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Quantitative AdvertisingResearch
Instructor: Terry Maher
Temple University
The School of Communications and Theater
Department of Advertising
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Quantitative Advertising Research
February 3, 2011
Class #3
Brief History of Advertising Research
ADV 3042 (Section 001) Spring 2011
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Where to Begin?
Some Definitions
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Quantitative Advertising Research
Audience Research Marketing Research
Who is Most Likely to Consume My Product/Service
Media Research Who is Watching/Listening/Reading the Media Vehicles
Where My Ads are Running? How many are exposed to the commercials on these media?
Creative Research What Effect is the Creative Message?
Ad Campaign Research What Affect did the Combination of Creative and Media Have on
the Marketers
What were the results? Sales!!
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Marketing Research
Research that enables a marketer toidentify the target for his product, service,etc.
Often, this is not completed (or evenattempted) by the time the advertising isabout to be planned.
This class will dig deeper into marketingresearch (mainly MRI) later in thesemester.
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Media Research
Research that measures the audiences ofmedia
Syndicated services such as Nielsen,Arbitron, comScore, Scarborough, andMRI dominate the industry.
I hope the class will know as much aboutthese services as seasoned pros beforethe semester is over.
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Creative Research
Research that measures the effectivenessof the advertisings creative
This is primary research conductedspecifically for each commercial
The class will dig deeper into this aspectof research in the second half of thesemester
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Ad Campaign Research
What affect did the ad campaign have onthe marketing objectives?
Was Awareness of the Advertised Brand
Increased? Sales?
Other?
We will learn to apply correlation andregression analysis to measure theeffectiveness of an ad campaign
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Media Research
The bulk of quantitative advertisingresearch is media research
More specificallyits media audiencemeasurement
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Quantitative Media/Audience Research
Audience Measurement is the media industrysfoundation for setting prices and justifying costs for theircontent.
Many, if not most, in the industry are thrust into media
business and begin using the results of audienceratings without ever gaining an insight about thelegitimacy of these audience measurements.
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What is Audience Measurement?
Its the science of measuring the
audiences of various media
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Whats an audience?
Audience a group of listeners or spectators. (Merriam-Websters dictionary)
In the media industry, an audience is number of people
who are exposed to the medium. Exposure: the opportunity to experience the medium(i.e. watch the program, listen to the disc jockey, read thepaper, etc.).
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Exposure Opportunity
For the advertising business, it measuresthe number of people who had anexposure opportunity to a ad message.
Audience Measurement services estimatethe number of people who had the
opportunity to experience a medium.
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MeasurementAn Exact Measurement?
No syndicated service conducts a census.
Sample survey measurements
Even if the entire population was included i.e., a census was conductedwould the measurements accurately count the media audiences?
Are personal interviews, diaries, meters entirely accurate in measuringwhat theyre designed to measure?
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How would you measure these media?
Newspapers
Online
Magazines
Outdoor (Out-of-Home -- billboards, etc.)
Radio Television
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Each Medium is Measured by DifferentMethodologies!!
Newspapers
Online
Magazines
Outdoor (Out-of-Home -- billboards, etc.)
Radio Television
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Just sit back and listen now.
Enjoy it
Consider it a very low budget documentary
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Brief History of AudienceMeasurement
Newspapers
Revenue = (Paid Circulation X Price) + Advertising Sales
A newspapers circulation determined itsvalue as an advertising medium and itsvalue to the owner or potential owner
1704 First Newspaper Ad
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Brief History of AudienceMeasurement
Magazines
Prior to 1880, only the wealthy could afford them
McClures and Munseys -- circulation wars of thelate 19th Century.
Dropped their prices and circulation soared.
A magazines circulation determined its value
as an advertising medium and its value to theowner or potential owner
Revenue = (Paid Circulation X Price) + Advertising Sales
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Circulation
Print medias audience measurement
standard for decades (centuries).
Audit Bureau of Circulation 1914More than two centuries after first paid newspaper ad!
Less than two decades prior to a major media challenge
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Radio
1885 Marconi sent the first radiotransmission
1920 KDKA Pittsburgh
1922 WEAF New York sells the firstcommercial air time
http://upload.wikimedia.org/wikipedia/commons/8/87/Warren_G_Harding_portrait_as_senator_June_1920.jpghttp://upload.wikimedia.org/wikipedia/en/3/3b/Marconi.jpg8/2/2019 History of Ad Research
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Radio
WEAF sells 10 minutes of commercialtime for $100
How did the advertiser determine if thecommercials were worth $100?
