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Media market Wiki2Web Clarity Challenge

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Study Guide: Media Markets and Audience Measurement Fundamentals

Cheat Sheet:
Media Markets and Audience Measurement Fundamentals Study Guide

Fundamentals of Media Markets

A media market is defined solely by the geographical area where a population can receive the exact same television station signals.

Answer: False

Explanation: The definition of a media market is not limited solely to the reception of identical television signals. It encompasses the geographical region where a population has access to the same or similar television and radio station offerings, and potentially other media forms.

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Media markets are exclusively confined to large metropolitan areas.

Answer: False

Explanation: Media markets are not exclusively confined to large metropolitan areas; they can align with or span multiple metropolitan regions, and conversely, rural areas can also constitute designated markets.

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Media markets are typically identified by the smallest city within their geographical boundaries.

Answer: False

Explanation: Media markets are generally identified by their largest city, which is typically situated at the center of the region, rather than by the smallest city within their boundaries.

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A single media region can sometimes be identified by multiple city names due to population distribution.

Answer: True

Explanation: Due to geographical factors and the distribution of population centers, a single media region may indeed be identified by multiple city names, reflecting the presence of several significant population hubs.

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In the United Kingdom, media regions are defined by privately held companies, similar to the US.

Answer: False

Explanation: In the United Kingdom, media regions are defined by government-run television broadcasters, contrasting with the United States where privately held institutions typically define these regions.

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What is the fundamental definition of a media market?

Answer: A region where the population has access to the same or similar television and radio station offerings.

Explanation: A media market is fundamentally defined as a geographical region where the population has access to the same or similar television and radio station offerings, potentially including other media forms.

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Which of the following is NOT listed as another term for a media market?

Answer: Arbitron Radio Metro

Explanation: While 'Broadcast market,' 'Media region,' and 'Designated Market Area (DMA)' are identified as synonyms or related terms for a media market, 'Arbitron Radio Metro' refers to a specific designation for radio market ratings and is not presented as a general synonym for all media markets.

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How can media markets relate to geographical areas?

Answer: They can span multiple metropolitan areas or encompass rural regions.

Explanation: Media markets are not rigidly defined by administrative boundaries like county lines; they can encompass multiple metropolitan areas or extend into rural regions, reflecting actual media reception patterns.

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What is the primary use of media markets in the United States?

Answer: To facilitate audience measurements for advertising revenue.

Explanation: In the United States, media markets are primarily utilized to facilitate audience measurements, which in turn are essential for determining advertising revenue and media planning.

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How are media markets typically identified?

Answer: By the largest city situated at the center of the region.

Explanation: Media markets are typically identified by the principal or largest city located within the geographical center of the region they represent.

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What factor can lead to a single media region being identified by multiple city names?

Answer: The geographical distribution of population centers and major cities.

Explanation: A single media region may be identified by multiple city names when there is a significant geographical distribution of population centers and major cities within that region.

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How do media region definitions differ between the United States and the United Kingdom?

Answer: The US uses private institutions, while the UK uses government-run broadcasters.

Explanation: Media region definitions differ significantly: in the US, they are typically defined by private institutions, whereas in the UK, government-run television broadcasters are responsible for defining these regions.

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Television Market Designations (DMA & TMA)

The term 'Designated Market Area' (DMA) is a synonym for a media market, commonly used in the United States.

Answer: True

Explanation: The Designated Market Area (DMA) is indeed a term commonly employed in the United States, functioning as a synonym for a media market, particularly as utilized by Nielsen Media Research for television audience measurement.

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A Television Market Area (TMA) is a designation created by Nielsen Media Research.

Answer: False

Explanation: A Television Market Area (TMA) is a designation used by the U.S. Federal Communications Commission (FCC), not Nielsen Media Research, which uses the term Designated Market Area (DMA).

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The FCC uses TMAs to manage broadcast, cable, and satellite transmissions.

Answer: True

Explanation: The Federal Communications Commission (FCC) utilizes Television Market Areas (TMAs) as regulatory boundaries to manage broadcast, cable, and satellite transmissions, including rules regarding channel carriage.

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The TMA system ensures that virtually all geographic areas in the United States belong to exactly one TMA.

Answer: True

Explanation: The Television Market Area (TMA) system is designed to cover the entire United States, ensuring that virtually all geographic areas are assigned to precisely one TMA.

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The Designated Market Area (DMA) is a term controlled by the Federal Communications Commission (FCC).

Answer: False

Explanation: The Designated Market Area (DMA) is a term trademarked and controlled by Nielsen Media Research, whereas the Federal Communications Commission (FCC) uses the term Television Market Area (TMA).

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What is a Television Market Area (TMA) as defined by the FCC?

Answer: A regulatory boundary grouping counties served by specific TV stations.

Explanation: A Television Market Area (TMA), as defined by the FCC, is a regulatory boundary that groups together counties served by a specific set of television stations.

