March 8, 2017

Audience Economics: Media Institutions and the Audience by Philip Napoli

By Philip Napoli

Concentrating on the digital media -- tv, radio, and the web -- viewers Economics bridges a considerable hole within the literature via supplying an built-in framework for realizing some of the companies focused on producing and promoting audiences to advertisers. Philip M. Napoli offers unique study in an effort to solution numerous key questions: • How are audiences synthetic, valued, and bought? • How do advertisers and media organisations expect the habit of audiences?• How has the method of measuring audiences advanced over time?• How and why do advertisers assign various values to segments of the media audience?• How does viewers economics form media content?Examining the connection among the 4 important actors within the viewers market -- advertisers, media agencies, shoppers, and viewers dimension corporations -- Napoli explains the ways that they have interaction with and at the same time depend upon one another. He additionally analyzes contemporary advancements, equivalent to the advent of area people meters by way of Nielsen Media learn and the institution and evolution of viewers dimension platforms for the net. A necessary source for lecturers, scholars, policymakers, and media pros, viewers Economics retains velocity with the quick alterations in media and audience-measurement applied sciences on the way to supply a radical knowing of the original dynamics of the viewers industry this present day.

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1 Revenue Breakdowns for Advertiser-Supported Media MEDIUM REVENUE SOURCE AUDIENCE SALES Broadcast television Cable television systems Cable television networks Broadcast radio Newspapers Consumer magazines Trade magazines Internet sites 100% 15 60 100 70 50 90 Varies CONTENT SALES 0% 85 40 0 30 50 10 Varies Sources: National Cable 2002; Compaine and Gomery 2000; Veronis, Suhler, and Associates 2001. Within each component of the media industry, many individual media outlets fall under the broad umbrella ownership of a few large, diversified media corporations (Bagdikian 1997; Compaine and Gomery 2000).

Procter & Gamble Co. 4. Ford Motor Co. 5. Pfizer 6. PepsiCo 7. DaimlerChrysler 8. AOL Time Warner 9. Walt Disney Co. 10. Verizon Communications Source: Endicott (2001:52). 90 21 22 TH E AU D I E N C E MAR K E TP LAC E Finally and perhaps most important are the consumers of advertised products and services, whose attention represents the foundation upon which the entire audience marketplace is based. I use the term consumers here as a reminder that the advertisers who drive the audience market are fundamentally concerned with reaching potential purchasers of the products and services that they have to offer.

In this case a drastic change in how national television audiences were measured produced a significantly different picture of the television audience, one in which many more TH E AU D I E N C E MAR K E TP L AC E viewers were watching cable television, as opposed to broadcast television. Needless to say, the cable industry’s ability to compete for advertising dollars improved tremendously as a result of this measurement change, while the broadcast industry suffered. , measurement processes) of audience measurement firms can affect the competitive dynamics among the media organizations participating in the audience marketplace.

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