Media Measurement Techniques Quiz

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Questions and Answers

What does Netflix mean by 'Completion Rates'?

  • The percentage of viewers who watch 70% or more of a title. (correct)
  • The percentage of viewers who sign up and watch a title within the first week.
  • The average number of viewers per episode of a title.
  • The percentage of subscribers who finish a series across all episodes.

What is one of the primary advantages of using active and passive measurement techniques?

  • Offers flexibility in data collection (correct)
  • Eliminates the need for advanced analysis
  • Enhances data privacy compliance
  • Increases reliance on traditional media

What metric does Disney+ use to track the revenue performance of its subscribers?

  • Total hours watched per month
  • Engagement Time
  • Subscriber Retention Rate
  • ARPU (Average Revenue Per User) (correct)

What is a significant challenge related to new media measurement?

<p>Data complexity requiring advanced analysis (D)</p> Signup and view all the answers

Which of the following metrics is NOT used by HBO Max?

<p>Subscriber Growth (D)</p> Signup and view all the answers

Which of the following is a pro of using Internet surveys for measuring media consumption?

<p>Captures both digital and traditional TV consumption (A)</p> Signup and view all the answers

What is the primary benefit of Netflix expanding its measurement window to 91 days?

<p>It allows more time for titles to gain traction. (B)</p> Signup and view all the answers

What is a potential drawback of relying on consumer devices for data collection?

<p>Privacy issues related to personal data usage (C)</p> Signup and view all the answers

How does Nielsen measure TV viewership in the United States?

<p>It uses a panel of 42,000 households (B)</p> Signup and view all the answers

What does Disney+ do to manage scrutiny for its underperforming titles?

<p>It avoids external validation methods like Nielsen. (C)</p> Signup and view all the answers

What is one method used by BARB in the UK for measuring television viewership?

<p>A panel representing the broader population (A)</p> Signup and view all the answers

What method does Netflix use to calculate its 'Average Viewership'?

<p>Total hours watched divided by the runtime of the title. (C)</p> Signup and view all the answers

What demographic concern is raised by using internet-based methods for consumption measurement?

<p>Limited access for less tech-savvy individuals (C)</p> Signup and view all the answers

Which strategy is emphasized for global expansion of content in streaming services?

<p>Hybrid models and content diversity. (C)</p> Signup and view all the answers

What advantage does cross-media measurement provide for companies?

<p>Aids in understanding the interaction between TV and online behaviors (A)</p> Signup and view all the answers

Which metric is used by both Netflix and Disney+ to track subscriber retention?

<p>Retention and Churn (C)</p> Signup and view all the answers

What is the primary characteristic of OTT services?

<p>They provide video content via the internet, bypassing traditional distribution methods. (A)</p> Signup and view all the answers

Which of the following describes SVOD?

<p>A subscription-based model providing unlimited access to a library of content. (D)</p> Signup and view all the answers

How did the pandemic influence streaming services like Netflix and Disney+?

<p>Their growth was accelerated as people sought online content. (B)</p> Signup and view all the answers

What is a defining feature of VOD services?

<p>Content that can be paused, rewound, and watched at any time. (D)</p> Signup and view all the answers

What trend is observed among younger audiences regarding media consumption?

<p>They favor streaming and gaming over conventional media. (A)</p> Signup and view all the answers

What distinguishes TVOD from other video on demand services?

<p>Users pay for specific content on a per-view basis. (D)</p> Signup and view all the answers

Which of the following best describes the role of Connected TV (CTV) in the media landscape?

<p>They reflect a demand for on-demand, convenient, and personalized content. (A)</p> Signup and view all the answers

What is one of the challenges facing traditional TV broadcasters post-pandemic?

<p>Declining viewership as audiences increasingly prefer streaming options. (C)</p> Signup and view all the answers

What does Cost Per First Stream (CPFS) measure?

<p>The cost of production and marketing for a show divided by new Prime members (A)</p> Signup and view all the answers

Which of the following best describes 'Churn Reducers' in the context of demand clusters?

<p>High demand shows with high CPFS aimed at retaining existing subscribers (B)</p> Signup and view all the answers

What is a primary benefit of using data-driven insights for OTT platforms?

<p>Improving personalized recommendations and content delivery (D)</p> Signup and view all the answers

What distinguishes North Star Metrics from Input Metrics?

