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
In sampling, this is a subset of the population, often randomly chosen and preferably representative of the population as a whole
Sample
If the study were repeated with the same population, sampling, and methods, the results would be the same.
Reliability
Whether your data and analysis accurately represent reality.
Validity
The findings apply to everyone in the studied population. This is mostly a question of whether the results are based on a large and representative probability sample of the population being studied
Generalizability
Convenience sampling is a type of sampling technique wherein you collect data from an available source that is cheap and easy to access.
nonprobability
Conversely, in sampling, every member of the population has at least some chance of being selected.
random
A variable is
Numeric
Otherwise, the variable is
categorical
A categorical variable is
ordinal
if there is a natural ordering of its possible values. If there is no natural ordering, it is
nominal
Which of the following is a commonly accepted table design principle? Select all that apply.
Make column headers stand out above the data.
,
Use light shading to separate rows or columns.
,
Avoid repetition by placing labels only in the first row.
Audience members are considered a commodity by media companies.
True
What has the explosion of media platforms and content choices created for media companies and advertisers? Select all that apply.
Fragmented audiences,
Increased competition for advertising revenue
They want to reach as many people as possible, for every advertising dollar spent.
Audience Size
They want to reach audiences made up of the people most likely to buy whatever they’re advertising.
Audience Quality
They want to reach as many high-quality audience members as possible at as low a per-person cost as possible
Return on Advertising Spend
_____ are companies that buy advertising time and space from media companies. Their goal is
Advertisers
______or to make potential customers aware that their product or service exists and to try to convince the audience to buy it.
awareness
_____are companies that sell advertising time and space to people who want to market something.
media companies
Their goal is ____ Selling advertising historically has been where they make most of their money
profit
Data Brokers
The capabilities and volume of data collected on consumers is vast
-Through analysis and segmentation of these attributes, data brokers can identify and “create” audiences
-Data companies provide something akin to “secret consumer scores” that rate consumers on things like risk, trustworthiness, or whether they have been “high-maintenance” as consumers.
Microtargeting
A marketing strategy that uses consumer data and demographics to create audience subsets/segments
Predict the buying behavior of these like minded individuals and to influence that behavior through hyper targeted advertising
Geolocation & Geogencing
Tracks consumers movements and allows a business to serve up targeted content such as ads or coupons when a user gets within a certain distance of the business.
Artificial Intelligence
A system’s ability to interpret external data correctly, to learn from such data, and to use those learnings to achieve specific goals and tasks through flexible adaption.
- Encompasses a vast array of technologies
-Emerging area: emotional intelligence and facial recognition.
Common Online Metrics
Conversion rate: Refers to any desired outcome from a website. Often used to refer to sales of other financial outcomes. Calculated as outcomes divided by Unique Visitors and is expressed as a percentage
Length of visit: During the reporting period, what is the quality of the visit as represented by the length of a visitor session in seconds
Depth of visit: During a given period, what is the distribution of the number of pages in each visit to the website
Economic value: The total dollars in Economic Value added to your business bottom-line by visitors to your website.
Vanity Metrics
Some of the least useful metrics are common forms such as likes, followers, fans, retweets, and so forth
-They sound impressive, and many companies brag about them but they don’t really tell us anything meaningful.
Consumer Privacy:
Online and mobile consumers are rightly concerned about their privacy and online security
Privacy and security breaches can be the unfortunate trade-offs of our desire to be more connected.
A/B testing
A/B Testing: Experimental process of testing in which two alternative options are evaluated by audiences, often in real time.
Unique Visitors
It tells us how many different individuals visited a website within A GIVEN TIME PERIOD
No duplication.
Time on page/site:
Tells us the amount of time a person spends on a particular page or on the entire website during a session.
Visits, visitors, or sessions:
How many times was someone on your website within a given time period?
Bounce Rate
How often people come but leave right away.
What may contribute to a high bounce rate this?
