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What is Foursquare?

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What is Foursquare?

Foursquare is a social networking application for your cell phone that relies on your location to provide information relevant to where you are located at any given time.

Foursquare works on iPhone, Android, Blackberry, or Palm. If you have another phone with a web browser, you can use their mobile website. If you have a phone that doesn’t have a web browser, you can use our SMS. The system works in the US only for now.

Check-in to places

People use foursquare to “check-in”, which is a way of telling Foursquare your whereabouts. When you check-in someplace, Foursquare tells your friends where they can find you, and recommend places to go & things to do nearby. People check-in at all kind of places – cafes, bars, restaurants, parks, homes, offices.  As your friends use foursquare to check-in, you’ll start learning more about the places they frequent. You’ll also start to learn about their favorite spots and the new places they discover. Foursquare makes lists of your favorite things to do and lets you share your experiences with friends, and even suggest new experiences to seek out. As you check-in around the city, you’ll start finding tips that other users have left behind. After checking-in at a restaurant, it’s not uncommon to unlock a tip suggesting the best thing on the menu. Checking-in at a bar will often offer advice on what your next stop should be. Every tip you create is discoverable by other users just by checking in.

Earn points and unlock badges!

Every foursquare check in earns you points. Find a new place in your neighborhood? +5 points. Making multiple stops in a night? +2 points. Dragging friends along with you? +1. And as you start checking-in to more interesting places with different people, you’ll start unlocking badges. There are badges for discovering new places and for traveling to far away places. Spending too much time singing karaoke or been hitting the gym consistently? Yes, there are badges for those too.

Become the mayor! Unlock some freebies!

We all have our local hangouts. Foursquare keeps tabs on who’s the most loyal of all the regulars. If you’ve been to a place more than anyone else, you’ll become “the mayor”… until someone else comes along and steals your title. Foursquare provides a list of places that are offering freebies to “mayors” – free coffees, free ice-cream, free hotel stays, etc.

So that’s about it – ready to sign up?

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Email Don’t’s

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  • Making it difficult to unsubscribe. Commit these concepts to memory: spam-complaint button, CAN-SPAM Act, consumer control, common sense. Now, repeat after me: “Unsubscribes are a good thing!” Again, with feeling! When you camouflage your unsubscribe link in tiny type or behind euphemisms, you don’t get better sales or higher ROI. Instead, recipients will click the spam button so frequently that ISPs block your emails. Make it easy to unsubscribe, but also make it easy to give your subscribers alternatives to do what they really want, like changing format, frequency, email address or interests.
  • No “welcome” message and/or waiting weeks to send the first message. Many marketers are missing the boat on such basic concepts: 60% don’t send a “welcome” email, according to a recent Return Path study, and 35% sent no emails in the first 30 days after opting in, according to a Silverpop study of large retailers’ email practices.

    While no hard numbers exist, I estimate that retailers without a welcome program and/or who wait 30 days or longer to send the first email may be reaping only half of their potential ROI.

  • Overmailing. This is typically the number one or two reason people hit the spam-complaint button or unsubscribe. Stop, please! There is no “magic” number of times to send in a week or month. As I outlined in my earlier column “What’s the Best Frequency? Who Cares,” your subscribers and your program goals ultimately determine your optimum frequency.
  • Using a large single image as the core of your email. Not only does this create a horrendous rendering problem with recipients who use preview panes, have images blocked, or both, it can also get your email blocked or filtered to junk folders by ISPs such as Hotmail.
  • Not using alt tags. You didn’t know that an alt tag is the HMTL code that describes an image and displays (some of the time) when the email client/ISP blocks the image? Now you do. So, get with your email designer and copywriter to create descriptive tags for each image.
  • Relying on graphical links. Guess what? If recipients can’t see the image-based link, then they won’t click on it, either. Use text links, especially for navigation and key calls to action, and create HTML buttons that render even when the email client blocks the corresponding image buttons.
  • Not having a preference center. If you don’t make it super-easy for subscribers to change their email address, frequency, format and profile/preferences, then you are just list-churn roadkill.
  • Not designing for the preview pane. More than a quarter of consumer users and half of all business users read email in a preview pane. Ignore that reality, and you will feel the “pain” of a lower ROI.
  • Using a person’s name in the “from” line. You can do this if your name is Martha Stewart, Seth Godin or Guy Kawasaki. But Mary Smith, marketing director? Nope. Tell me the email is from “Company A” and I’ll be more likely to recognize and read the email.
  • Hiding email registration. How are people supposed to sign up for your emails if they don’t even know you send them? And one measly registration form field buried at the bottom of your homepage won’t create a stampede. Sell potential subscribers at every possible turn, with an invitation that spotlights your email benefits, on every page of your Web site.
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    Glossary of Digital Video Terms

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    Average View Time – refers to the average amount of time the video ad was played/viewed by users.