<p>Input Metrics reflect short-term goals and project milestones (B)</p> Signup and view all the answers

Which of these best defines 'Niche Attractors'?

<p>Low demand shows with low CPFS targeting specific demographics (A)</p> Signup and view all the answers

What is a key function of the meticulous ROI assessments used by platforms?

<p>To understand how shows attract and retain subscribers (C)</p> Signup and view all the answers

What is the goal of analyzing real-time data insights within OTT brands?

<p>To adapt quickly to market trends and competitor activities (D)</p> Signup and view all the answers

How do data-driven insights contribute to efficient resource allocation for OTT platforms?

<p>By providing insights for content production, marketing, and user acquisition (C)</p> Signup and view all the answers

What does a ROAS value greater than 1 indicate?

<p>The campaign is profitable (D)</p> Signup and view all the answers

Which metric is used to measure the visibility and potential reach of content?

<p>Impressions (D)</p> Signup and view all the answers

What does CPM represent in advertising metrics?

<p>Cost per 1000 Impressions (B)</p> Signup and view all the answers

Why is frequency an important metric in advertising?

<p>It helps prevent ad fatigue by controlling user exposure (B)</p> Signup and view all the answers

What distinguishes reach from organic reach in advertising?

<p>Reach accounts for all unique users exposed to content, while organic reach specifies those without paid distribution (D)</p> Signup and view all the answers

Which metric is crucial for understanding the cost-effectiveness of acquiring a customer?

<p>CPA (A)</p> Signup and view all the answers

How does a high CPC indicate the performance of an ad?

<p>The ad may not be resonating with the target audience (D)</p> Signup and view all the answers

What impact does a high frequency have on ad performance?

<p>Can lead to ad fatigue and reduced effectiveness (C)</p> Signup and view all the answers

What is the primary purpose of Input Metrics?

<p>To provide detailed metrics for operational performance. (C)</p> Signup and view all the answers

Which North Star Metric (NSM) is associated with user loyalty for Netflix?

<p>Customer Loyalty (NPS) (C)</p> Signup and view all the answers

How is Average Revenue Per User (ARPU) calculated?

<p>Total revenue divided by the total number of users. (D)</p> Signup and view all the answers

What do Input Metrics influence in relation to North Star Metrics?

<p>They act as drivers to achieve the North Star Metrics. (A)</p> Signup and view all the answers

Which of the following is NOT an example of an Input Metric?

<p>Customer Lifetime Value. (D)</p> Signup and view all the answers

What does the Customer Acquisition Cost (CAC) include?

<p>Total cost of acquiring a new customer including all marketing costs. (B)</p> Signup and view all the answers

In the following example, what is the conversion rate? If 500,000 visitors generate 125,000 free trials:

<p>25% (D)</p> Signup and view all the answers

Which metric helps to optimize investments in acquiring and retaining customers?

<p>Customer Lifetime Value (D)</p> Signup and view all the answers

Flashcards

Cross-Media Measurement

A method that combines active and passive techniques to measure media consumption across different platforms, including TV, internet, and mobile devices. It offers a comprehensive view of audience behavior across various media but faces challenges with data complexity and reliability.

Internet Surveys

These surveys collect data on digital and internet media consumption using questionnaires and tracking user behavior across smartphones, tablets, and computers. They offer a comprehensive view of both digital and traditional media usage, but raise privacy concerns due to data collection from personal devices.

Panel

A group of carefully selected people (typically households) that represent a larger population. In TV viewership, panels are used to provide insights into the habits and preferences of the audience, allowing companies to make informed decisions about advertising and programming.

Nielsen

A leading media measurement company in the US. Nielsen tracks TV viewership across the country using a panel of 42,000 households, capturing data on what people are watching, when, and across different devices, including TV, computers, and smartphones.

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BARB

A media measurement organization in the UK, similar to Nielsen in the US. BARB tracks TV viewership, providing insights into the content people watch, time of viewing, and whether they watch live or recorded programs.

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Hours Watched

Netflix measures how many hours a title is watched globally from Monday to Sunday, used for its weekly Top 10 lists.

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Average Viewership

Calculated by dividing total hours watched by runtime, it allows comparing Netflix content with traditional TV metrics like viewership.

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Retention and Churn

A metric that tracks how many subscribers stay with the service or leave, providing insight into subscriber loyalty.

