1. The viewership data that Nielsen develops is important in detennining how much advertisers pay to place their ads on TV. What are the advantages and disadvantages of the system? Are there alternative systems that might work better? Explaln. Businesses spend a lot of money each year on advertising, so it is not surprising that they want to know what effect it is having. For example, marketers are asking advertising agencies more probing questions about advertising campaigns and media buys: how are the media plans developed, who buys the current media mix, and how have they performed? Faced with gro.ving accountabUity to perform, ad agencies are imposing more accountabUity on media outlets. Local and nationallY may no longer rely solely on Nielsen ratings as evidence for ad effectiveness; more convincing proof of performance would show how much they contribute to advertiser's sales. Newspapers, magazines, radio, and other media will also be asked for more convincing evidence. New ways to test the effects of media on consumer attention, persuasion and consumer thinking, and responsiveness in buying behaviour are in the development stage. Reliable measurements will allow media planners In advertising agencies to compare bottom-line results from alternative media expendituresnewspapers, internet, radio, magazines, lV-and to pinpoint the best combination of media buys.

In general, advertisers want to know what television programs consumers are watching, or what websites they are visiting. If it can be demonstrated that some lV shows or websites are more popular than others, advertisers will pay more to have their ads appear in those places.