    Brand Awareness – research studies can associate ad effectiveness to measure the impact of online advertising on key branding metrics.

    Bug – a persistent, graphical element that appears in the video environment. Clicking on it will generally take the user to a website.

    Bumper Ad – usually refers to a linear video ad with clickable call-to-action; format is usually shorter than full linear ads (i.e. 3-10 seconds) and call-to-action usually can load another video or can bring up a new site while pausing the content.

    Click-through – the action of following a hyperlink within an advertisement or editorial content to another Web site or another page or frame within the Web site.

    Cloud Computing – A metaphor for internet-based services that allow users access IT-enabled services delivered and maintained via internet servers (“the cloud”). The idea is to provide a single point of access for all the computing needs of the user. The term entered the vernacular when Amazon.com began building massive cloud-based data centers to improve efficiencies in its online retail businesses.

    Companion Ad – both linear and non-linear video ad products have the option of pairing their core video ad product with what is commonly referred to as companion ads. Commonly text, display ads, rich media, or skins that wrap around the video experience, can run alongside either or both the video or ad content. The primary purpose of the companion ad product is to offer sustained visibility of the sponsor throughout the video content experience. Companion ads may offer click-through interactivity and rich media experiences such as expansion of the ad for further engagement opportunities.

    Completes – completes refer to whether the video played to completion.

    Contextual Ads – existing contextual ad engines can deliver text and image ads to non-video content pages. Ads are matched to keywords extracted from content. Advertisers can leverage existing keyword-based paid search campaigns and gain access to a larger audience. Third-parties generally receive a share of the revenue collected from the advertisers.

    Core Ad Video – the essential video asset, often repurposed from offline; can be displayed directly in the player or in a more customized presentation.

    Crowdsourcing – The web 2.0 practice of leveraging communities of fans, users or members of the general public to help achieve a stated business goal. Online crowds are tapped to solve complex issues, develop or test new products or in the realm of entertainment, point development executives in the right direction. The term was coined by writer Jeff Howe in a 2006 magazine article for Wired.

    Event Trackers – primarily used for click-through tracking today, but also for companion ad interactions and video session tracking where available.

    Full Screen Views – refers to the number of impressions where the video was played in full screen mode.

    Hot Spot – an ad unit that is sold within the video content experience. Mouse action over the video highlights objects that can be clicked. The click action generally initiates a linear video ad or takes the user to a website.

    In-Banner Video Ads – leverage the banner space to deliver a video experience as opposed to another static or rich media format. The format relies on the existence of display ad inventory on the page for its delivery.

    In-Page Video Ads – delivered most often as standalone video ads and do not generally have other streaming content associated with them. This format is typically home page or channel based and depends on real estate within the page dedicated for the video player.

    In-Stream Video Ads – played before, during or after the streaming video content that the consumer has requested. These ads cannot typically be stopped from being played (particularly with pre-roll). This format is frequently used to monetize the video content that the publisher is delivering. In-Stream ads can be played inside short or long form video and rely on video content for their delivery. There are generally four different types of video content where in- stream plays: UGC (User Generated Content/Video), Syndicated, Sourced and Journalistic.

    In-Text Video Ads – delivered from highlighted words and phrases within the text of web content. The ads are user activated and delivered only when a user chooses to move their mouse over a relevant word or phrase.

    Invitation Unit – a smallish still or animated graphic often overlaid directly onto video content. Typically used as a less-intrusive initial call-to-action. Normally when a viewer clicks or interacts with the invitation graphic, they expand into the ad’s full expression, which might be a simple auto-play video or an interactive experience; also commonly referred to as an Overlay Ad.

    Source: IAB Digital Video In-Stream Ad Format Guidelines and Best Practices

    DIGITAL GLOSSARY

    A compendium of frequently-used terms, abbreviations and standards used in the digital media world.

    API (Application Programming Interface) – Routines, protocols and tools programmers use to build software applications. For years, software and hardware companies carefully guarded their APIs to make sure they could control and approve what was developed for their platforms. More recently, open source practices are being adopted, making API’s available to the public to encourage independent developers to create new applications for particular platforms.

    Aspect Ratio – The ratio of the width of a film frame to its height. The 4 to 3 “academy ratio” is used for standard def. TV and most video on the web. The HDTV format has an aspect ratio 16:9.

    Avatar – graphic representation of a person online, usually used to navigate a virtual world such as Second Life. Some try to make their avatars look like themselves, and others go for idealized/stylized visions. Japanese anime characteristics – larger heads and eyes – are often the norm.

    AVI (Audio Video Interleaved) – A Microsoft format for digital audio and video playback from Windows 3.1. Somewhat cross-platform, but mostly a Windows format. Has been replaced by the ASF format, but still used by some multimedia developers.

    Bandwidth – A measure of the amount of data that can travel through a network. Once measured in kilobits per second (Kbps), megabits (1 million bits) per second are more relevant in the broadband era.

