Week 2 [400 to 406] (Research Application: Advertising and PR) Flashcards
(23 cards)
What is the term used to describe the total number of households or persons exposed to a message in a particular medium at least once over a certain time period?
a) Frequency
b) Gross Rating Points (GRPs)
c) Reach
d) Cost Per Thousand (CPM)
c) Reach
Explanation:
Reach refers to the total number of households or persons exposed to a message in a particular medium at least once over a specific time period. It is expressed as a percentage of the total universe of households. For example, if 25 out of 100 households are exposed to a message, the reach is 25%.
What does “frequency” refer to in media research?
a) The total number of households exposed to a message
b) The number of exposures to the same message that each household or person receives
c) The cost of reaching 1,000 households
d) The demographic composition of the audience
b) The number of exposures to the same message that each household or person receives
Explanation:
Frequency refers to the number of times a household or person is exposed to the same message. It is often expressed as an average frequency, calculated by dividing the total number of exposures by the reach. For example, if the total number of exposures is 400 and the reach is 25, the average frequency is 16.
How are Gross Rating Points (GRPs) calculated?
a) Reach × Frequency
b) Reach ÷ Frequency
c) Cost Per Thousand (CPM) × Reach
d) Frequency ÷ Reach
a) Reach × Frequency
Explanation:
GRPs are calculated by multiplying reach (expressed as a percentage) by the average frequency. For example, if a program has a reach of 30% and an average frequency of 2.5, the GRPs would be 75 (30 × 2.5). GRPs help advertisers compare the effectiveness of different media options.
EXAMPLE?
What does CPM stand for in media research, and how is it calculated?
a) Cost Per Million; Ad Cost ÷ Circulation
b) Cost Per Thousand; Ad Cost ÷ (Circulation ÷ 1,000)
c) Cost Per Message; Ad Cost × Reach
d) Cost Per Medium; Ad Cost × Frequency
b) Cost Per Thousand; Ad Cost ÷ (Circulation ÷ 1,000)
Explanation:
CPM stands for Cost Per Thousand and is calculated by dividing the cost of an ad by the circulation (in thousands). For example, if an ad costs
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1,800andthecirculationis180,000,theCPMis10 ($1,800 ÷ 180). CPM helps advertisers compare the efficiency of different media vehicles.
What is the term used to describe the number of copies distributed per issue of a newspaper or magazine?
a) Reach
b) Frequency
c) Circulation
d) Gross Rating Points (GRPs)
c) Circulation
Explanation:
Circulation refers to the number of copies distributed per issue of a newspaper or magazine, including both subscriptions and newsstand sales. It is a key metric used to determine advertising rates and is verified by organizations like the Audit Bureau of Circulations (ABC).
What is the primary role of the Audit Bureau of Circulations (ABC) in media research?
a) To measure TV audience ratings
b) To verify the circulation figures of newspapers and magazines
c) To calculate Gross Rating Points (GRPs)
d) To conduct readership surveys
b) To verify the circulation figures of newspapers and magazines
Explanation:
The ABC verifies the circulation figures of newspapers and magazines by auditing publishers’ records. This ensures that the reported circulation numbers are accurate, which is crucial for determining advertising rates and CPM.
Which of the following techniques involves showing respondents the logo or cover of a publication and asking them to identify articles or stories they recognize?
a) Unaided recall
b) Aided recall
c) Recognition method
d) Masked recall
c) Recognition method
Explanation:
The recognition method involves showing respondents the logo or cover of a publication and asking them to identify articles or stories they recognize. This method is considered one of the most accurate ways to measure readership.
Why is audience composition an important factor in determining advertising efficiency?
a) It measures the total number of readers per issue
b) It identifies the demographic characteristics of potential customers
c) It calculates the cost of reaching 1,000 households
d) It determines the frequency of exposure
b) It identifies the demographic characteristics of potential customers
Explanation:
Audience composition is important because it helps advertisers determine whether the audience of a publication matches the demographic profile of their target customers. For example, an ad for farm equipment would be more effective in a publication read by farmers than in one read by urban professionals.
