## Audience Measures and Formulas

Average Audience (AA)
Can be expressed as a rating (%) or projected audience (000). The “AA” reflects viewing for an average minute to a program and is an average of the audience at minute 1, 2, 3, etc.

AVERAGE AUDIENCE (RATING %)

The percent of the universe of households or persons viewing a TV program during the average minute.

 When we say… Mathematically, it means… 10 rating .1 or 10% .1 rating .001 or .01%

Rating % =
AA Projection (000)/Universe Estimate (000)

GRP’s (%) / # Spots

HUT (%) x Share (%)

Examples:
Share % x Hut %
4.3 x 61.2% (or .612) = 2.63

Delivery/UE

(2,775,000/105,500,000) x 100 = 2.63

NOTE: You can't add ratings together because they are percentages so do not add M18-49 RTG + W18-49 RTG to get A18-49 RTG.

PROJECTIONS/DELIVERY/IMPRESSIONS

Average Audience Projection (000)
A rating expressed in numeric rather than percent form.

Average Audience Projection (000)=
Rating (%) x Universe (000)

VPVH x HHAA (000)

Impressions (000) / # Spots

Example:
RTG (%) x Universe (000)
2.63 % (or .0263) x 105,500,000 = 2,775,000

NOTE: You cannot add ratings of different denominators together so cannot add M18-49 RTG + W18-49 RTG to get A18-49 RTG.

COVERAGE RATING

Coverage
The percentage of homes or persons receiving a particular broadcast signal within a specific geographic area.

Coverage RTG % =
Coverage AA Projection (000) / Coverage Universe Estimate (000)

HUTS/PUTS

Households Using Television (HUT)
Total viewing to all television.

HUT (%) =
#HH with TV sets on (000) / Total HH Universe (000)

HH RTG % / Share %

Example:
HH RTG % / HH Share %
(2.6/ 4.3) x 100 = 60.5%

#HH with TV sets on (000) / Total HH Universe (000)
(64,596,000 / 105,500,000) x 100 = 61.2%

NOTE: The sum of the average ratings for a give time period may be higher than the HUT because of viewing in multiple-set TV households. If a household is watching two programs, it is counted toward each program rating, but only once towards HUT.

Persons Using Television (PUT)
The percentage of all persons within as given demographic category in the survey area who are viewing television during a specific period of time.

PUT (%) =
# Persons with TV sets on (000) / Total Persons Universe

Demo Rtg % / Demo Share %

SHARE OF AUDIENCE

Share (or Share of Audience)
The percent of households using television (HUT), which are tuned to a specific program at a specified time.

Share (%) =
Rating (%) / HUT %

Example:
Rating (%) / HUT %
{2.6 (or .026) / 61.2 (or .612)} x 100 = 4.2

NOTE: Difference between share and rating is that share is percentage of HUT (Household Using TV) whereas the Rating is percentage of the universe. In essence for share, the TV set must be on whereas for rating the TV set may be on or off…it’s a percentage of the whole TV universe.

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) =
GRP’s (%) x Universe (000)

VIEWERS PER VIEWING HOUSEHOLD (VPVH)

Estimated numbers 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 Unit Cost / AA (000)

Example:
Media Cost / Gross Impressions (000)
\$1.5 Million / 85,000 = \$17.6

COST PER POINT

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.

DEMOGRAPHIC DERIVATIONS

 To Derive... Computation... Age 2-5 2-11 minus 6-11 Male teens total teens minus female teens 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
* derivable

COMMONLY USED ABBREVIATIONS

 NTI (Broadcast): Nielsen Televion Index NSI (Syndication): Nielsen Syndication Index NHI (Cable): Nielsen HomeVideo Index NHTI (Hispanic TV): Nielsen Hispanic Television Index ADS: Alternate Delivery Source DBS: Direct Broadcast Satellite DMA: Designated Market Area GRPs: Gross rating points HUT: Households Using TV MSO: Multiple Systems Operator MDS: Multipoint Distribution System R&F: Reach & Frequency SMATV: Satellite Master Antenna Television

November
February
May
July

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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