    Bit Rate – The number of bits transmitted per second. Dial-up maxes out at 56 kilobits per second while broadband via DSL, cable modem, fiber optic cable or WiFi can transmit anywhere from 400k to 8 megabit per second and beyond.

    Blog/Vlog – Online text or video diaries covering a range of topics, from personal reflections to highly specialized industry news. Many web companies maintain their own corporate blog where informal announcements are made to their communities of users. More popular blogs earn ad revenue, break news, attract buyout offers and have even been known to influence national debate or stock prices. Platforms such as Google-owned Blogger, TypePad and WordPress have turned blogging into one of the easiest ways for people to maintain a constantly updated web presence.

    Buffering – A process used as a part of streaming media technologies whereby a certain amount of data is fed into the player to allow it to begin playing before fully downloading the file.

    Byte – One of the basic units for measuring digital information, especially relevant to understanding storage capacity on computer disks. 8 bits comprise a byte. Roughly 1000 bytes equals one kilobyte. 1000 kilobytes is one megabyte or meg. 1000 megabytes is a gigabyte.

    Client – The software that allows users the ability to retrieve information from the internet and World Wide Web. The Joost video player is an example of client software that resides on the desktop then connects to the web to retrieve video.

    CODEC (Coder/Decoder) – A mathematical system for compressing (encoding) and decompressing (playing back) a video or audio file. CODECs can be hardware or software-based, or both. Hardware CODECS are often more efficient, but the trade-off is that not all users will have the special hardware needed to play back the file.

    Compression – The process of reducing the size of a media file by eliminating data. Higher compression means that the compression utility defines greater amounts of data as redundant. This can lead to loss of image quality, but highly compressed images can be delivered more efficiently over a network.

    Data Rate – An attribute assigned to a media file by a compression utility. It is a measure of the amount of digital information transmitted in a given unit of time-usually a second. Thus, a video could be encoded to play back at a rate of 500 kb/s.

    Digitize – To convert analog (wave-based) media into digital format (zeros and ones) so that they can be understood by computers. Also known as “capturing,” and sometimes “encoding.”

    DPI (Dots Per Inch) – A measure of image resolution.

    DRM (Digital Rights Management) – A technology that allows content owners to determine and control who and how users can view content such as media files on the internet.

    Embed Tag – An HTML tag used to place a media file (such as an audio, video, or Flash file) into a web page. The embed tag defines an area on the page in which the media file will appear if it involves graphic elements, helps the browser understand what type of file it is, and specifies other info such as whether the file will play automatically when the page loads. Embedded media are contrasted to media controlled through a separate player, such as when the Windows Media player pops up over your web browser to display a video.

    Encoding – The process of compressing a media file for a specific purpose, such as streaming on the Web.

    Flash – The authoring tool and format developed by Macromedia (acquired by Adobe Systems in 2005) to create content for digital platforms such as web applications, games, movies. It has become the preferred standard for adding animation and interactivity to web pages and is commonly used to integrate video and develop rich media applications.

    Frames Per Second (fps) – The number of video frames displayed each second (also called frame rate). Continuous motion is believed to be achieved at about 17 fps. A common standard for video delivered over the web is 15 fps, which reduces file sizes substantially (since most video is shot at roughly 30 fps) but still but allows for fairly smooth motion.

    Fullscreen – A way of viewing images in which the content is accommodated to the size of the monitor you are using. This can result in noticeable distortion if the data rate of file is too low.

    Full Motion – Refers to NTSC-quality video-a video signal that is 30 fps, and at least 640×480 pixels in size.

    Gigabyte (GB) – A unit of measure equal to 1,000 megabytes.

    HDTV – High Definition Television, a format with significantly higher resolution than standard NTSC, SECAM or PAL, broadcast either in 720p or 1080i, referring to the lines of vertical resolution. HDTV also has a screen ratio of 16:9 as compared with traditional TV screens, which have a screen ratio of 4:3. HDTV offers reduced motion artifacts (i.e. ghosting, dot crawl), and offers 5.1 independent channels of CD-quality stereo surround sound, (also referred to as AC-3).

    Hotspotting – The practice of embedding hyperlinks within online video to enable users to click on actors, characters’ articles of clothing or other objects within the frame for more information or the opportunity to purchase.

    HTML (HyperText Markup Language) – The rules that govern the way documents are created so they can be read by a world-wide-web browser.

    HTTP (HyperText Transport Protocol) – The protocol through which web pages are transmitted over the Internet.

    Hyperlink – A web link in a given document to information within another document. These links are usually represented by highlighted words or images. The user also has the option to underline these hyperlinks.

    HTTP Streaming – A form of streaming (popularized by QuickTime) in which media files begin to play before they are downloaded entirely. This means that they can be sent via HTTP and don’t require specialized server software such as RealMedia files do. Also called Progressive Download.

    IP (Internet Protocol) – The basic language of the internet. It was developed by the government for use in connecting multiple computer networks.