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Average Revenue Per User (ARPU)

Tracks the revenue gained per subscriber across different regions, showing the profitability of subscribers.

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Engagement Time

Measured by how much time users spend consuming content on the platform, reflecting engagement level.

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Content Engagement

Measures the impact of specific shows and movies on driving subscriptions, showing their effectiveness in attracting new users.

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Hybrid Models

A type of content strategy that combines various approaches like original content, licensing, and acquisitions, aiming for a diverse and engaging library.

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Demand for Original, Diverse Content

The increasing demand for original, fresh, diverse content that caters to various audiences, reflecting changing preferences.

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Monthly Active Users (MAU)

The number of unique users who engaged with your OTT service in the past month.

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Customer Acquisition Cost (CAC)

The total cost of acquiring a new customer.

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Customer Lifetime Value (CLV)

The amount of money a customer is expected to spend during their lifetime.

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Conversion Rate (CR)

The percentage of visitors who complete a desired action, like starting a free trial.

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Retention Rate

Measures the percentage of customers who return to your platform within a specific time frame.

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North Star Metric (NSM)

Represents the overall goal for your OTT platform, like customer loyalty or platform growth.

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Input Metrics

Granular metrics that measure specific actions and drive towards the North Star Metric.

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What is OTT (Over-The-Top)?

A way to access video content using the internet, bypassing traditional methods like cable or satellite. Examples include Netflix, Hulu, Youtube, and Disney+.

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What is VOD (Video on Demand)?

Video content that viewers can watch whenever they choose, instead of being limited to scheduled broadcasts. Examples include content on Netflix, Amazon Prime Video, or cable-provided on-demand options.

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What is SVOD (Subscription Video on Demand)?

A subscription-based model where you pay a recurring fee for unlimited access to a library of content. Examples include Netflix, Disney+, and HBO Max.

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What is TVOD (Transactional Video on Demand)?

Consumers pay to access specific content on a per-view basis. Similar to renting a movie from a store, but online.

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What is Hybrid VOD?

A combination of models, using both subscription and transactional elements for content access. Offers more flexible options.

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What is AVOD (Advertising Video on Demand)?

A type of VOD that relies on ad revenue to provide free access to a library of content. Similar to watching free TV with commercials.

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What is FAST (Free Ad-Supported Television)?

Primarily focuses on ad-supported revenue, providing a wider variety of content compared to subscription services. These services offer a selection of content for free, while the option to pay for premium content may also be available.

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What is PVOD (Premium Video on Demand)?

A premium model used for new releases, typically available for rental at a higher price. This model offers a pay-per-view option for recently released movies.

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Subscriber Base

Total active subscribers globally and domestically; Includes traditional cable HBO and streaming subscribers.

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Cost Per First Stream (CPFS)

Cost of production and marketing for a show divided by the number of new Prime members who first streamed that show.

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Demand Clusters

Subscription Drivers: High demand, low CPFS (ideal for acquiring new subscribers). Churn Reducers: High demand, high CPFS (retain existing subscribers). Niche Attractors: Low demand, low CPFS (target specific demographics). Low ROI Shows: Low demand, high CPFS (poor performance).

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Purpose of North Star Metrics

Long-term focus for growth and unify teams around key business goals.

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Boost Customer Experience and Engagement

Personalized recommendations and content delivery improve user satisfaction and retention by meeting individual preferences.

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Stay Ahead of Competition

Real-time data insights enable platforms to respond faster to market trends and competitor strategies.

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Provide Actionable Data for Teams

Developers, sales, and marketing teams can make informed decisions based on user behavior, leading to optimized campaigns and product offerings.

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Impressions

The total number of times an ad or post is shown to users, including repeat views by the same user.

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CPM (Cost Per Mille)

Measures how much you're paying for every 1,000 impressions your ad generates.

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Frequency

The number of times an individual user sees the same ad or post.

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Reach

The total number of unique users who see your content, whether through organic or paid methods.

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Organic Reach

The number of unique users who see your content without any paid distribution.

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CPC (Cost Per Click)

The amount you pay for each click on your ad.

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CPA (Cost Per Acquisition)

The cost associated with acquiring a new customer or completing a conversion action (e.g., purchase, sign-up).

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ROAS (Return On Ad Spend)

This metric tells you how much revenue you’re generating for every $1 spent on ads. A ROAS > 1 means the campaign is profitable, while a ROAS < 1 indicates a loss.

