Audience Economics: Media Institutions and the Audience by Philip Napoli

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By Philip Napoli

Targeting the digital media -- tv, radio, and the web -- viewers Economics bridges a considerable hole within the literature through supplying an built-in framework for realizing many of the companies taken with producing and promoting audiences to advertisers. Philip M. Napoli offers unique examine in an effort to solution numerous key questions: • How are audiences synthetic, valued, and offered? • How do advertisers and media businesses are expecting the habit of audiences?• How has the method of measuring audiences advanced over time?• How and why do advertisers assign diverse values to segments of the media audience?• How does viewers economics form media content?Examining the connection among the 4 significant actors within the viewers market -- advertisers, media enterprises, shoppers, and viewers dimension organizations -- Napoli explains the ways that they have interaction with and jointly rely on one another. He additionally analyzes contemporary advancements, comparable to the creation of local community meters via Nielsen Media examine and the institution and evolution of viewers dimension structures for the net. A invaluable source for lecturers, scholars, policymakers, and media execs, viewers Economics retains velocity with the speedy alterations in media and audience-measurement applied sciences which will supply a radical realizing of the original dynamics of the viewers industry this day.

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Media products that deliver small audiences relative to their competition are less likely to be desirable to advertisers seeking to maximize consumer exposure to their messages. As this discussion suggests, the past performance of media products generally is seen as a primary indicator of future performance (see chapter 2). Thus the measured audience, which always is a historical representation of audience behavior (Webster, Phalen, and Lichty 2000), often provides the analytical foundation for the predicted audience.

1 depicts the audience product as three overlapping spheres. This representation reflects the disconnects that can exist between each component of the audience product. Thus as the figure suggests—and as I will demonstrate—the difficulty inherent in controlling and predicting audience behavior means that a perfect convergence of the predicted audience and the measured audience never exists. Similarly, limitations in the measurement of audience behavior mean that the measured audience provides an imperfect representation of the behavior of the actual audience.

TH E P R E D I CTE D AU D I E N C E Television programmers have for years conducted “pilot testing” for their new programs. In many instances the data derived from these tests are a central factor in determining whether a program makes it on the air (see Schlosser 2001). Pilot tests involve showing the first episode of a new program (the pilot) to audiences and then recording their reactions, typically through theater testing or in-home cable testing. Theater testing involves recruiting a reasonably representative sample audience to attend a theater screening of a program.

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