    ISP (Internet Service Provider) – A company that allows users to connect to the internet, usually through a dial up, cable, DSL or fiber-to-the-home modem. Wireless ISPs such as ClearWire are also emerging.

    Java – An object-oriented programming language that is platform independent (i.e., works on Windows, Mac OS, Linux). Java is often used to write “java applets,” which are small applications that can be embedded into web pages, giving the pages sophisticated functionality.

    JavaScript – A programming language based on Java and C++ developed by Netscape that allows web authors to give increased interactive functionality to web pages. Common functions created with JavaScript are image rollovers (an image that changes when you scroll your mouse over it), browser detection, and pop-up windows.

    JPEG (Joint Photographic Experts Group) – Refers to an image file format popular for delivery over the Web because of its relatively high quality and low file size. Before uploading JPEGs to the Web, users can determine the amount of compression assigned to them-usually on a scale from 1 to 10.

    Machinima – a user generated genre of digital film production created from the same 3D computer-generated imagery (CGI) used in interactive gaming and virtual world content. Machinima (short for Machine Cinema) films often utilize the same characters featured in games such as Quake, Half Life and The Sims.

    Malware – Software designed to infiltrate a user’s computer system without his or her consent. The nasty pieces of code take the form of viruses, worms, Trojan horses, spyware or adware designed to erroneously inflate click-through or usage numbers.

    Mashup – A web service or software tool that combines two or more tools to create a whole new service. A famous example is ChicagoCrime, which merges Google Maps with the Chicago police department’s crime tracking web site to offer a map of crime in different parts of Chicago. The term is also used to describe user generated remixes of content from different sources.

    Megabyte (MB) – A unit of measure equal to 1,000 kilobytes.

    MPEG (Moving Picture Experts Group) – A series of International Organization for Standardization (ISO) standards for digital video and audio, designed for different uses and data rates.

  • MPEG-1 was designed for playback of video on CD and includes MP3 for audio playback.
  • MPEG-2 is the standard for DVD video.
  • MPEG-4 is the next-generation format improving adaptability and flexibility for use in digital television, animation graphics, web video and its extensions, offering more control and copyright protection functionality.
  • Multicast – Method of carrying a compressed video signal across multiple routers to various clients in streaming media.

    Newsreader – Gathers the news from multiple blogs or news sites via RSS (see below), allowing readers to access news from a single web site or program. Online newsreaders (like Bloglines, Pluck, or Newsgator) are web sites that allow you to read RSS feeds from within your web browser. Desktop newsreaders download the news to your computer, and let you read your news inside a dedicated software program.

    NTSC - The video input signal formats used in North America and Japan. Full-sized NTSC has 525 total lines of resolution (480 visible) per frame.

    Open Source – A movement in which software developers make their source code available to anyone for free collaboration. The Linux operating system, created by Linus Torvalds, was an early example, relying on an army of volunteers to keep it up to date.

    PAL (Phase Alternating Line) – The European standard for television transmission representing 625 lines of resolution (576 lines viewable).

    Peer-to-peer (P2P) – Relies primarily on the computing power and bandwidth of the participants in the network rather than concentrating it in a relatively low number of servers. Although Napster no longer allows the free sharing of music from one user to another, it helped spawn video companies such as BitTorrent that utilize P2P protocol to distribute video.

    Phishing – Using social engineering techniques to fraudulently obtain a user’s sensitive personal information-such as usernames, passwords, credit card numbers and bank account details-for nefarious purposes. It’s typically done by sending bogus emails or IM’s that direct users to a website that requests additional information.

    Podcasting – The iPod created a boom in internet audio, allowing users easily record their own radio-style shows and put them online for others to download or subscribe to. Video podcasts add moving images to the mix.

    QuickTime – A digital audio and video file-format and architecture developed by Apple. Can be viewed on most computing platforms.

    RSS – (Really Simple Syndication) Format for storing online information to make it readable by many different kinds of software. Many blogs and web sites feature RSS feeds, constantly updated in a form that can be read by a newsreader or aggregator.

    SECAM – The video format used in France and some other countries. SECAM has 625 lines total (576 lines visible) per frame, and has a frame-rate of 25 frames per second.

    Server – A computer that “serves” centralized information, either to a local group or the Internet.

    Social Networking – Web sites that allow people to link to others to share opinions, insights experiences and perspectives, whether it’s music fans on MySpace, business contacts on LinkedIn, or classmates on Facebook. Many media sites have adopted social networking features such as blogs, message boards, podcasts and wikis to help build online communities around their content.

    Streaming Media – Video or audio transmitted over a network that users can begin to play immediately instead of waiting for the entire file to download. Typically a few seconds of data is sent ahead and buffered in case of network transmission delays. (Although some data is buffered to the hard drive, it is written to temporary storage and is gone once viewing is complete.) RealMedia, QuickTime and Windows Media are the most common streaming formats.