How did WEAF determine how toprice the commercials?
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Radio
How did they estimate the WEAFs radio
audience?
Who had the bigger need to measurethe radio audience?
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Radio Audience Measurement History
1929 Archibald Crossley conducted the firsttelephone media measurement survey measuredradio audience for Eastman Kodak
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1930s Radio
http://xroads.virginia.edu/~1930s/RADIO/audio_archive/charlie/charlie.ramhttp://xroads.virginia.edu/~1930s/RADIO/audio_archive/lone/lone.ramhttp://xroads.virginia.edu/~1930s/RADIO/audio_archive/burns/burns.movhttp://xroads.virginia.edu/~1930s/RADIO/audio_archive/benny/benny3.ramhttp://xroads.virginia.edu/~1930s/RADIO/audio_archive/amosandy/amosandy.mov8/2/2019 History of Ad Research
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1930s Radio
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The Crossley Ratings
Telephone calls were made 4 different times per day
The surveys primarily measured network radio programlistening across the country.
Respondents were asked to recall their radio listening forthe previous 3-6 hours.
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George Gallup
Young & Rubicam researcher
Telephone coincidental survey
What are you listening to now?
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Coincidental vs. Recall
Coincidental method reported less radiolistening than the recall method.
Coincidental method could not measure the out-
of-home radio audience.
Both methods only measured people who livedin home that had telephones.
More radio homes than telephone homes in the1930s.
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Coincidental vs. Recall
Todays Radio Measurement?
Is it Coincidental?
Is it Recall?
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Coincidental vs. Recall
Todays TV Measurement?
Is it Coincidental?
Is it Recall?
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Hooperatings
Claude Hooper and Montgomery Clarksaw an opportunity
Clark-Hooper formed in 1934
Syndicated radio ratings service in 16cities
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Hooperatings
To what program were you listening?
What station were you listening to?
What advertiser sponsors the program you
were listening to?
Were you listening to the radio just now?
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Crossley Ratings vs. Hooperatings
Crossley Telephone Recall
Hooper Telephone Coincidental
In the 1940s, Hooper purchased CAB (theCrossley Ratings)
Eventually, Hooper sold his company to A.C.
Nielsen.
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Personal Interviews
1920s and 30s, Daniel Starch conducted
personal interview surveys for variousclients including NBC and CBS radio.
Results were for internal information, notcurrency to buy and sell commercials.
1939 Sydney Rostow and PaulLagarsfeld began a service that measuredradio listening. The Pulse of New York.
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The Pulse of New York
Randomly selected New Yorkers
Roster Recall
Each given a roster of radio programs to aidin their memory. Asked to list the programslistened to in the past several hours.
The Pulse was local, while Hooper wasnational (spot radio vs. network radio)
Quick Class Summary
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Quick Class SummaryThrough the 1930s
Radio used telephone surveys and personal
interviews to measure their audiences
Newspapers and Magazines used circulationdata to measure their audiences
TV wasnt viable yet
What type of recording methodology wouldyou devise to measure radio (and TV)audiences if you were a broadcast pioneer?
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Meters 1929 Claude Robinson patented a device that recorded
what station a radio was tuned at different times. Claude sold the patent to RCA, who owned NBC radio.
1933-34 Robert Elder and Louis Woodruff invented theAudimeter
RCA had the patent rights to Robinsons similar device.
RCA gave Elder and Woodruff the approval to proceed.
1936 Audimeter field tested in Boston
Arthur Nielsen heard a speech by Elder and wasfascinated.
1938 Nielsen bought the device from Elder and Woodruff
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The Audimeter
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Arthur Nielsen
Arthur Nielsen
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Arthur Nielsen Engineering graduate from University of Wisconsin
Tested industrial equipment
1923 Developed a consumer purchase measurement based on a panel of storesA.C. Nielsen company counted store inventory at various intervals todetermine what products were selling
1942 Launched Nielsen Radio Index (NRI)
800 homes were equipped with the Audimeter
Technicians came periodically to retrieve the paper with the data and toinstall more paper
Technicians also inventoried the households food inventory
1950 Purchased Hoopers national ratings
1950 Nielsen Television Index (NTI) measured network TV
1955 Nielsen Station Index (NSI) measured local radio and TV
16mm file cartridge instead of paper (mailed by respondents to Nielsenheadquarters no more technicians).
1963 Ceased its radio Audimeter reports. Too many stations on the dial hadcompromised the devices accuracy.
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Mailable Audimeter
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Meters Today
Nielsen NTI uses people meters
What about the diary?
