CTVA 480 • Study Guide • Final Exam (Spring 2025)

What is demographic research?

quantitative information on the viewing, listening, and activity habits of an audience.

What are some of the categories of demographic data often used by media companies

1. Age

2. Gender

3. Race

4. Ethnicity

5. education level

6. household income

What is a rating?

Percent of households tuned to Program x 

What is a share?

Percent of viewing universe (households with their TV sets turned on) tuned to Program X

Formula for rating

Viewing households/TV households

Formula for share

Viewing households/Households watching TV

Which company specializes in providing ratings and data for television networks?

Nielsen Media Research

What is psychographic research?

beyond standard demographic data to offer input about audiences; delves into the “why” Focuses on consumer and lifestyle characteristics.

What are three major approaches to collecting psychographic data? 

1. Focus group 

2. Survey

3. Program Testing

What is VALS?

VALUES, ATTITUDES, LIFESTYLES.

What are some VALS types?

1. Innovators

2. Thinker

3. Achievers

4. Makers

5. Experiencers 

6. Believers

7. Strivers

8. Survivors

List the three types of program testing research

1. Concept Testing

2. Pilot Testing

3. Episode Testing

What is Concept Testing

Asking audiences whether they like the “ideas” for proposed programs

What is pilot testing?

Occurs when a network is considering the purchase of a new series and audiences are asked to react to the “pilot” episode

What is Episode testing?

Occurs when a series is already underway.

What are the three most common environments for conducting program testing research?  

Theaters

Cable Testing

Online 

How are Theaters used for program testing research?

Researchers invite people into a testing theater to watch a TV program, film, or commercial

How are Cable testing used for program testing research?

Researchers send alternate versions of pilot programs to different cable homes

How are Online used for program testing research?

Testing Streaming video over the Internet

List three of the types of data that media managers want for evaluating social media platforms?

1. Geodemographic

2. Behaviorgraphic

3. Geolocation

How do media managers use Geodemographic

Neighborhood characteristics by ZIP code to to profile individuals and households

How do media managers use Behaviorgraphic?

Information about audience behavior such as past purchases and online search

How do media managers use Geolocation?

information provided through various apps and platforms that allow marketers to see where consumers are going: 

Yelp, Foursquare, and Google Maps provide geolocation data

Name two popular vendors of social media platform analytics.

1. Google Analytics

2.  Hootsuite

3.  Keyhole

What are the four areas addressed by a marketing strategy for an entertainment media company? 

Segmentation

Positioning

Branding

Promotion

Define segmentation

The process of targeting market segments. Goal is to identify segments of the market not currently served and develop and distribute content to meet their needs.

To be considered effective, a segment must be three things. What are they

measurable

large enough to be profitable

reachable

Define positioning

Actions taken to present the product to consumers in a clear manner.

Name at least two factors that need to be analyzed to define a positioning.

1. Market

2. Competitors and their marketing strategies

3.  Product offering and capabilities

Define branding

Tangible and intangible values working together to create an image of a product in the mind of the consumer

List at least four factors that can influence brand image.

1. The product

2. Packaging

3. Name

4. Price

5.  Advertising and Promotion

6. Method of Distribution

Separate from paid advertising, what are 4 ways that promotion can be accomplished in media?

1. Publicity (Premieres/Red carpet, talent interviews, events)

2. Digital promotion, (e.g. trailers on YouTube, Instagram talent postings, website creation, )

3. Promotional partnerships (e.g. content for on mention of availability)

4. On-air promotion (station, network, social media promos)

5. Community involvement (involvement with civic groups/non-profit organizations; public appearances by on-air talent)

6. PSA campaigns featuring on-air talent  

Define Reach

How many different people exposed to at least advertisement

Define Frequency

# of times, average person is exposed to advertisement

Define Gross Impressions?

1. Total number of people reached

   1. # of Households*# of spots=Gis/

   2. Gross Ratings points (GRPs)

   3. HH Ratings * # of spots = GRPs

 What are four (4) media planning metrics used in digital marketing?

1. Media rates

2. Data Targeting

3. Social Listening

4. Audience Segmentation

5. Creative Testing

6. Media Effectiveness

7. Campaign Health

8. Data Targeting

What is a Horizontal brand extension

Applying an existing brand name to a new product

What is an example of Horizontal brand extension?