    Tags – Keywords attached to photos or Web pages to help identify them and allow them show up in search engines. Photos on Flickr typically carry many tags. The social bookmarking manager Del.icio.us allows users to post their favorite Web sites and then tag them, creating a new tool for searching those sites.

    URL (Uniform Resource Locator) – The address to a source of information on the web. The URL contains four distinct parts, the protocol type, the machine name, the directory path and the file name.

    Wireless Application Protocol (WAP) – is the open international standard for applications written for cell phones or other wireless devices including Blackberrys and PDAs. A WAP browser surfs sites written to the standard, just like an internet web browser does.

    Webcasting – Communicating to multiple computers at the same time over internet by “streaming” live audio and/or live video through compression and decompression of the signal.

    White Label Product or Service – A product or service created by one company and sold to another to be rebranded as their own. In the digital world, white labels can apply to web applications, widgets or even entire networks. For instance Ning is a white label social networking service started by Netscape founder Marc Anderssen that companies can use to create their own social network.

    Widget – A small downloadable application that resides on a computer’s desktop or can be embedded on blogs, social networking profiles, personal start pages or other websites. Widgets can play audio or video tracks, conduct polls or quizzes, run slideshows or provide news o stock prices, or a multitude of other minor tasks.

    Wiki – A collaboratively edited web page. The best-known example is wikipedia, an encyclopedia that anyone in the world can help to write or update. Wikis are frequently used to allow people to write a document together, or to share reference material that lets colleagues or even members of the public contribute content.

    Windows Media – A media format developed by Microsoft for streaming and playing back media files.

    XML (Extensible Markup Language) – A general purpose standard for describing, or marking up, documents and data distributed on the web. XML allows authors to create customized tags that can help them efficiently achieve their goals.

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    Understanding Radio Ratings

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    Radio was the first telecommunication medium, and thus was the first to require audience estimates. Radio ratings are therefore the oldest form of telecommunication ratings. To understand radio ratings, you must be familiar with the following terms and concepts.

    AUDIENCE ESTIMATES: All telecommunication ratings are estimates of audience participation. These estimates are based on audience surveys. The limited number of people sampled in ratings surveys accurately represents the larger total audience only if the survey methods are statistically valid. This means they must comply with the mathematic rules of random statistical sampling. Their accuracy (and margin of error) depend on the methods used.

    INDIVIDUALS AS UNITS: Because radio has become primarily an individual medium (people participate more often alone than in groups), individuals are the measuring unit for radio ratings. Radio ratings measure the number of individual persons in the audience for each radio station.

    LOCAL AUDIENCE: Since the 1950s, radio has become largely a local medium. That is, most radio programming does not originate at the network level. Local broadcasters assemble music, news, talk, and other forms of entertainment at a single local studio and transmit them to a local audience. National radio ratings do exist, but are insignificant to a basic understanding of radio ratings. Radio is essentially a local phenomenon in America. The implication for ratings (of this local orientation) is that only local ratings are taken regularly. Arbitron specializes in local radio ratings, as does Birch Radio.

    STATION DAYPARTS: Radio programming (and therefore, radio ratings) are divided into dayparts lasting several hours each. An example is Morning Drive, which might last from 6:00am till 10:00am, and encompasses that period of time in the morning when people are driving to work. An announcer (sometimes more than one) is assigned to host a given daypart on a daily basis, Monday through Friday. Weekends have unique dayparts of their own.

    RATINGS DAYPARTS: Daypart names, times, and lengths differ from station to station, and may or may not be the same as the daypart definitions used by the ratings service(s) which measures the audience.

    CUME: This term is an acronym for “cumulative,” and identifies a particular type of radio audience statistic. The CUME statistic measures the number of individual persons who tune into a given radio station in a calendar week. An individual listener will be counted only once in the CUME statistic, regardless of how many times (s)he listens during the week, or for how long.

    AQH: This term is an acronym for “average quarter hour,” and identifies another type of radio audience statistic. Most radio ratings services divide each broadcast hour into four quarter-hours (15-minute segments) for measuring purposes. For each quarter- hour, within every hour of every day, an audience sample is taken. Any listener who tunes into a given radio channel for a minimum of five (5) minutes during a quarter-hour segment, is counted in the AQH statistic for that quarter-hour. Listeners are counted for any and every quarter-hour in which they participate. For example, if an person listens for 30 minutes, (s)he will be counted in the AQH for the first quarter-hour, and then again in the AQH for the following quarter-hour. The “Average Quarter Hour” statistic is calculated by averaging all the quarter-hours in a given daypart. For example, if Morning Drive is from 6:00am to 9:00am, there are three hours involved (making a total of 12 quarter-hours). The number of listeners counted in each of those 12 quarter-hours are added together and divided by 12 to come up with an average number of listeners in Morning Drive quarter-hours. This is the AQH statistic. It represents the average number of persons listening to a given station at any given moment in time, within a given daypart.

