Media Math
Table of Contents
• Universe Estimate / Coverage
• Households Using Television (HUT) / Persons Using Television (PUT)
• Share
• Average Audience
• Ratings
• Gross Rating Points (GRPs)
• Reach
• Frequency
• Viewers per Viewing Household (VPVH)
• Cost per Thousand (CPM) / Cost per Point (CPP)
• Industry Definitions & Terminology
• Abbreviations & Demographic Derivations
Universe Estimate / Coverage
Universe Estimate (U.E)
• Total persons or homes in a given population
Universe Estimate = Impressions (000)
Rating %
Coverage
• The percentage of homes or persons able to receive an individual network or channel
Coverage 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 Television
during a given time period
HUT % = HH Rating %
Share %
Or
HUT % = # of Households with TV Sets in use
Total Households Universe
Persons Using Television
(PUT)
• The percentage of Total Persons in a particular demographic group that are viewing
Television during a given time period
PUT % = # of Persons Viewing TV
Total Person Universe
or
PUT % = Demo Ratings %
Demo Share %
Share
Share
• The Percent of Households Viewing Television that are tuned to a particular
program/network during average minute of program or daypart
Share = Rating
HUT %
Share Can Help you Calculate Rating or HUT
• Rating = Share x Hut
• HUT = Rating
Share
Average Audience
Average Audience (AA)
• Average Audience reflects viewing for an average minute to a program and is an
average 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)
Or
AA 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 the
Average Minute of a Program or Daypart
One Rating Point = 1% of the Population
Five Rating Points = 5% of the Population
Ten Rating Points = 10% of the Population
Ratings 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 to
a specific station
AA Rating % = Share % x Households Using Television % (HUT %)
Or
AA Rating % = Average Audience Projection (000)
Universe Estimate (000)
Or
AA Rating % = Gross Rating Points % (GRPs %)
Number of Spots
Ratings by Stream – Program Ratings
• With the increase in time-shifted viewing, Nielsen measures multiple types of
ratings that include DVR viewing… these are called “streams”
• Live + Same Day
• The number of households that watched a program either while it aired or
watched 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 or
watched it via DVR within 7 days of its original airing
Live + 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 original
airing with DVR playback
• C7 (Commercial Rating + 7 day DVR viewing)
• Measure of the commercials watched both live and seven days after
original airing with DVR playback
Does not measure specific commercials; average rating of commercials within the program
C3 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 point
equals one percent of total audience (universe)
GRPs = Impressions (000)
Universe Estimate
or
GRPs = Rating % x Number of Spots
or
GRPs = Reach % x Frequency
• The sum of all rating points in a given schedule
• Takes into account duplication
• Can exceed 100
• Describes the amount of media weight
Reach
Reach
• The number of different households or persons who are exposed at least once
to a program, daypart, or advertising schedule over a given period of time; Also
referred to as Cume, Unduplicated Audience or Net Audience
Reach = Gross Ratings Points (GRPs)
Average Frequency
• Does not take into account duplication
• Usually expressed as a percent
• Can never exceed 100%
• A one time rating is a reach
Reach Curve
Reach is maximized btwn 100-150 GRPs;
Additional GRPs will hit the same consumers
100 (frequency) and less new ones
90
80
70
% REACH 60
50
40
30
20
10
0
0 50 100 150 200 250 300 350 400 450 500
GRP’S
Frequency
Average Frequency
• The average number of times that each Household (or Person) is exposed to an
advertising 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 the
Households tuned to the program
VPVH = Persons or Demographic Projection (000)
Household Projection (000)
• Shows the audience skew of a program/network
• Can be expressed in Hundreds (.10) or Thousands (.100)
• Is additive between demographics
• Used in estimating a program’s target audience
Average Hours of Viewing
• HUT / PUT converted to the average hours of viewing per home or per person
Average 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 group
CPM = Media Cost (in Dollars)
Gross Audience (000)
or
CPM = Bucks
Schmucks
• 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 Cost
Rating %
Or
CPP = Total Schedule Cost
Gross 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 above
listed broadcast networks. Independent broadcast networks include Emerging networks such as
Azteca America.
• PBS - Tuning to all station affiliated with the Public Broadcasting Service.
• Premium Pay - Tuning to Premium Pay Cable services (Encore, HBO, Multimax, Showtime and
Starz)
• Ad-Supported Cable - Tuning to all advertiser supported cable networks. Only includes Cable
Networks that run advertisments. (AMC, CNN, ESPN, TNT, etc…)
• All Other Cable – Tuning to those cable networks that are neither ad-supported nor premium
pay. Includes pay per view, interactive channels, home shopping channels and audio only feeds
but excludes the Disney Channel
• All Other Tuning – Effective with installation of the A/P meter in 7/05, reports tuning to a
distributor 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 the
size of the population.
• Interconnect
• A large group of cable systems within a DMA that are “connected” together. Interconnect
gives advertisers the option to reach all cable households within a given market with one
buy, 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 Abbreviations
NTI (Broadcast) Nielsen Television Index
NSI (Syndication) Nielsen Syndication Index
NHI (Cable) Nielsen Home Video Index
NHTI (Hispanic TV) Nielsen Hispanic Television Index
ADS Alternate Delivery Source
DBS Direct Broadcast Satellite
DMA Designated Market Area
MSO Multi Systems Operator
SMATV Satellite Master Antenna Television
AOT All Other Tuning
TELCO Television Cable Operator
Demographic Derivations
To Derive Computation
2-5 2-11 minus 6-11
35-49 18-49 minus 18-34
25+ 25-54 plus 55+
35+ 18+ minus 18-34
50+ 18+ minus 18-49
65+ 18+ minus 18-64
50-64 35-64 minus 35-49
18-64 18-34 plus 35-64
25-64 25-54 plus 55-64
18-24 18+ minus (25-54 plus 55+)
25-34 18-34 minus 18-24
50-54 (18+ minus 18-49) minus 55+
55-64 55+ minus 65+
25-49 18-49 minus 18-24
35-54 (18+ minus 18-34) minus 55+
12-24 12-17 plus 18-24
18-54 18-24 plus 25-54
For More Information Visit Us Online
TheVAB.com
Join Our Email List
Follow Us:
@VideoAdBureau
Follow Us:
VAB (Video Advertising Bureau)