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What is a primary regulatory function of TMAs for the FCC?

Answer: Determining which channels satellite or cable subscribers receive.

Explanation: A primary regulatory function of TMAs for the FCC is to determine which channels satellite and cable subscribers receive, enforcing rules such as 'must-carry'.

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How does the TMA system cover the United States geographically?

Answer: Virtually all geographic areas belong to exactly one TMA.

Explanation: The TMA system is designed for comprehensive geographical coverage, ensuring that virtually all areas within the United States are assigned to one, and only one, TMA.

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Who holds the trademark for the Designated Market Area (DMA) designation?

Answer: Nielsen Media Research

Explanation: Nielsen Media Research holds the trademark for the Designated Market Area (DMA) designation, which it uses for television audience measurement.

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How many Nielsen DMAs exist in the United States?

Answer: 210

Explanation: There are 210 Designated Market Areas (DMAs) defined by Nielsen Media Research within the United States.

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Radio Market Designations (Arbitron Radio Metro)

In the United States, radio markets are generally larger than television markets.

Answer: False

Explanation: In the United States, radio markets are typically smaller than television markets, partly due to stricter broadcast power limitations for radio and the wider reach of television signals, especially via cable.

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Radio ratings are sometimes separated based on the broadcast band, distinguishing between AM and FM frequencies.

Answer: True

Explanation: Radio ratings can be differentiated based on the broadcast band, specifically distinguishing between Amplitude Modulation (AM) and Frequency Modulation (FM) frequencies.

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An Arbitron Radio Metro is a definition used for television station ratings.

Answer: False

Explanation: An Arbitron Radio Metro is a specific area defined for radio station ratings, not for television station ratings.

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Arbitron Radio Metros are typically larger than Television Market Areas (TMAs).

Answer: False

Explanation: Arbitron Radio Metros are generally smaller than Television Market Areas (TMAs); a single TMA can encompass multiple Radio Metros.

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There are 302 Radio Metros designated in the United States, but they do not cover the entire country.

Answer: True

Explanation: The United States has 302 designated Radio Metros, however, these designations do not extend to cover all geographical areas within the country.

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How do radio markets in the United States generally compare in size to television markets?

Answer: Radio markets are typically smaller than television markets.

Explanation: In the United States, radio markets, such as Arbitron Radio Metros, are generally smaller in geographical scope compared to television markets (like TMAs or DMAs).

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Why are US radio markets often smaller than TV markets?

Answer: Television signals have a wider reach, especially via cable.

Explanation: US radio markets are often smaller than TV markets because television signals possess a wider inherent reach, further amplified by distribution methods like cable television, compared to the more localized range of typical radio broadcasts.

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What is an Arbitron Radio Metro?

Answer: A specific area defined for radio station ratings.

Explanation: An Arbitron Radio Metro is a defined geographical area specifically established for the purpose of conducting and reporting radio station ratings.

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How do Arbitron Radio Metros typically compare in size to TMAs?

Answer: Radio Metros are generally smaller than TMAs.

Explanation: Arbitron Radio Metros are typically smaller in geographical scope than Television Market Areas (TMAs), with a single TMA often encompassing multiple Radio Metros.

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Audience Measurement and Segmentation

Nielsen Media Research compiles audience measurements for media markets in the United States.

Answer: True

Explanation: Nielsen Media Research is an organization responsible for compiling audience measurements for media markets within the United States, a practice crucial for determining advertising revenue.

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Nielsen acquired Arbitron's television audience measurement services in September 2013.

Answer: False

Explanation: Nielsen acquired Arbitron's radio audience measurement services in September 2013, not its television services. Nielsen has been measuring both television and radio audiences since this acquisition.

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Television ratings are differentiated based on whether signals are received via terrestrial broadcast or satellite.

Answer: False

Explanation: Television ratings are differentiated based on signal reception methods such as terrestrial broadcast versus cable television, not typically terrestrial broadcast versus satellite.

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Market researchers subdivide audiences only by demographic factors like age and gender.

Answer: False

Explanation: Market researchers subdivide audiences not only by demographic factors (age, gender, ethnicity) but also by psychographic segmentation, which considers characteristics like income levels and viewing habits.

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Detailed audience segmentation helps advertisers identify the most effective ways to reach specific target groups.

Answer: True

Explanation: The strategic purpose of detailed audience segmentation, encompassing both demographic and psychographic factors, is to enable advertisers to determine the most effective methodologies for reaching their specific target audiences.

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All 210 Nielsen DMAs in the United States use the traditional diary system for viewership data collection.

Answer: False

Explanation: While the traditional diary system is used in smaller markets, not all 210 Nielsen DMAs rely solely on it; 70 of these markets utilize automated measurement systems ('metered' markets).