Nielsen NSI uses household meters (similar to the earlyAudimeters) in 31 markets
Nielsen uses Local People Meters currently in 25 markets
Arbitron uses Portable Personal Meters in 33 Markets.
comScore and Nielsen Net Ratings use recording devices onpersonal computers (similar to meters)
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Diaries
Meters measured household audiences
1950s Nielsen sent respondents in its
metered households diaries to write down
their TV viewing
Advertisers need people audiences
demographic targets.
Di i
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Diaries
Listening Table 1937 Garnet Garrison, University of
Michigan professor
A program roster accompanied the diary
A diary with a grid from 6am to 12 midnight, with quarterhour intervals
Respondents were asked to list the station, program,and number of listeners
Hooper added diaries to his telephone coincidental toreach rural households
The first TV audience measurements used diaries
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American Research Bureau (ARB) James Seilerresearch director at NBCs Washington TV station
May 11-18 1949; Ed Sullivans Sunday night Toast of the Townhad a 66.4rating.
Big proponent of diaries
Left NBC and started American Research Bureau
Survey data was included (respondent demos; response rates)Whats Wrong With this Rating?
Demographic information was reported
Measured every TV market at least twice a year
1951 Merged with Tele-Que, a research company that measured LosAngeles, San Diego, and San Francisco TV audiences
ARB tried to use meters that could send data over telephone lines butNielsen had a patent on almost every conceivable audience meter
1965 Nielsen quit the radio measurement business. ARB began to use
diaries to provide local radio reports.
1973 ARB changed its name to Arbitron still called ARB by many(especially older industry types)
November 1993 Arbitron abandoned its TV audience measurement service
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Two Left Standing Nielsen - Television
Arbitron - Radio
http://www.arbitron.com/home/content.stmhttp://www.nielsen.com/index.html8/2/2019 History of Ad Research
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Quick Class Summary IIRadio Audience Measurement Devices:
Telephone recall (Crossley 1930) to telephone coincidental (Hooper 1934)
to meters (Nielsen 1942) to diaries (ARB 1964) to meters (Arbitron 2007)
Television Audience Measurement Devices:
Diaries (ARB 1949) to Meters (Nielsen 1950) to Diaries (Nielsen 1955)
to Meters (Nielsen 2001)
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Terms and Definitions
Coverage - The % of a target audiencethat a media vehicle covers or reaches
= Vehicle Target Reach/Target Population
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Terms and Definitions
Composition - The % of a media vehicle that aparticular demographic target composes
Demographic Vehicle Audience/Total Vehicle Audience
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Terms and Definitions
Index - An indicator of the relative occurrence ofa media vehicles usage by a target
demographic group in relation to its occurrence
in the total population (or universe).= 100 x (% demo coverage/% universe coverage)= 100 x (% demo composition of vehicle/% democomposition of universe)The two equations always equal each other
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Terms and Definitions
ABC Family Channels Adults 18+ Universe Coverage =
57,302 / 225,887 = 25.4%
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Terms and DefinitionsCoverage
ABC Family Channels Women 18-34 Coverage =
12,531 / 34,196 = 36.6%
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Terms and DefinitionsComposition
ABC Family Channels Women 18-34 Composition =
12,531 / 57,302 = 21.9%
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Terms and DefinitionsIndex
ABC Family Channels Women 18-34 Index =
(ABC Family Channels W18-34 Coverage / ABC Family Channels Universe Coverage) x 100
(36.6 / 25.4) x 100 = 144.5
T d D fi i i
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Terms and DefinitionsIndex
ABC Family Channels Women 18-34 Index =
(ABC Family Channels W18-34 Composition / Universes W18-34 Composition) x 100
(21.9/ 15.1) x 100 = 144.5
T d D fi iti
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Terms and Definitions
RatingThe percentage of a targetaudience that is exposedto a medium. Expressedas a whole number ratherthan percentage
HUT orPVT
The percentage of a targetaudience that is watchingtelevision during a givenmeasurement interval.HUT stands forhouseholds usingtelevision; PVT stands for
persons viewing television
ShareThe stations target
audience divided bythe number oftarget people who
are watching TV atthe time. Its the
share of currentviewers tuned to astation
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Terms and Definitions
News Programs
AudienceCompositionMale - Female
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Terms and DefinitionsNews Programs Audience
Composition Age
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MRI
Please sign-up to access the MRIdatabase through the Temple libraryportal.
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Next Weeks Class:
Syndicated Research Overview
MRI+
Have a Good Week