Chapter 8
Using Television
Chapter Objectives
After reading this chapter you will understand:
1.
2.
3.
4.
5.
The diversified nature of the television industry
The multiple roles of television as an advertising medium
The changing position of network television
Syndicated rating services and television research methodologies
The various segments of television viewing
Chapter Overview
Television is truly a multidimensional medium with the consolidation of ownerships, blending of
technology, and the co-producing of programming. As the future penetration of digital television
makes interactivity a reality, both advertisers and programmers will have to adapt to significant
changes in the role of audiences with the medium. From a marketing standpoint, the television
medium now exhibits wide diversity of advertising and programming opportunities made
possible by a number of related broadcast and cable entities. From local cable programming to
nationally broadcast events such as the Super Bowl, each segment of the television industry has
special characteristics which are the subject of this chapter.
Lecture Outline
1. Introduction
A. An overview of the television industry sets forth advantages and caveats for marketers:
1) Pros:
a. Television reaches 99 percent of all U.S. households and is particularly popular
with market segments that are primary markets for advertisers.
b. Television’s combination of color, sound, and motion offers creative flexibility
for virtually any product message.
c. Despite recent audience declines, television remains extremely efficient for large
advertisers wishing to reach a mass audience. Cable outlets and local broadcast
stations add a local or regional component to national television schedules.
d. Government-mandated moves to digital television will open opportunities for
advertising and programming by early 2009.
2) Cons:
a. The television message is perishable and easily forgotten without expensive
repetition.
b. The television audience is fragmented and skewed toward lower-income
consumers. Daily viewing time declines significantly as income increases.
c. Shorter spots, some as short as 15 seconds, have contributed to confusing
commercial clutter.
d. With remote control use, channel surfing by viewers, and the VCR and DVR
(digital video recorder), the amount of time spent viewing commercials by the
average television user has greatly reduced.
B. Television had humble beginnings.
1) First thought of by Philo Farnsworth in the 1920s in Idaho, the idea was for an allelectronic system.
2) In 2008, the medium will mark its 60th anniversary.
a. The medium continues to exhibit dramatic change and innovation.
b. By February 2009, the government has mandated that the medium must introduce
digital technology, bringing even more innovations in both advertising and
programming.
c. Television has long been the most influential medium, even with those who do
not watch it.
3) Quantitative dimension: approximately 99 percent of households have at least one
television set.
a. Americans spend twice as much time with TV than with radio and 10 times more
time than with newspapers; the average household viewing is more than 8 hours
daily.
4) Qualitative dimension: television is definitely the medium for news, entertainment,
and advertising.
a. According to a TVB (Television Bureau of Advertising) survey, television is the
primary source of news by over 70 percent of watchers, with newspapers second
at 12 percent.
b. Television’s positive credibility carries over to television advertising, rating
highly in as an authoritative, exciting, influential, and persuasive medium.
5) The complexion of television has changed over the years, moving from a mass
medium to a niche medium.
a. The trend began with the VCR and moved toward more interactivity with the
Internet becoming a major catalyst for two-way television communication.
6) Television must continue to move toward more interactivity to combat the appeal of
the Internet and to be successful in the future.
2. Television As An Advertising Medium
A. Introductory comments.
1) The purpose of television as an advertising medium is to function as an audience
delivery system.
a. The real product of television is not programming and personalities, but in the
manufacture, collection, and distribution of viewers to advertisers.
2) The first television commercial was aired in the summer of 1941 following a Federal
Communications Commission (FCC) approval of 10 commercial television
licenses.
3) Program options are growing at a high rate through not only network affiliate stations,
but also independent stations and cable television outlets.
4) Cable networks growth.
a. By the 1980s, cable television had greatly expanded the number of stations, which
viewers could receive.
b. By the 1990s, cable networks had evolved and began to compete with broadcast
networks for advertising by the development of original programming, making
available 50-plus channels.
c. Cable network programming began producing highly-acclaimed programs, which
competed for prime-time audiences.
d. The result was television fragmentation, with both advertisers and audiences
being drawn to this new programming.
5) Today’s television audience is fragmented over dozens of channels and thousands of
other new media choices, including video games, CD-ROMs, and the Internet.
B. With digital capabilities, networks can deliver a number of services to a household over
the same conduit.
1) Programming options will be greater in number and advertising can be tailored to
individual buying preferences of individuals on an interactive basis.
2) The traditional relationships between the television industry and its advertisers will
change.
