Economics of the Mass Media

Question 1

audience support

Answer 1

-type of media support system
-audience pays directly for the use of the media
ex/ buying a book

Question 2

advertiser’s support

Answer 2

-type of media support system
content is provided free to audiences, money comes from advertisers
-money is paid by selling audiences to corporate advertisers
-recoop when products are purchased

Question 3

audience and advertiser’s supported

Answer 3

-type of media support system
-makes medium cheaper for audience
ex/ newspapers and magazines

Question 4

subsidized

Answer 4

• type of media support system
• private and publicly; somebody who is paying to support the media
• state and federal government (NPR & PBS); 2nd class mailing, tax credits
• corporation or nonprofit will underwrite magazine
• wealthy individuals - “angels”

Question 5

two things advertisers what to know

Answer 5

audience size and demographics

-size directly determine ticket sales, copies of a CD, circulation, subscriptions, etc.

Question 6

AC Nielson

Answer 6

used to measure audience size for broadcasting (TV and radio)-take a representative sample of whole country and use a people meter for each household

• people meter: every time you start watching TV, press button, register what you are watching, calculates minute-by-minute viewing
• companies want to know rating and share

Question 7

rating

Answer 7

number of TV homes watching a particular show / total number of TV homes in the U.S.
-gives absolute value

Question 8

share

Answer 8

number of TV homes watching a particular show/ total number of TV homes in U.S. with TV on at that time
-more specific measure of how a particular show does in comparison with shows on at the same time

Question 9

sweep months

Answer 9

• advertisers interested in local markets too
• February, March, and November
• local ad rates are set by sweep months
• generated by diaries
• networks present best programming during period
• move to put AC Nielson people meter in local markets to prevent bias

Question 10

portable people meter

Answer 10

cell-phone like device that you carry around with you and picks up your television viewing wherever you are
less problems than old people meter
-used for national numbers

Question 11

3 days of original airing

Answer 11

Ads rates can be determined from DVRs if viewed within time period

Question 12

geographic location

Answer 12

• demographic characteristic
• important to advertisers; advertise in areas where you have potential buyer
• cities tend to spend the most
• dense population = more bang for your buck

Question 13

age

Answer 13

demographic characteristic

• ex/ Kellogg’s for kids
• ads aren’t really interested in old people

Question 14

sex

Answer 14

demographic characteristic

-ex/ beer commercial during football game (young men most likely to buy)

Question 15

income

Answer 15

-demographic characteristic
-how much money they make
ex/ used to have ads for luxury cars on classical music radio stations

Question 16

employment patterns

Answer 16

• demographic characteristic
• working women rely on convenience foods (often ads seen in working women magazines)
• advertisers are interested in people who might buy their product

Question 17

issue of concentration

Answer 17

more and more of media falling into fewer hands; corporation of media companies

• some are concerned that so few people control most media content
• despite consolidation, exponential expansion of media options