What is the primary goal of stepwise analysis in media research?
a) To calculate Gross Rating Points (GRPs)
b) To determine the optimal combination of media vehicles for maximum reach and frequency
c) To measure the cost per thousand (CPM)
d) To verify circulation figures
b) To determine the optimal combination of media vehicles for maximum reach and frequency
Explanation:
Stepwise analysis is an iterative model that constructs a media schedule by selecting the most efficient media vehicles first and then reevaluating the remaining options until the optimal exposure rate is achieved. It is often compared to gold mining, where the easiest-to-reach consumers are targeted first.
What is an “objective function” in decision calculus models?
a) A measure of circulation
b) A mathematical statement that quantifies the effectiveness of a media schedule
c) A method for calculating CPM
d) A technique for measuring readership
b) A mathematical statement that quantifies the effectiveness of a media schedule
Explanation:
An objective function is a mathematical statement that provides a quantitative value for a media schedule’s effectiveness in delivering advertising exposure. It takes into account factors like audience size, composition, and the probability that the ad will be forgotten.
What is the term used to describe the use of multiple media simultaneously to maximize reach and frequency?
a) Stepwise analysis
b) Decision calculus
c) Synergistic advertising
d) Gross Rating Points (GRPs)
c) Synergistic advertising
Explanation:
Synergistic advertising involves using multiple media (e.g., TV, radio, print, and digital) simultaneously to maximize reach and frequency. This approach is often used by advertisers with larger budgets to ensure their message reaches a wider audience.
What technique does Gfk MRI use to measure magazine readership?
a) Unaided recall
b) Aided recall
c) Recent reading method
d) Recognition method
c) Recent reading method
Explanation:
Gfk MRI uses the recent reading method, where respondents are shown the logos of about 70 magazines and asked which ones they have recently read or looked through. This method provides detailed data on the demographic makeup and purchasing behavior of each magazine’s audience.
Which companies provide audience data for radio and television, respectively?
a) ABC and Gfk MRI
b) Arbitron and Nielsen
c) Nielsen and ABC
d) Gfk MRI and Arbitron
b) Arbitron and Nielsen
Explanation:
Arbitron measures radio listening in about 270 markets across the U.S., while Nielsen provides audience estimates for network and local television markets. Both companies play a crucial role in helping advertisers understand the size and composition of broadcast audiences.
A soft drink company runs a TV ad during a popular sports event and wants to measure how many households were exposed to the ad at least once during the campaign period. Which metric should the company use?
a) Frequency
b) Gross Rating Points (GRPs)
c) Reach
d) Cost Per Thousand (CPM)
c) Reach
Explanation:
Reach measures the total number of households or persons exposed to a message at least once over a specific time period. For example, if 60% of the target audience saw the ad, the reach is 60%.
Real-life Scenario:
A soft drink company runs a TV ad during a sports event and finds that 60% of the target audience (18-35-year-olds) saw the ad at least once. This 60% represents the reach of the campaign.
A car manufacturer runs a radio ad 10 times a day for a week and wants to know how many times the average listener heard the ad. Which metric should they use?
a) Reach
b) Frequency
c) Gross Rating Points (GRPs)
d) Cost Per Thousand (CPM)
b) Frequency
Explanation:
Frequency measures the average number of times a household or person is exposed to the same message. For example, if the average listener heard the ad 7 times, the frequency is 7.
Real-life Scenario:
A car manufacturer runs a radio ad 10 times a day for a week. After analyzing the data, they find that the average listener heard the ad 7 times. This means the frequency of the ad is 7.
A fashion brand runs a TV ad campaign with a reach of 40% and an average frequency of 3. What are the Gross Rating Points (GRPs) for this campaign?
a) 12
b) 120
c) 1,200
d) 120,000
b) 120
Explanation:
GRPs are calculated by multiplying reach (as a percentage) by the average frequency. In this case, 40 (reach) × 3 (frequency) = 120 GRPs.
Real-life Scenario:
A fashion brand runs a TV ad campaign with a reach of 40% and an average frequency of 3. The campaign generates 120 GRPs, indicating a strong overall exposure to the target audience.
A tech company places an ad in a magazine with a circulation of 200,000. The ad costs
2
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000.
