same day of the program was broadcast Live 7 The number of households that watched a program either while it aired orwatched it via DVR within 7 days of its original airingLive SD & Live 7 ratings are based on average program ratings; not commercial ratings

Ratings by Stream – Commercial Ratings Agencies / Clients demanded a more precise measurement of their commercials,so in 2007 Nielsen released commercial ratings C3 (Commercial Rating 3 day DVR viewing) Measure of the commercials watched both live and three days after originalairing with DVR playback C7 (Commercial Rating 7 day DVR viewing) Measure of the commercials watched both live and seven days afteroriginal airing with DVR playbackDoes not measure specific commercials; average rating of commercials within the programC3 is the National Currency – what the dollars are guaranteed on

Gross Rating Points (GRPs)

Gross Impressions The total number of Households, or Persons, exposed to an advertising schedule Gross Impressions Gross Rating Points % (GRPs %) x Total Universe (000)

Gross Rating Points (GRPs) The sum of all ratings for all programs in an advertising schedule. One rating pointequals one percent of total audience (universe)GRPs Impressions (000)Universe EstimateorGRPs Rating % x Number of SpotsorGRPs Reach % x Frequency The sum of all rating points in a given scheduleTakes into account duplicationCan exceed 100Describes the amount of media weight

Reach

Reach The number of different households or persons who are exposed at least onceto a program, daypart, or advertising schedule over a given period of time; Alsoreferred to as Cume, Unduplicated Audience or Net AudienceReach Gross Ratings Points (GRPs)Average Frequency Does not take into account duplicationUsually expressed as a percentCan never exceed 100%A one time rating is a reach

Reach CurveReach is maximized btwn 100-150 GRPs;Additional GRPs will hit the same consumers(frequency) and less new ones100908070% REACH 6050403020100050 100 150 200 250 300 350 400 450 500GRP’S

Frequency

Average Frequency The average number of times that each Household (or Person) is exposed to anadvertising schedule or campaign. (Expressed as an absolute number)Avg. Frequency Gross Rating Points (GRPs)Reach

Viewers per Viewing Household

Viewers per Viewing Household(VPVH) A measure of a program’s audience composition (or profile) relative to theHouseholds tuned to the programVPVH Persons or Demographic Projection (000)Household Projection (000) Shows the audience skew of a program/networkCan be expressed in Hundreds (.10) or Thousands (.100)Is additive between demographicsUsed in estimating a program’s target audience

Average Hours of Viewing HUT / PUT converted to the average hours of viewing per home or per personAverage Hours of Viewing Duration of Period x Households Using Television % (HUT %)

Cost Per Thousand / Cost Per Point

Cost Per Thousand (CPM) The cost of delivering One Thousand Impressions within a defined population groupCPM Media Cost (in Dollars)Gross Audience (000)orCPM BucksSchmucks Basic Formula of negotiation among cable networks Measures efficiencies of media schedule Allows for cross media evaluation

Cost Per Point (CPP) The cost to deliver a single rating point (1% of the defined population)CPP Average Unit CostRating %OrCPP Total Schedule CostGross Rating Points % (GRP %)

Industry Definitions & Terminology

Viewing Sources Definitions Broadcast Networks - Tuning to any ABC, CBS, NBC, FOX, iON, CW, MNT, Estrella, Unimas,Telemundo, Univision broadcast network affiliated station. Other Broadcast - Tuning to a broadcast station identified as Independent from any of the abovelisted broadcast networks. Independent broadcast networks include Emerging networks such asAzteca America. PBS - Tuning to all station affiliated with the Public Broadcasting Service. Premium Pay - Tuning to Premium Pay Cable services (Encore, HBO, Multimax, Showtime andStarz) Ad-Supported Cable - Tuning to all advertiser supported cable networks. Only includes CableNetworks that run advertisments. (AMC, CNN, ESPN, TNT, etc ) All Other Cable – Tuning to those cable networks that are neither ad-supported nor premiumpay. Includes pay per view, interactive channels, home shopping channels and audio only feedsbut excludes the Disney Channel All Other Tuning – Effective with installation of the A/P meter in 7/05, reports tuning to adistributor that could not be identified due to a lack of encoding and/or monitoring.

Local Terminology Designated Market Area (DMA) DMAs are a way of designating particular geographic markets and are often ranked by thesize of the population. Interconnect A large group of cable systems within a DMA that are “connected” together. Interconnectgives advertisers the option to reach all cable households within a given market with onebuy, one contact and one tape. Head-end(s) The physical location(s) from which a cable system process signals and broadcasts.

Abbreviations & Demographic Derivations

Commonly Used AbbreviationsNTI (Broadcast)Nielsen Television IndexNSI (Syndication)Nielsen Syndication IndexNHI (Cable)Nielsen Home Video IndexNHTI (Hispanic TV)Nielsen Hispanic Television IndexADSAlternate Delivery SourceDBSDirect Broadcast SatelliteDMADesignated Market AreaMSOMulti Systems OperatorSMATVSatellite Master Antenna TelevisionAOTAll Other TuningTELCOTelevision Cable Operator

Demographic DerivationsTo DeriveComputation2-52-11 minus 6-1135-4918-49 minus 18-3425 25-54 plus 55 35 18 minus 18-3450 18 minus 18-4965 18 minus 18-6450-6435-64 minus 35-4918-6418-34 plus 35-6425-6425-54 plus 55-6418-2418 minus (25-54 plus 55 )25-3418-34 minus 18-2450-54(18 minus 18-49) minus 55 55-6455 minus 65 25-4918-49 minus 18-2435-54(18 minus 18-34) minus 55 12-2412-17 plus 18-2418-5418-24 plus 25-54

For More Information Visit Us OnlineTheVAB.comJoin Our Email ListFollow Us:@VideoAdBureauFollow Us:VAB (Video Advertising Bureau)