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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