3) Even with technological changes ahead, television remains a primary medium for
advertisers.
4) Creative flexibility is offered.
5) Television encompasses all of the senses, using sight, sound, and motion, 24-hours a
day.
6) It can reach all lifestyles.
7) A large number of advertising formats available.
C. Limitations of television include:
1) Cost—television is a very expensive medium. Cost is high in network television
advertising, local and cable advertising, and production costs.
a. On a CPM basis, however, television is less costly than print media, although
fragmentation and increased options for audiences will increase the CPM.
b. It is critical to not only consider the cost of television production but also the cost
associated with more creative commercials.
2) Clutter—refers to any nonprogram material carried during or between shows.
a. Commercials represent 80 percent of the clutter; the balance being public service
and program announcements.
b. The commercials time has grown (15 minutes per hour) and the length is shorter,
going from primarily 30-second spots in 1980 to 15 second or less by 2005;
thereby increasing the audience perception of advertising clutter.
c. To combat this problem and break through the commercial clutter, some television
networks have experimented with reducing the number of commercials and
advertisers, allowing some advertisers to buy all the commercial time within a
particular program.
3. The Rating-Point System
A. The basic measure of television is the rating point.
1) The rating point (TV) is the percentage of a population (either TV households or a
specific group such as women 18–49 years of age) in a market a television station
reaches with a program.
2) Basic calculation:
a. Rating = program audience/total TV households.
b. The rating, expressed as a percentage of some population (usually TV households),
gives the advertiser a measure of coverage based on the potential of the market.
3) When ratings are expressed as percentages of individuals, the same formula is used,
but the population is some target segment rather than households.
a. A household rating of 12 for a program means that 12 percent of all households in
a particular area tuned their sets in to that station.
b. Prime-time network programs usually achieve a rating of between 6 and 16, with
the average being less than 9.
B. Gross rating points (GRP), calculated by multiplying the insertions by the ratings, are
where the weight of a schedule is measured in terms of the total ratings for all
commercial spots bought.
*****NOTES: Use Exhibit 8.2 Here*****
1) Advertisers also use GRPs as the basis for examining the relationship between reach
and frequency. Formulas are:
R x F = GRP or
GRP = F and GRP = R where R = reach and F = frequency
R
F
2) To use these relationships, you must know (or estimate) the unduplicated audience.
When GRP is divided by reach (R) or frequency (F); we can estimate the percentage
of the target market reached and the number of times each audience member was
reached, respectively.
*****NOTES: Use Exhibit 8.2 Here; See page 263 for calculations *****
C. One of the principal merits of the GRP system is that it provides a common base that
proportionately accommodates markets of all sizes. However, GRPs cannot be compared
from one market to another unless the markets are of identical size.
1) The advertiser has to decide how much weight (how many GRPs) to place in their
markets and for how long a period.
2) The answer to this may be whether the goal is reach or frequency.
3) To estimate the cost of television advertising on several shows, advertisers use the
cost per rating point (CPP) calculation.
The formula is:
CPP = cost of schedule or commercial
GRPs
*****NOTES: Use Exhibit 8.2 and 8.3 Here; See p. 264 for calculations on CPP*****
D. Limitations:
1) Should not be used to compare markets of different size (intermarket size
comparison).
2) It does not tell us the number of prospects being reached by a program.
3) GRP, by itself, cannot tell us how effectively a broadcast schedule is performing.
4)
4. Share of Audience
A. Share of audience (or simply, share) is the percentage of households using TV that are
watching a particular program.
1) Share of audience is often used to determine the success of a show. It is used by
advertisers to determine how a show is doing against its direct competition.
2) The rating calculates the percentage of total TV households that are tuned to the
program.
Formula: Rating = show viewers x 100 = rating
total TV households
3) The share calculates the percentage of households using television (HUT) that are
tuned to the program.
Adjusted formula: Share = show viewers x 100 = share
HUT
(NOTE: HUT indicates the actual number of viewers.)
5. The Many Faces of Television
A. Each form of television (i.e., network television, cable, syndicated programs, etc.) has its
own advertising pricing structure, programming, target audience, and rating expectations.
1) The use of television as a personal medium is further demonstrated by the number of
multi-set households.
2) More diverse advertising opportunities will occur through technological advances and
as the wireless world advances.
3) The process of television media planning and buying is extremely complex.
*****NOTES: Use Exhibit 8.4 Here*****
6.
Network Television
A. Erosion of audiences for top-rated network shows continues.
1) This probably occurs because of the proliferation of television options.
