Final Flashcards
Why do advertisers buy time and space around media content?
To reach the consumers most likely to buy their products
What is the common foundation of major media revenue models?
Advertising space
Advertisers consider all audiences to be equally valuable.
False
What is subscription churn?
The rate at which subscribers cancel their subscriptions
The amount of consumer or audience [demand] for any product is based on three primary mechanisms: the [utility] or usefulness of the product to the buyer or audience member; the amount of product available ([supply]); and the product’s [price]. The idea of utility is obvious. If something is useless to you or you don’t like it, then you won’t want it, regardless of its price. But if a product is useful to you in some way, you’ll want it, thus creating demand for it.
demand, utility, supply, price
What do most media companies produce, sell, and distribute?
Information products
What is compatibility in the context of maximizing audiences?
Delivering content that matches the audience available to consume content at any particular time
What does audience flow refer to?
Selecting and scheduling content to keep audiences on a company’s channel, app, or website
What is habit formation in the context of maximizing audiences?
Creating a preference for a company’s brand
How are advertising prices usually calculated for most media?
Based on CPMs
For most media, advertising prices are calculated on the basis of CPMs, which stands for cost per million.
‘False’
Media often charge more to deliver audiences that are harder to reach.
True
What are the primary factors that advertisers want in an audience? Select all that apply
Audience size,
Audience quality,
High return on investment (ROI) or return on advertising spend (ROAS)
Why do advertisers demand more precise audience information?
To target their ad spends more precisely
Media producers pay almost all the costs of creating content—a film, book, TV series, video game, etc.—up front. That is, they have to pay the complete cost of production just to create the first copy of the content and before the first audience member ever sees it.
High First Copy Costs
Unlike most consumer products, the “price” of information products includes the time spent consuming it. In most cases, there is an inverse relationship between the time required to consume a piece of content and audience demand.
Time Cost of Consumption
Advertising-supported media—which is the majority of media—sell simultaneously to audiences (the content) and advertisers or underwriters (messaging time or space).
Joint Commodity Characteristics
Something that is not depleted when it is consumed.
Public Good
The value something generates for society that the producer does not get fully paid for by the people buying the product. In other words, it is the ripple effects a product or service has on society that are not built into the price.
Externality
Easily influenced recipients of media messages.
Audience members actively choose media content that meets their personal needs and interpret that content through their own frames of reference.
Passive Audience
Active Audience
In sampling, this includes all of the entities of interest in a study (people, households, machines, etc.).
Population
