SQARE© Methodology for SQAD Spot TV

Updated January 2002

This document provides an overview of SQAD's proprietary spot television methodology and the SQAD Advertising Rate Evaluator (SQARE). The SQARE model was developed for the purposes of analyzing and integrating the various types and sources of spot TV cost information received monthly, and for producing CPP estimates based on this information. Subscribers can obtain the complete methodological document by request.

I. SQARE Objectives
The ultimate objectives of the model are to produce realistic "street price" CPP estimates for:

A. 5 quarters: the current quarter and the next 4 projected quarters
B. 3 levels: Average, Low and High
C. All markets measured by the Nielsen Station Index (NSI) (DMAs)
D. 58 demographics (see Table I)
E. 8 dayparts (see Table II)
F. NSI-based buys

These estimates must be updated monthly based on the latest cost information available.

II. Sources of Cost Information
The SQARE model uses real media cost data supplied to SQAD by contributing advertising agencies and media services on a monthly basis, along with historical SQAD data.

III. Methodology Overview
Taking the real media cost data, SQARE performs its calculations for three levels (average, low and high) of cost-per-point (CPP - target demographics listed in Table I) estimates by market, by daypart for five quarters. The monthly data is edited, then analyzed for every SQAD market, target, and daypart. Once all of the input is combined, a CPP estimate is derived by dividing the total dollars by the total GRPs for the market/daypart in question.

The data then is quality-checked by all dayparts, creating a matrix of contributor data for every market and every daypart for the current quarter, and is then checked with a separate matrix which uses previous SQAD data.

The 2 matrices are then weight-averaged together to produce the final TV Household CPP for the current quarter, this proprietary weight-average methodology provides cost estimates that move in the appropriate direction, and that our subscribers can use with confidence.

Table I - SQAD Demographics

Table II - SQAD Dayparts