2) The Big Four (ABC, CBS, FOX, and NBC) have surprisingly sustained share levels
in spite of the proliferation of television options.
*****NOTES: Use Exhibit 8.5 Here*****
B. Clearance and affiliate compensation.
1) Networks are comprised of local stations that contract to carry network programming.
2) The four major networks have affiliates in most television markets.
a. The newest networks are WB and UPN. They have affiliation agreements with
smaller stations in most markets.
3) Networks sell national advertising on the basis of station clearance.
a. Network clearance is expressed as the percentage of the network’s station lineup
that has agreed to clear their schedules for network programming.
4) Another primary factor in the relationship between networks and affiliates is station
compensation.
a. Compensation is a system whereby networks share advertising revenues with their
affiliates in return for using local station time for their programs.
b. As the cost of network programming has increased and the audience levels have
fallen, the relationship between networks and stations over compensation has
become contentious.
1. Networks are demanding that local affiliates share in the cost of this
programming because the value of a station’s local advertising spots is a result
of the audience gained through popular network programming.
2. Many local stations are now reviewing the value of the cost to continue
affiliation with national networks.
C. Network ownership.
1) Most networks are relatively small parts of larger conglomerates.
2) They are usually not among the most profitable units of the conglomerates.
3) Mergers and acquisitions raise troubling questions regarding the free flow of news,
restriction of competition, the impact on rates, and internal conflict of interest among
units.
4) Congress is examining ownership questions that might lead to control that is
excessive.
D. Network commercial pricing and declining audience shares.
1) Television is in the business of delivering prospects to advertisers.
2) High costs are affecting the commercial pricing structure.
3) The average cost of a 30-second spot is currently $150,000 on the four major
networks.
a. Some spots cost over $550,000.
4) Network advertising revenues are growing significantly, but media buyers complain
that these increases are more a result of more commercials (clutter) and unjustified
rated increases that have resulted in higher CPMs.
E. Block programming.
1) The television audience is fickle.
2) Research has consistently shown that shows do not stand on their own, but are greatly
influenced by:
a.
b.
c.
d.
Preceding shows called the lead-in.
The total daypart schedule, called a block.
Strong lead-ins are very important and are closely watched by local stations.
Strong lead-ins responsible for escalating prices paid for by off-network
syndicated programs.
e. Network programmers are very aware of the ebb and flow of audiences.
f. Pricing of new network shows is dependent on their placement in the network
schedule.
g. A new show sandwiched between older but successful shows is in a hammock
position.
h. Once a new show is on the air, it is judged by how it keeps the audience from its
lead-in and sustains the strength of the block.
F. Network television advertising criteria. Three factors considered to determine buying
decisions:
1) Demos—demographics of television audiences becoming more important than just
the size of the audience.
2) CPMs—CPM levels; other advertisers driven by cost considerations, evaluating cost
efficiencies and CPM levels on an equal basis with audience demographics.
3) Demand—demand for certain programs. Not only a function of demographics and
CPM, but also of qualitative factors created by a special event, personalities, or
publicized final episodes.
4) Other factors:
a. Avails (available times)—broadcast media do not have the advantage of flexible
advertising inventory.
1. Networks must ration prime commercial spots among major advertisers,
combining top-rated avails with less popular ones.
2. Advertisers buy package plans, placing commercials across the entire
schedule.
b. Up-front buys. Each May, major advertisers begin the negotiation process to buy
commercials on the network prime-time lineup for the coming fall season. Most
prime-time spots bought during this period. Has become complex with a number
of trends:
1. Greater demand for time. A very competitive marketplace.
*****NOTES: Use Exhibit 8.6 Here*****
2.
Globalization. Positioning in the context of global media plans of
multinational clients.
3. Special events. Time demands brought by events like political elections and
the Olympics.
c. Scatter buys. The up-front season is followed by scatter plan buys throughout the
year, usually quarterly.
1. Designed for larger advertisers that want to take advantage of changing
marketing conditions or for smaller advertisers shut out of up-front buys.
2. Sell at a higher CPM because there is less inventory and smaller advertisers
don’t have the leverage to negotiate better CPM levels.
G. Negotiation.
1) This is the key to network buying.
2) Declines in network rating and share levels have created a more contentious
atmosphere.
3) Negotiators look for time across a number of television options to reach a particular
target market.
4) Small differences can make big differences in profits and revenues with respect to
rating points.