    SURVEY AREAS

    Each radio ratings service determines the boundaries for its own survey area(s). But they are usually divided into at least two types:

    METRO SURVEY AREA (MSA): The metropolitan area served by the radio stations being measured. In Utah, this would normally include the largely urban areas encompassed by Salt Lake City, Ogden, Provo, and those suburban cities which lie in between.

    TOTAL SURVEY AREA (TSA): The entire geographic area which can be reached by the radio stations being measured. In Utah this would usually include the entire state of Utah, plus some adjoining counties in Nevada, Idaho, and Wyoming.

    The Problem With TSAs: Some stations who do not do well in the metropolitan survey area will quote statistics for the total survey area. This is somewhat misleading, unless the intended advertiser is interested in and capable of serving listeners in a wide, multi- state area.

    If a station reaches 5,000 people state-wide, but only 1,000 people in the immediate metropolitan area, the local hamburger restaurant may not be getting full value if the station quotes listener statistics based on an area far beyond the restaurant’s natural marketplace. Ethical professionals are careful about quoting TSA statistics.

    TYPES OF STATISTICS

    RATING: Either the CUME or the AQH may be expressed as a “rating.” While this term is often used in a general way to talk about the entire “radio ratings” process, it actually has a specific meaning. The rating is the CUME or the AQH statistic, expressed as a percentage of the total potential audience (all the persons living in the survey area who belong to the specified gender and age group). In other words, it is the percentage of all those living in the area, whether or not they listened to radio that week. Some examples follow:

  • Cume Rating: If there are 100,000 teens in the metro survey area, and 10,000 of them tuned into a given station at one time or another during a given week, it can be said that the station has a 10% CUME rating among teens. In the ratings business, that 10% is expressed as a decimal number (.10) which in turn is multiplied by 100 and referred to as a “CUME rating of 10.”
  • AQH Rating: If there are 100,000 teens in the metro survey area, and on average there are 1,500 of them listening in any quarter-hour, it can be said that the station has a 1.5% AQH rating among teens. That 1.5% is expressed as a decimal number (.015) which in turn is multiplied by 100 and referred to as an “AQH rating of 1.5″.
  • SHARE: Either the CUME or the AQH may also be expressed as a “share.” The share is the CUME or the AQH statistic, expressed as a percentage of all the persons listening to radio in the survey area who belong to the specified gender and age group. In other words, it is the station’s share of those in the defined gender/age group who actually listened to radio (any channel) during that week (CUME) or that quarter-hour (AQH). Some examples follow:

  • Cume Share: If 10,000 teens in the metro survey area listened to radio this week, and 5,000 of them tuned into a given station at one time or another during that same week, it can be said that the station has a 50% share of CUME teen radio listeners. That 50% is expressed as a decimal number (.50) which in turn is multiplied by 100 and referred to as a “CUME share of 50.”
  • AQH Share: If in any given quarter-hour there are 2,000 teens in the metro survey area who are listening to radio, and in that same quarter-hour there are 500 of them listening to one particular radio station, it can be said that the station has a 25% share of AQH teen radio listeners. That 25% is expressed as a decimal number (.25) which in turn is multiplied by 100 and referred to as a “CUME share of 25.”
  • The Problem With Shares: Share statistics sound good because they are always higher (as a percentage) than ratings. Still, they can be meaningless. If only 100 people are listening to radio in a given quarter-hour, and my station has 50 of them, I can claim a 50 share. But my 50% share of 100 people will not do much good for my advertisers. Ratings are preferred over shares by telecommunication professionals, because they show the percentage of the total population, rather than just the percentage of radio listeners.
  • LISTENER LOYALTY

    Ratings and Shares statistics each tell us something about the audience. But they are more useful when we combine them and critically analyze the result. For example:

  • Example #1: A station with a CUME of 20,000 and an AQH of 100 would be a station which attracts large numbers of people in a week but does not hold them for very long. This can be deduced from the fact that very small number of them are listening at any given time (the AQH statistic). Such a station would be doing a fine job of promoting itself (attracting listeners), but a poor job of programming (when they tune in, they do not stay tuned).
  • Example #2: A station with a CUME of 10,000 and an AQH of 2,500 would be a station with a smaller but very loyal audience. 25% of those who listen to this station during the week are listening at any one moment in time. This might be a station with a very specialized format (e.g., jazz or classical music). Such loyalty is important to advertisers. It means that the chances are greatly increased that their ads will be heard over time by this continually tuned-in audience.
  • TIME SPENT LISTENING (TSL): Listener loyalty can be directly measured by calculating the amount of time which an average listener spends listening to a particular station. To compute this, you need to know the following formula:

  • TIME SPENT LISTENING = AQH × Number of Quarter Hours / CUME

    The number of quarter-hours is determined by the daypart selected. Let us assume that the daypart is Morning Drive (6:00am-9:00am). In those three hours there are 12 quarter-hours per day. In the week there are five days. This makes a total of 60 quarter-hours in the week, and that is the number used in calculating Time Spent Listening during the week. If the statistics quoted in the Example #1 above (AQH=100, CUME=20,000) were for this three-hour Morning Drive daypart, we could then calculate the TSL as follows:

  • TIME SPENT LISTENING = (100 × 60) / 20,000 = 6,000 / 20,000 = 0.3 qtr hrs
  • Remember that this .3 answer is expressed as quarter- hours, not as hours. Since a quarter-hour consists of 15 minutes, we are looking here at .3 X 15 minutes, or 4.5 minutes. This means that the average listener to this station listens for less than five minutes per week during Morning Drive time. This is pretty dismal.

    Example #2 had a much more loyal audience (AQH=2500, CUME=10,000). We would expect the TSL to be much higher, and it is:

  • TIME SPENT LISTENING = (2,500 × 60) / 10,000 = 150,000 / 10,000 = 15 qtr hrs
  • These 15 quarter-hours equal 45 minutes, meaning that the average listener to this station listens 3 hours and 45 minutes per week during Morning Drive time. This is much better, and more likely to produce results for an advertiser.

    AVERAGE FREQUENCY: Advertising professionals appreciate loyalty, but they know something more. Listeners who need or are prone to buy a product will not respond to an ad for that product until they have been exposed at least three times to the advertisement’s message. This is called a frequency of three. An ad must be placed on a station enough times so that the average listener (who tunes in and out throughout the week) will hear its message at least three times.

    To determine how many times a commercial must be played in a week on a given station, so that the average listener will hear it at least three times, we must know the formula for calculating the Average Frequency:

  • AVERAGE FREQUENCY (AF) = AQH × Number of Spots Per Week / CUME
  • Using simple algebra, and assuming that we want an Average Frequency of three (3.0), we can then determine the following formula:

  • NUMBER OF SPOTS PER WEEK = AF × CUME / AQH
  • Example #1 above described a station with a low level of listener loyalty (AQH=100, CUME=20,000). This is reflected in the number of radio spots which would have to be purchased in order to obtain a frequency of 3:

  • NUMBER OF SPOTS PER WEEK = (3 × 20,000) / 100 = 60,000 / 100 = 600 qtr hrs
  • Example #2 had a much more loyal audience (AQH=2500, CUME=10,000). This is reflected in the relatively few number of radio spots which would have to be purchased to obtain a frequency of 3:

  • NUMBER OF SPOTS PER WEEK = (3 × 10,000) / 2,500 = 30,000 / 2,500 = 12 qtr hrs
  • COMPARING COSTS

    Knowing the Time Spent Listening (TSL) and Average Frequency (AF) is essential to understanding audience loyalty and the number of spots which need to be purchased to produce results in an advertising campaign. But those statistics are insufficient if not combined with data about the cost of advertising on each station.

    In the highly competitive radio broadcasting business, salespersons are sometimes misleading in their claims about costs. One salesperson may say, “I’ll sell you my spots for $3.00 each!” Sounds like a bargain. Another may charge as much as $50.00 each. Sounds much higher. But is it?

    COST PER THOUSAND (CPM): To compare the cost of advertising on one station with the cost of advertising on another, we need to know more than the cost per spot. We need to know the cost per thousand persons. In radio, this is always based on AQH statistics. The formula looks like this:

  • COST PER THOUSAND (CPM) = Cost Per Spot / (AQH / 1,000)
  • Dividing the AQH by 1000 gives you the “number of thousands” being purchased. Dividing that result into the cost per spot gives you the cost per thousand.

    Example #1: Suppose that the station which charges $3.00 per spot is the one above with an AQH of 100 persons. The CPM would calculate as follows:

  • COST PER THOUSAND (CPM) = $3.00 / (100 / 1,000) = $3 / 0.1 = $30.00
  • Example #2: Suppose that the station which charges $50.00 per spot is the one above with an AQH of 2500 persons. The CPM would calculate as follows:

  • COST PER THOUSAND (CPM) = $50.00 / (2,500 / 1,000) = $50.00 / 2.5 = $20.00
  • The $50.00 per spot station charges only 2/3 as much to reach a thousand people as does the $3.00 station.

    COST PER POINT (CPP): A more useful comparison takes into account the loyalty of the audience, and also accounts for the cost per spot. This comparison is called the cost per point. It is calculated by determining the AQH rating points of the station, and then dividing the cost per spot by those rating points:

  • COST PER POINT (CPP) = Cost Per Spot / ((AQH ÷ Total Population) × 100 )
  • The formula below the line calculates the AQH rating points for the station. This is divided into the cost per spot to determine the cost per point.