WhatistheCPMforthisad?
a) 2,000
b) 10
c) 100
d) 1,000
b) $10
Explanation:
CPM is calculated by dividing the ad cost by the circulation (in thousands). Here,
2
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000
÷
(
200
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000
÷
1
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)
=
2,000÷(200,000÷1,000)=10 CPM.
Real-life Scenario:
A tech company places an ad in a magazine with a circulation of 200,000. The ad costs
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2,000,resultinginaCPMof10. This helps the company compare the efficiency of this magazine with other advertising options.
An advertiser wants to place an ad in a newspaper but is unsure about the publisher’s claimed circulation of 300,000. How can they verify this number?
a) By calculating the CPM
b) By using the Audit Bureau of Circulations (ABC)
c) By conducting a focus group
d) By measuring GRPs
b) By using the Audit Bureau of Circulations (ABC)
Explanation:
The ABC verifies the circulation figures of newspapers and magazines by auditing publishers’ records. This ensures that the reported numbers are accurate.
Real-life Scenario:
An advertiser checks the ABC report to confirm that a newspaper’s claimed circulation of 300,000 is accurate before placing an ad, ensuring confidence in their advertising investment.
A lifestyle magazine wants to measure how many readers actually looked through their latest issue. Which technique should they use?
a) Unaided recall
b) Aided recall
c) Recognition method
d) Masked recall
c) Recognition method
Explanation:
The recognition method involves showing respondents the logo or cover of a publication and asking them to identify articles or stories they recognize. This method is considered one of the most accurate ways to measure readership.
Real-life Scenario:
A lifestyle magazine uses the recognition method by showing respondents the cover and asking them to identify articles they remember reading. This helps the publisher understand reader engagement.
A baby product company wants to advertise in a magazine. Why is audience composition important for this decision?
a) To calculate the CPM
b) To ensure the magazine’s readers match their target demographic (e.g., parents with young children)
c) To measure the frequency of exposure
d) To determine the reach of the ad
b) To ensure the magazine’s readers match their target demographic (e.g., parents with young children)
Explanation:
Audience composition helps advertisers determine whether the audience of a publication matches the demographic profile of their target customers. For example, a baby product ad would be more effective in a parenting magazine than in a sports magazine.
Real-life Scenario:
A baby product company advertises in a parenting magazine because its audience consists primarily of parents with young children. This ensures that the ad reaches the right demographic, increasing the likelihood of sales.
A small startup with a limited advertising budget wants to maximize its advertising reach. Which method should they use to select the most efficient media vehicles?
a) Gross Rating Points (GRPs)
b) Stepwise analysis
c) Cost Per Thousand (CPM)
d) Recognition method
b) Stepwise analysis
Explanation:
Stepwise analysis is an iterative model that selects the most efficient media vehicles first and then reevaluates the remaining options until the optimal exposure rate is achieved. It is ideal for companies with limited budgets.
Real-life Scenario:
A small startup uses stepwise analysis to select the most cost-effective media vehicles, first targeting the easiest-to-reach consumers and then expanding their campaign as their budget allows.
A tech company launches a new smartphone and runs ads on TV, radio, and social media simultaneously to promote the product. What is this strategy called?
a) Stepwise analysis
b) Decision calculus
c) Synergistic advertising
d) Gross Rating Points (GRPs)
c) Synergistic advertising
Explanation:
Synergistic advertising involves using multiple media (e.g., TV, radio, print, and digital) simultaneously to maximize reach and frequency. This approach ensures that the message reaches a wider audience.
Real-life Scenario:
A tech company runs ads on TV, radio, and social media at the same time to promote a new smartphone. This synergistic approach ensures that the product reaches a diverse audience, increasing brand awareness and sales.
A fashion magazine wants detailed data on the demographic makeup and purchasing behavior of its readers. Which method should they use?
a) Unaided recall
b) Aided recall
c) Recent reading method
d) Recognition method
c) Recent reading method
Explanation:
Gfk MRI uses the recent reading method, where respondents are shown the logos of about 70 magazines and asked which ones they have recently read or looked through. This method provides detailed data on the audience.
Real-life Scenario:
A fashion magazine uses the recent reading method to gather data on its readers’ demographics and purchasing behavior. This information helps the magazine attract advertisers targeting specific consumer groups.