H. Make-goods.
1) Make-goods are concessions to advertisers for a failure to achieve some guaranteed
rating level.
a. Usually offered on the basis of total GRPs for an advertiser’s television
advertising schedule.
b. Usually take the form of future commercials making up for rating shortfalls.
2) Make-goods are now a major contention between agencies and the networks.
3) The make-goods put pressure on networks to deliver what they have promised—the
audience.
7. Spot Television
A. When national advertisers buy from local stations, the practice is known as spot
television or spot buys.
1) The idea is to spot coverage in certain markets rather than blanket coverage.
2) The disadvantage is that it requires a great deal of planning and paperwork because
everything is bought on a one-to-one basis.
a. It is more costly on a CPM basis than network buys.
3) Spot advertising is very competitive; more than 1,000 local stations, plus several
thousand cable outlets competing for spots.
4) Spot market expenditures will be relatively flat as advertisers move dollars toward
other forms of local television (as in cable).
5) Most spot advertising is placed through station representatives or reps.
a. The rep is paid a commission by the station based on the time sold; and may have
100 or more station clients.
b. Commission ranges from 5–10 percent depending upon station size.
c. Unlike a real network, stations are linked only through being clients of a
particular rep; they are called nonwired networks.
d.
Nonwired concept is simply a means of providing buying efficiency and
convenience for spot advertisers.
6) The rep’s role in the spot market will probably change significantly as consolidation
in the television industry accelerates. Some station groups are large enough to support
their own national sales force.
7) The primary purposes of the spot buy are:
a. To allow network advertisers to provide additional GRPs in those markets
with the greatest sales potential.
b. To provide businesses with less than national or uneven distribution a means of
avoiding waste circulation incurred by network television.
c. To allow network advertisers control for uneven network ratings on a market-bymarket basis.
d. National advertisers can use spot advertising to support retailers and provide
localization for special marketing circumstances.
*****NOTES: Use Exhibit 8.7 and 8.8 Here*****
B. Defining the television coverage area.
1) Television research uses three levels of signal coverage to designate station coverage
of a market area.
a. Total survey area is the largest area over which a station’s coverage extends.
b. Designated market area (DMA) is a term used by A.C Nielsen Company to
identify those counties in which home market stations receive a preponderance of
viewers.
c. Metro rating area corresponds to the standard metropolitan area served by a
station.
C. Local television advertising.
1) Television advertising is increasingly purchased by local advertisers.
2) Buying and scheduling spot and local TV time. Media buyers must be familiar with
the specifics of both of these aspects.
3) The TV day. Typical daypart designations are:
a. Morning: 7:00–9:00 a.m., Monday through Friday.
b. Daytime: 9:00 a.m. – 4:30 p.m., Monday through Friday.
c. Early fringe: 4:30–7:30 p.m., Monday through Friday.
d. Prime-time access: 7:30–8:00 p.m., Monday through Saturday.
e. Prime time: 8:00–11:00 p.m., Monday through Saturday and 7:00–11:00 p.m.
Sunday.
f. Late News: 11:00–11:30 p.m., Monday through Friday.
g. Late fringe: 11:30–1:00 a.m., Monday through Friday.
4) Preemption rate. A considerable portion of spot TV advertising time is sold on a
preemptible (lower-rate) basis, whereby the advertiser gives the station the right to
sell a time slot to another advertiser that may pay a better rate for it or that has a
package deal for which that particular spot is needed. Forms include:
a. Nonpreemptible.
b. Immediately preemptible (IP).
c. Preemptible with two weeks notice.
5) Other forms:
a. Special features. News telecasts, weather reports, stock market reports, etc., are
often sold at a premium price.
b. Run of schedule (ROS). Advertisers can earn a lower rate by permitting a station
to run commercials at its convenience, whenever time is available, rather than in a
specified position.
c. Package rates. Different periods of the day are sold as a package.
d. Product protection. Every advertiser wants competitive products as far away as
possible from their time slots. Most stations will attempt at least a 5-10 minute
break in between competitive commercials. The only guarantee is that they will
not run them back-to-back.
e. Scheduling spot and local time.
1. Rotation of schedule refers to the placement of commercials within a schedule
to get the greatest possible showing.
2. Horizontal rotation spreads spots throughout the week.
3. Vertical rotation spreads spots throughout the day or during a program.
8. Television Syndication
A. Television syndication is the sale of television programming on a station-by-station,
market-by-market basis.
1) Major syndicated shows are sold on an advertiser supported or barter basis.
