The value of advertising campaigns or television programs are often measured in ways that sometimes do not reflect actual value, but are only substitutions for measurements of value. Gross rating points (GRPs), for example, are more a reflection of advertising cost than value. A demographic rating indicates how many people watched a program, but it does not necessarily indicate the value of the program to an advertiser because the characteristics of those who watched the program may not closely match the audience that the advertiser is seeking.

These measurements have served the industry well, and have their place in providing insight into the performance of programs and advertising campaigns. But there are some kinds of decisions that benefit from measurements that are designed to give a more accurate measure of value.

The term valuation refers to the process of estimating the actual value of audiences and advertising as defined by those who are planning television programming, or who are paying for advertising on those programs.

There are a variety measures that can be used to estimate actual value:

• Audience members
• Exposure to advertisements
• Individual ads in a media plan
• A media plan
• Ads in a media plan that air on a particular network
• A program for advertising a particular product