Nickelodeon → SpongeBob-branded Mac & Cheese

What is a Vertical brand extension?

Introducing the product in the same category as the core brand, but differing it in some way

An example of Vertical Brand Extension?

National Geographic → Nat Geo Kids

Name and define the 4P's of marketing

1. Product: actual goods produced for customers. Includes packaging

2. Price: impacts the sale of a product and affects competitors who consider what price to charge in light of other prices available in the market

3. Place: the digital or physical location at which the product is actually sold and the steps taken to distribute the product

4. Promotion: a combination of activities –advertising and promotion – that promote both awareness among consumers and the actual selling of products

What is the bottom line?

The amount of net profit or loss that remains after one deducts expenses from revenues

What are the three major functional areas or activities of financial management?

1. Planning:  

   1. Developing BUDGETS based on revenue history and expense projections

2. Monitoring: 

   1. Prep and review of FINANCIAL STATEMENTS 

3. Control: 

   1. Authorizing purchases and establishing internal policies and procedures

What are the three main financial statements used by managers in the electronic media?

1. Profit and Loss (P&L) Statement

2.  Balance Sheet

3.  Statement of Cash Flows

List the three sections of a Balance Sheet

1. assets, 

2. Liabilities

3.  Owner’s equity.

What is the formula that balances the three sections? 

Assets = Liabilities + Owner’s Equity

What are current assets

Cash or can be converted to cash easily or consumed within 1 year

What are Long-terms assets

1. Items not easily converted to cash or that are not consumed within 1 year

What is an example of an intangible asset? 

1. programming contracts

2. copyrights

3. trademarks

What is amortization?

Deducting value of intangible asset over time

What is Depreciation

deducting value of fixed asset over time.

What are liabilities?

Represent debt to others or money the firm owes.

What is owner’s equity?

The financial interest held by the firm’s owners

What is the primary purpose of Profit & Loss Statement? 

Is to show a business’s financial performance over a specific period of time by summarizing:

• Revenue (income earned)

• Expenses (costs incurred)

• Profit or loss (what’s left after expenses are subtracted from revenue)

What is revenue?

Money that flows into an organization through the sale of various products and services.

What types of media-related businesses have a dual revenue stream?

1. Television Networks (Cable & Broadcast)

   1. Ad Revenue – Commercials sold to  advertisers. 

   2. Subscription Fees – Paid by cable/satellite providers (e.g., ESPN, AMC).

2. Streaming Services (Hybrid Models) 

   1. Ad-Supported Plans – Free or cheaper plans with ads (e.g., Hulu, Peacock).

   2. Subscription Fees – Monthly/annual payments from users.

3. Newspapers and Magazines (Print & Digital) 

   1. Advertising – Display ads, classifieds, sponsored content.

   2. Circulation Revenue – Subscription fees or single-issue sales.

 

Define the term expenses.

Expenses are the costs a business incurs as part of its operations to generate revenue.

What is meant by the term cost of revenue?

Cost of Revenue refers to the total direct costs a company incurs to produce and deliver its products or services to customers.

What are Fixed Costs

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold

What are Variable costs.

A cost that vary depending on a company's production volume; they rise as production increases and fall as production decreases

What is above-the-line expenses

Costs related to the creative talent involved in the project.

What is below-the-line expenses.

Costs related to the technical and logistical execution of the production.

What is the purpose of a Statement of Cash Flows? 

Managers use the Statement of Cash Flows to track the flow of money in a organization.

What is a Quarterly Report?

Provides short-term insights into a company's financial health and business performance.

What is an annual report?

Offers a comprehensive overview of the company’s performance over the entire fiscal year

Why do managers rely on budgeting?

This statement summarizes the sources and uses of the cash flows in an organization and presents the beginning and ending cash balances

What are a few of the most used time intervals for monitoring a budget in the media industry?

Weekly, Monthly, Quarterly, Annually

Growth of revenue formula

Current Period Net Revenue-Previous Period Net Revenue/Previous Period Net Revenue

Net profit margin formula

Net Income/Net Revenues