2) Barter syndication refers to the practice of offering shows to stations in return for a
portion of the commercial time in the show, rather than selling the show for cash.
3) A majority of the commercial time on syndicated shows is packaged into national
units and sold to advertisers.
4) Some spots are pre-sold on a national basis and the remaining time sold to local and
spot advertisers.
5) Syndication began when producers sold their canceled network shows to stations for
inexpensive “fillers” during late afternoon or other time period’s not programmed by
the networks. During this time it was a minor portion of television advertising.
6) Syndication accounts for close to $4 billion in advertising revenues and major
syndicated shows provide coverage comparable to the broadcast networks.
7) The key to syndication’s success is quality programming. The types include:
a. First-run—made for syndication programs.
b. Off-network syndication—reruns of former network shows.
c. Off-network shows reach more predictable demographic segments than first-run
products.
8) The three-tier pricing structure includes:
a. The top-10 blockbusters (most expensive, but proven).
b. Fall short of the top 10 but have sizable, loyal audiences (medium pricing).
c. Lower tier of talk shows and less-popular reruns (low pricing).
9) The demand for syndicated shows is driven by television’s insatiable demand for all
types of programming.
a. It is expected that broadcast syndication will surpass cable networks in achieving
significant levels of audience reach.
b. Some stations have moved to sign long-term contracts with program producers to
guarantee access to certain shows.
B. The audience for syndicated television.
1) Syndication has some of the same characteristics as cable.
2) Audiences are delivered; however, these audiences are spread over several shows.
3) Syndicators sell programs on the basis of multiple airings known as gross average
audience ratings.
4) The future of syndication is very bright because local stations find it very lucrative.
a. More commercials can be sold in syndicated shows; network shows allow the
station to sell 1 minute of commercial time and syndicated shows allow 6–12
minutes of commercial time.
5) Top ten syndicated television advertisers include large package-goods companies and
pharmaceuticals.
*****NOTES: Use Exhibit 8.10 Here*****
C.
6) Syndications will be a major advertising vehicle for the foreseeable future.
Stripping.
1) Popular shows are “stripped” across a time period for an entire week (i.e., Wheel of
Fortune appears at the same time Monday through Friday).
a. This practice is cost effective and builds a consistent audience for selling
commercials to potential advertisers.
9. Cable Television.
A. Cable systems began in Pennsylvania in the 1940s. The systems (then known as CATV)
brought TV into rural areas.
1) By the 1970s, cable systems had spread throughout the country, moving from rural to
major cities.
2) Cable systems are now a major medium with a household penetration of more than 72
percent.
3) Cable advertising has shown double-digit increases in recent years.
B. The contemporary cable television industry.
1) Audiences now have a wide choice of options from cable operators.
2) The success of cable can be traced to two related elements:
a. Brand identification based on unique, selective networks and programs that
appeal to targeted demographic audience segments.
b. The investment by cable networks in first-run programming.
3) Unlike networks that reach huge audiences, cable provides advertisers with much
smaller niche audiences who exhibit both common demographic characteristics and
interests.
4) Favorable brand recognition attracts large national advertisers to this medium.
5) Cable networks have begun to add original programming in order to attract both
viewers and advertisers; billions of dollars are being invested in original
programming.
*****NOTES: Use Exhibit 8.11 Here*****
C. The future of cable advertising. Factors that make cable television an attractive medium
for advertisers:
1) Ability to target audiences.
2) Low cost.
3) A strong summer season.
4) Opportunity for local and spot cable advertising.
D. New advertising options in the future for cable will be:
1) Cable network magazines that offer advertisers the opportunity to negotiate crossmedia deals to potentially have more impact on their target audiences.
2) Traditional advertising spots carried on regular analog cable.
3) Targeted advertising using digital technology.
4) Interactive advertising offered through software added to cable boxes.
a. Shopping directly from the TV screen.
b. A new innovation is cut-ins on network programs for local advertisers.
c. Interconnects occur where cable systems interconnect and link themselves to
distribute commercial advertising schedule simultaneously.
E. New research methods have been developed to help measure cable’s impact; Nielsen
Media Research and Mediamark Research Inc. offer a number of such services.
10. Videocassette Recorders and Digital Video Recorders
A. The videocassette recorder (VCR) has become as commonplace as TVs.
1) 89 percent of American homes have a VCR and many have more than one.
2). The VCR is almost a medium in itself.
3) Time-shift viewing allows one to see a show after it has already been broadcast.
