Download e-book for iPad: Audience Economics: Media Institutions and the Audience by Philip Napoli

By Philip Napoli

ISBN-10: 0231126522

ISBN-13: 9780231126526

ISBN-10: 0231126530

ISBN-13: 9780231126533

ISBN-10: 0231501188

ISBN-13: 9780231501187

Concentrating on the digital media -- tv, radio, and the net -- viewers Economics bridges a considerable hole within the literature by way of supplying an built-in framework for knowing a number of the companies interested in producing and promoting audiences to advertisers. Philip M. Napoli provides unique examine so as to resolution numerous key questions: • How are audiences synthetic, valued, and offered? • How do advertisers and media companies are expecting 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 critical actors within the viewers industry -- advertisers, media businesses, shoppers, and viewers dimension companies -- Napoli explains the ways that they have interaction with and together depend upon one another. He additionally analyzes contemporary advancements, corresponding to the creation of area people meters by means of 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 fast adjustments in media and audience-measurement applied sciences on the way to supply an intensive figuring out of the original dynamics of the viewers industry at the present time.

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Example text

For instance, in the “spot” television market (time purchased on short notice), stations typically do not guarantee make-goods to their advertisers (Phalen 1996). The Internet represents a slightly different situation because two distinct models of audience exchange have emerged. The first is based on the traditional cost-per-thousand (CPM) approach: Advertisers purchase space on a Web site in accordance with an estimate of the number of audience members who are going to view the advertisement. As with television and radio, such an approach involves making a deal based upon a forecast of the likely audience size for a Web site.

In the case of new media products, forecasters can only draw upon the track record of the organization or individual producing the media product (Gandy 1984; Gardini 2001) or that of the product’s genre or format (Gitlin 1983; Pekurny 1982). Of course, past performance is no guarantee of future performance, as content quality, audience tastes, and competing media options, to name only a few factors, can change rapidly. Consequently, forecasters also use their own assessments of the product’s audience appeal, scheduling or distribution factors, and the relative strength of the competing media products (Wakshlag, personal communication, 1998).

PREDICTING AUDIENCES: COPING WITH UNCERTAINTY Uncertainty is a key factor in any economic transaction. Traditionally, economists have assumed that all participants in a transaction are rational actors with all the information necessary to make the correct decision. , Simon 1976; Williamson 1985). Uncertainty is particularly prominent in the audience marketplace (Gitlin 1983; Pekurny 1982; Phalen 1996, 1998). Analysts of media industries long have recognized that media organizations face tremendous uncertainties regarding the behavior of their audiences and that these uncertainties affect the behavioral practices and institutional structures of media organizations (McQuail 1969).

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Audience Economics: Media Institutions and the Audience Marketplace by Philip Napoli

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