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Study Notes

Module 2: Introduction to Linear TV Business Models

  • TV has been a witness and creator of shared experiences
  • Linear TV: Traditional broadcast, real-time programming (e.g., over the air, cable/satellite), not streamed to specific users.
  • Non-Linear TV: Allows viewers to choose shows to watch through video on demand (VOD) services
  • OTT (Over-the-Top): Services bypass traditional distribution methods, primarily over the internet (e.g., Netflix, Hulu)
  • MVPD (Multi-Channel Video Programming Distribution): Subscription-based video service providers (e.g., cable, satellite)

Audience Measurement Systems of Linear TV

  • Measuring TV audiences is crucial for the market
  • Measurement methods should be accurate, reliable, and independent
  • Diary Method: An early method for recording viewing habits via face-to-face interviews and phone calls
    • Simple and easy to implement in small sample sizes
    • Provides personal insights into viewer habits
  • Electronic Methods (e.g., People Meters, Audimeters): Devices tracking viewing across multiple channels
    • Provides real-time data and accurate tracking of viewing habits
    • Measures multiple viewing variables (channel, time, specific viewers in a household)

Software Methods (e.g., GTAM - Global Television Audience Metering)

  • Addresses the challenge of fragmented media consumption (TV, internet, and mobile)
  • Combines active and passive measurement techniques
  • Tracks cross-platform consumption
  • Adapts to new media trends
  • Combines active and passive techniques

Module 2: Measurement Systems Used in the US, Spain, UK

  • US (Nielsen): Measures US TV viewership
    • Uses a large group of households (42,000)
    • Tracks what people are watching on TV and other devices
  • UK (BARB): Measures UK TV viewership
    • Uses a panel of households (5,300)
  • Spain (Kantar): Measures Spanish TV viewership
    • Uses 5,720 households
  • Detailed methods specific to each country in regards to what, how, and who these measurements are conducted on.

Module 3: Video On-Demand Revenue Models

  • Video on Demand (VoD): Individual delivery of TV programs/films via digital cable, satellite, or terrestrial television network.
  • Different types of VoD:
    • TVOD (Transactional): Paid-per-view
    • SVOD (Subscription): Recurring subscription
    • AVOD (Advertising): Advertisement-based
    • PVOD (Premium): Early access fees
    • Hybrid VOD: Combination of models

Module 3: New Media (e.g., Internet Surveys, Cross-Media Measurements)

  • Measures digital and Internet media consumption via phone and Internet surveys

Module 4: Social Media/OTT Metrics

  • Results: The number of times a campaign achieves its intended outcome or goal. Examples include website purchases, leads, form leads, custom conversions
  • Cost per Result: Total ad spend divided by the number of results.
  • Result Rate (Conversion Rate): Percentage of desired results compared to total impressions
  • Spend: Total amount spent over a given period
  • ROAS (Return on Ad Spend): Revenue generated for every $1 spent on ads
  • Impressions: Number of times an ad is shown
  • CPC (Cost per Click): Amount paid for each click on an ad
  • CPM (Cost per 1000 Impressions): Amount paid for every 1000 impressions
  • Frequency: Number of times a user sees an ad or post
  • Reach: Total number of users who see content
  • Organic Reach: Content views without paid distribution
  • CPA (Cost per Acquisition): Cost associated with acquiring a new customer
  • LTV (Lifetime Value): Total revenue generated by a customer
  • Additional Metrics: Monthly active users (MAU), Customer acquisition cost (CAC), Average Revenue Per User (ARPU), Customer Lifetime Value (CLV), Conversion Rate (CR), Abandon Rate, Churn Rate, Engagement Metrics (e.g., app logins, videos watched per session, specific in-app actions)

Module 4: Why OTT Content Publishers Aren't Leveraging Viewership Data

  • Lack of transparency
  • Limited industry standards
  • Client discretion, strategic reasons
  • No ad-driven pressure
  • OTT platforms prioritize control

Module 3/4: Future of TV and Advertising

  • Emerging talent gains visibility via platforms like YouTube (e.g., Issa Rae).
  • Content diversity dominates strategies
  • Emerging trends like demand for original, diverse content

General Notes

  • Multiple methodologies exist (diary, electronic, software)
  • Metrics and their definitions vary widely

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