B. Recording shows has its dark side for television advertisers.
1) Half the recorded shows are never watched.
2) Commercials can be skipped.
3) Time-shifting viewers tend to be demographically different than original audience.
C. Some industry observers predict that the VCR will be replaced by digital video
recordings (DVR), which offers more flexibility.
1) This technology does not require a tape and recording is quicker and easier and stores
many more hours of programming than a VCR.
2) It also allows advertisers to customize commercials for individual viewers.
3) Advertisers worry, however, this that technology also makes skipping commercials
very easy
4) There is also a concern that pay-per-view movies will decrease commercial viewing.
5) DVRs did not take off as quickly as predicted, due to the high cost of a unit.
However, some satellite and cable television companies began offering DVRs to lure
subscribers.
a. In 2006, DVR penetration of US television households was about 11 percent.
b. DVR households tend to be more upscale and more likely to be heavy users of
magazines, newspapers and the Internet.
6) DVRs provide technical convergence of computers, interactive communications and
multiple options for standard television. Advertisers will have to better target their
commercials
to
audiences.
11. Brand Integration or Product Placement
A. Product placement is when a real brand or product is included in a media vehicle in
exchange for goods, services, and/or money. The brand is integrated into the
programming so it appears realistic to the viewer and may lead to a positive impression of
the brand.
B. Advertisers have been more aggressive in seeking ways to integrate their brands into
television programs.
1) Brand integration can range from having the product appear in one episode to
sponsorships of entire shows.
C. New technology is making virtual product placements possible.
D. Advertisers debate the value of integration and it is not seen as something that will
replace commercials.
12. Syndicated Rating Services
A. Introduction.
1) It is crucial for advertisers to have reliable data on which to make buying decisions
and to determine if they are paying a fair price.
2) As television has become more fragmented, the measurement of customer delivery
has become more difficult and complicated.
a. As audiences for each television outlet decrease, the magnitude of error increases
as a percentage of the total viewing audience.
b. Because most advertising rates are determined by ratings, concern is increasing.
B. The Nielsen ratings.
1) The primary supplier of syndicated television ratings is Nielsen Media Research.
a. The company was founded in 1923 by A. C. Nielsen to collect radio audience
information.
b. The company began television rating services in 1950 with the Nielsen Television
Index (NTI).
c. Data is collected nationally from 9,000 households.
d. A People Meter is attached to the selected household’s television set to monitor
what is being watched, with buttons assigned to each person living in the home.
2) A NielsenUse
Station
Index
(NSI)
monitors local television watching.
*****NOTES:
Exhibit
8.13
Here*****
a. In the 56 largest markets, set meters measure household television set usage on a
continuous basis.
b. In 210 television markets, Nielsen provides diaries in which individuals record
their viewing habits. These are administered during four sweep periods (sweeps)
used to set the price of local commercials for the coming quarter.
3) In recent years, the rating system has come under increasing scrutiny. Areas of
concern include:
a. Sweep weeks. In theory, an efficient, inexpensive means of estimating quarterly
local market ratings. In fact, local market stations have sometimes used the
period to artificially distort their ratings by manipulating programming.
b. Diaries. Due to 50-plus-channel reception, the diary is an antiquated tool.
However, people meters are very expensive. Use of people meters would largely
eliminate the current sweeps problem by providing ongoing measurements.
c. Exposure value. Estimating exposure levels for television commercials versus set
usage.
1. Who is watching?
2. Who is paying attention?
3. What level of attention being given to any particular show?
4) Nielsen and Arbitron announced a joint research effort to solve audience
measurement problems, using portable people meters (PPM)
a. It eliminates the nuisance of diaries and does well at measuring out-of-home
audience measurements of radio.
b. Cost, however, is a major barrier.
5) It is clear that methods of measurement used in the past will not work in the
fragmented landscape of the twenty-first century.
a. But how much stations, networks, and advertisers are willing to pay will be a
primary issue.
C. Qualitative Ratings.
1) Another type of qualitative audience measurement seeks to offer insight into audience
involvement or degree of preference for particular television shows or personalities.
2) The best known qualitative service is Marketing Evaluation, which compiles a
number of popularity surveys called “Q” reports.
a. The most familiar of these are TVQ and Performer Q.
b. Example: If a TV show reveals 50 percent of the population familiar (FAM) and
30 percent rank it as their favorite (FAV), then Q = 60.
Q = FAV or 30 = 60
FAM 50
c. Because of fragmentation TVQ scores have gone down.