Sponsor (July-Sept 1961)

RADIO RESEARCH TERMINOLOGY OF RADIO RESEARCH I he following paragraphs define nd describe terms and procedures sed in the calculation of various auience figures. Steps A through J jell out the method of computing )st per thousand starting with total . S. Homes as a base. It must be borne in mind that all ich audience calculations are estiates subject, at the least, to statis:al sampling errors which can proice variations up to 10 or 15%. !iese calculations also assume that urce data — NRI. ARB, Hooper, c — are unbiased representative mples projectable to U. S. totals, ich assumptions are not entirely lid. Therefore, the most that can said for such calculations is that • . are the best we can do with sic data available and are consid iably more realistic than estimates ade by print media. . S. HOMES A "home" includes all persons liv »s in a dwelling unit including fgers or servants. A person living bne or a group of unrelated persons saring living accommodations is al s a '■home/' I Census now calls them 'Useholds" but networks have areed to standardize on "homes.") KDIO HOMES Homes with at least one radio — nw estimated at 95% of U.S. Homes. KDIO HOMES — BMB AREA I he total number of radio homes i the counties comprising a station I network area which includes counts where 10% or more of the radio limes reported listening to the statin one or more times per week. VEEKLY AUDIENCE CIRCULATION) Number of homes listening to a sttion or network once a week or ' ncr. The weekly figure, which is aeflection of the combined effect of p sical coverage and program popno BASICS ularity, is a counterpart of circulation in printed media. PROGRAM AUDIENCE (HOMES REACHED) The number of homes reached by 6 minutes or more of a program. Calculated by multiplying total radio homes by Nielsen rating. Other ratings can also be used but Nielsen Ratings is most commonly used. PROGRAM LISTENERS The number of individuals reached by a program. Calculated by multiplying Program Audience (Homes) by listeners-per-set figure obtained either from Hooper coincidental telephone surveys or from ARB diary studies. COMMERCIAL AUDIENCE 1. Commercial Audience Rating: Homes tuned to one or more commercial announcements of a program expressed as a percent of all radio homes. Obtained from Nielsen as average commercial rating per broadcast during current two report weeks. 2. Commercial Audience [Homes): The number of homes tuned to one or more commercials of a program. Obtained by applying Commercial Audience Rating to total radio homes. 3. Listeners Reached by Commercials: The number of listeners tuned to one or more commercials of a program. Obtained by applying listeners per set (from Hooper or ARB) to Commercial Audience (Homes). COMMERCIAL IMPACTS Average number of commercial announcements on the program received per home. Data are reported as average number per broadcast during current two report weeks. COMMERCIAL IMPRESSIONS Number of listener-advertisingmessages delivered. (One listener hearing three commercials is recorded as three commercial Lmpressioi This measurement is obtained b either of the following methods: 1. \lultipl\ing ''Listeners Reached bj Commercials'" b\ "Commercial Impacts." Used when NRI data on Commercial Impacts is available. 2. Multiplying Werage Program Audience I using average audience rating rather than Nielsen rating I by number of listeners per set and then bj number of separate commercials. Ibis is a rough estimate method. Used when NRI data on commercial impacts not available. Cost per Thousand Just as there are many ways to calculate audience (in terms of homes, listeners, or impressions) there are many bases for "cost per thousand" calculations. There are likewise various cost figures which may be used (gross hour, net half-hour, time and talent combined, etc). Mathematically cost per thousand is computed by dividing cost tin dollars) by audience (in thousands I . Below are presented the most commonly used cost per thousand calculations. 1. Cost per thousand — Gross Circulation: This calculation is used largely for internal purposes in connection with rate studies and future forecasts. It employs Audience (Home) and the gross hour card rate. Example: NBC Continental U. S. — Network of 168 stations now costs $25,215 gross per hour. Dividing this by network audience of 34,900.000 gives Gross Hour costs per thousand of 72 cents. 2. Cost per thousand — Homes Reached: This index divides the net time and talent cost per program by number of homes reached. The calculations can be made for a particular advertiser or on a basis of the average of all half hour shows on a network or on all networks. 3. Cost per thousand — Commercial Impressions: The cost per thousand using net time and talent and number of commercial impressions as defined above. Generally used i 1 ) when live-a-week daytime show is being compared with half hour eve 81