Day 046 - 04 Nov 94 - Page 06


     
     1        A.  That is correct.  It is very reliable.  Obviously,
     2        since people spend literally millions and millions of
     3        dollars on it, based on the research information.
     4
     5   MR. MORRIS:  Is the rating figure based on both the percentage
     6        of the target audience and the numbers of the audience?
     7        A.  There would be somewhat----
     8
     9   Q.   Is there an element of both?
    10        A.  Yes.  It is one and the same.  If a particular audience
    11        has, let us say, a million people in it -- if you are
    12        talking about adults -- let us say there is a million
    13        people in the United States, then a seven rating would mean
    14        that seven per cent of that million people were watching.
    15        So one rating point is equal to one per cent of the
    16        population you are trying to rate.  So-----
    17
    18   MR. MORRIS:   Yes.  But a rating point of seven that was focused
    19        on the population of 30,000 would not be as lucrative to
    20        you as a rating point of seven that was focused on a
    21        population of million, would it?  You would have to know
    22        what the total audience -- the total target population.
    23
    24   MR. JUSTICE BELL:  I am not sure that is what Mr. Green has
    25        said.
    26
    27        (To the witness)  Let me just put it to you, merely because
    28        I need to know that I am understanding.  The rating points
    29        are related, really, to your target audience?
    30        A.  That is correct.
    31
    32   Q.   Because it does not mean that an audience of five million
    33        is more valuable than an audience of one million, if you
    34        could say that the other four million would never in a
    35        month of Sundays come near your product.  So you first of
    36        all have a target audience and you have numbers in that
    37        target audience?
    38        A.  That is correct.
    39
    40   Q.   And, by juggling those factors together, you come up with
    41        your rating points; is that the essence of it?
    42        A.  Yes.  The rating services give us -- in most cases we
    43        rate on a 18 to 49 basis.  So the universe in the United
    44        States is all people who are 18 to 49.  For children, it
    45        would be all children who are two to 11.  Then those points
    46        relate to that universe of all adults that are 18 to 49 or
    47        that universe of children that are two to 11.
    48
    49   Q.   It may be that the more you have watching, the more you
    50        will have who are actually susceptible to your 
    51        advertisements, but you seek to be rather more 
    52        sophisticated than that "scatter gun" approach? 
    53        A.  Right.  We are not just looking at anybody who is
    54        watching.  As we said, we are targeting the ads.  The adult
    55        target is 18 to 49 target, and the children target is the
    56        two to 11.
    57
    58   Q.   The fact of targeting is taken into account in reaching the
    59        points rating?
    60        A.  Right, because the ratings refer specifically to the

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