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Nielsen began competing with Arbitron in offering radio ratings in 2009, initially focusing on the largest markets.

Answer: False

Explanation: Nielsen began competing with Arbitron in radio ratings in 2009, but initially focused on markets ranked 101st and smaller, not the largest markets.

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Who is responsible for compiling audience measurements for media markets in the United States?

Answer: Nielsen Media Research

Explanation: Nielsen Media Research is the primary entity responsible for compiling audience measurements for media markets in the United States, having acquired Arbitron's services in 2013.

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How can television ratings be differentiated for measurement purposes?

Answer: By separating signals received via terrestrial broadcasting versus cable television.

Explanation: Television ratings can be differentiated by distinguishing between signals received through terrestrial broadcasting methods and those received via cable television services.

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Beyond demographics, what other method do market researchers use to subdivide audiences?

Answer: Psychographical segmentation, considering factors like income.

Explanation: In addition to demographic segmentation (age, gender, ethnicity), market researchers employ psychographical segmentation, which analyzes factors such as income levels and other non-demographic characteristics.

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What is the purpose of detailed audience segmentation for advertisers?

Answer: To determine the most effective ways to reach specific target audiences.

Explanation: The primary purpose of detailed audience segmentation for advertisers is to strategically identify and implement the most effective methods for reaching specific target audiences with their campaigns.

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When did Nielsen begin offering radio ratings to compete with Arbitron?

Answer: 2009

Explanation: Nielsen commenced offering radio ratings in direct competition with Arbitron in the year 2009.

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Historical Market Concepts

The 'area of dominant influence' (ADI) was a term used for radio ratings created by Arbitron.

Answer: False

Explanation: The 'area of dominant influence' (ADI) was a term used by Arbitron for television ratings, established in 1966, not for radio ratings.

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Arbitron ceased its television ratings service in the late 1990s.

Answer: False

Explanation: Arbitron ceased its television ratings service in late 1993, prior to the late 1990s.

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There were 209 ADIs defined in the continental US during the 1993-1994 television season.

Answer: True

Explanation: For the 1993-1994 television season, the United States was divided into 209 Areas of Dominant Influence (ADIs).

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What was the 'area of dominant influence' (ADI)?

Answer: An Arbitron term for television ratings, established in 1966.

Explanation: The 'area of dominant influence' (ADI) was a term utilized by Arbitron for television ratings, first established in 1966, before Arbitron ceased its television ratings service.

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How many ADIs were defined in the continental US for the 1993-1994 television season?

Answer: 209

Explanation: During the 1993-1994 television season, there were 209 Areas of Dominant Influence (ADIs) defined across the continental United States.

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Market Overlap and Signal Reach

It is possible for individuals on the edge of one media market to receive content from adjacent markets.

Answer: True

Explanation: Media market regions can indeed overlap, allowing individuals situated on the periphery of one market to potentially receive content originating from adjacent markets.

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TMAs might cover larger areas than their stations serve due to challenging geographical terrain hindering digital broadcasting.

Answer: True

Explanation: Television Market Areas (TMAs) can encompass larger geographical regions than the direct signal reach of their stations, particularly in areas with challenging terrain that impedes digital broadcasting reception.

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Olean, New York, is considered part of the Buffalo, New York market despite Buffalo's signals not reaching Olean directly.

Answer: True

Explanation: Geographical market designations can include areas like Olean, New York, within the Buffalo, New York market, even if direct signal reception from Buffalo is not feasible locally.

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A smaller market's stations, like Erie, Pennsylvania, never have signals that extend into neighboring TMAs.

Answer: False

Explanation: Stations from smaller markets, such as Erie, Pennsylvania, can indeed have signals that extend into neighboring Television Market Areas (TMAs), influencing audience reach beyond their primary designation.

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What can cause a TMA to cover a larger area than the stations within it might suggest?

Answer: Challenging terrain hindering digital broadcasting reception.

Explanation: Challenging geographical terrain, which can impede digital broadcasting reception, is a factor that may cause a Television Market Area (TMA) to cover a larger geographical region than the direct signal reach of its stations would imply.

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Regulatory and Operational Aspects

Television stations are generally permitted to be rebroadcast across any market area without restriction.

Answer: False

Explanation: Generally, television stations are permitted to be rebroadcast only within their designated market area, with specific exceptions such as stations listed as 'significantly viewed'.

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The 'significantly viewed' list allows certain out-of-market stations to be rebroadcast, acting as an exception to general rules.

Answer: True

Explanation: The 'significantly viewed' list functions as an exception to standard rebroadcasting regulations, permitting certain stations from outside a market to be carried.

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What is the general rule concerning the rebroadcasting of television signals across different market areas?

Answer: Only stations within the same market area are generally permitted to be rebroadcast.

Explanation: The general rule dictates that television signals are typically permitted to be rebroadcast only by stations located within the same market area, with specific exceptions noted.

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