    Example #1: If our first example station above (the one with an AQH of 100 and a cost per spot of $3.00) were in a market where 100,000 teens reside, the CPP would look like this:

  • COST PER POINT (CPP) = $3.00 / ((100 / 100,000) x 100) = $3.00 / 0.1 = $30.00
  • Example #2: If our second example station above (the one with an AQH of 2500 and a cost per spot of $50.00) were in the same market of 100,000 teens, the CPP would look like this:

  • COST PER POINT (CPP) = $50.00 / ((2,500 / 100,000) x 100) = $50.00 / 2.5 = $20.00
  • TOTAL BUDGET

    Comparisons are fine for determining which stations are most efficient in delivering an appropriate audience. But once these determinations have been made, we must combine cost information with the Average Frequency (AF) statistic to determine the total budget needed for minimum advertising effectiveness (a frequency of three). Our two stations looked like this:

    Category Example #1 Example #2
    AQH 100 2,500
    CUME 20,000 10,000
    Spots needed for a frequency of 3 600 12
    Cost per spot $3.00 $50.00
    Minimum Effective Budget $1,800 $600.00

    The minimum effective budget is determined by multiplying the number of spots needed for a frequency of 3.0 by the cost per spot. From this we can see that the first station, which proudly announces it will sell spots for $3.00 each, is actually a very expensive buy. It requires $1,800.00 of advertising to achieve a frequency of 3.0. The second station appears on the surface to be more expensive ($50.00 per spot), but actually costs only 1/3 as much ($600.00) to achieve the same frequency of 3.0. Based on these data, which station would you buy? The answer should be obvious.

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    Ratings, Share, HUTs and PUTs

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    Rating is the audience of a particular program or station at a specific period of time expressed as a percentage of the audience population. The percent sign is not shown, and the rating may represent household viewing or a specific demographic audience segment’s listening or viewing.

    Share is the audience of a particular television program or time period expressed as a percent of the population viewing TV at that particular time. Share, then, is a percent allocation of the viewing audience and differs from the rating which is a percent of the potential audience. Share is usually reported on a household basis.

    HUT or homes using television at a particular time is expressed as a percent of all TV homes. HUT differs from rating because it combines all viewing, rather than identifying specific program viewing.

    PUT or persons using television at a particular time, is expressed as a percent of all persons in TV homes. PUT combines all persons viewing. Note: PUT and PVT (persons viewing television) are interchangeable terms in common usage.

    GRPs The aggregate total (the sum) of the ratings is called Gross Rating Points or GRPs. The term GRPs is generic and may refer to household GRPs or to specific target segment GRPs.

    The aggregate total (the sum) of the ratings is called Gross Rating Points or GRPs. The sum of the ratings of a specific demographic segment maybe called Target Audience GRPs or more simply TRPs. The term GRPs is generic and may refer to household GRPs or to specific target segment GRPs.

    Reach is the number or percent of different homes of persons exposed at least once to an advertising schedule over a specific period of time. Reach, then, excludes duplication.

    Frequency is the number of times that the average household or person is exposed to the schedule among those persons reached in the specific period of time. Because it is an average frequency, dispersion of frequency of exposure will differ between specific schedules and daypart mixes.

    GRPs, Reach, and Frequency are mathematically related in the following ways:

    GRPs = Reach x Frequency

    Reach = GRPs/Frequency

    Frequency = GRPs/Reach

    Brand Development Index (BDI) relates the percent of a brand’s sales in a market to the percent of the US population in that same market.

    Category Development Index (CDI) relates the percent of a category’s sales in a market to the percent of the US population in that same market.

    Formula:

    BDI = % of a brand’s total US Sales in “Market X” x 100 (% of the total US population in “Market X”)

    CDI = % of a category’s total US sales in “Market X” x 100 ( % of the total US population in “Market X”)

    Points to remember:

  • Indexes should be expressed as whole numbers.
  • BDI and CDI assume that the US population represents the “norm” or base of “100″.
  • Markets with the highest index numbers do not necessarily represent the best potential.
  • Cost Per Thousand (CPM) allows a media planner to compare media based on two variables: audience and cost. CPM is used as a comparative device. The lowest cost per thousand medium is the most efficient, all other variables being equal. Often times the media with the lowest cost per thousand are selected, but not always. CPM may be computed for a printed page or broadcast time, and the audience base may be either circulation, homes reached, readers, or number of audience members of any kind of demographic or product usage classification.

      For print media (when audience data are not available):

      CPM = Cost of 1 ad x 1000 Circulation

      Because many print media do not have audience research data, this formula is often used.

      For print media (when audience data is available):

      CPM = Cost of 1 ad x 1000 Number of prospects reached

      For broadcast media (based on homes reached by a given program or time period):

      CPM = Cost of 1 unit of time (commercial) x 1000 Number of homes reached by a given program or time period

      For broadcast media (when audience data is available):

      CPM = Cost of 1 unit of time (commercial) x 1000 Number of prospects reached by a given program or time period

      For newspaper (when cost of ad is known):

      CPM = Cost of ad x 1000 Circulation

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