When something is aired, production companies need to know the size of the audience at certain intervals. This data is audience data. This can tell if a specific show is successful so that people putting money into it know they are getting their monies worth. A TV network will not put a program on if a more successful program can make better use out of the time slot. Another example is advertisement companies, they need to know how many people will be watching the advert and if it's worth spending the money for having the advertisement on at that time.
Audience data can be involved in many forms of media newspapers, magazines, books and other forms of payed media can be calculated through amount of sales, where as websites, free online videos and music can be calculated through amount of traffic.
Demographics are ways of interpreting the audience data so that it's quick and easy to understand. In the
media business time is very important and shouldn't be wasted. This can also be useful for showing members of the public the information as most of them may not understand a lot of the technical talk, they just want a simple way to read the information.
Most audience data is calculated digitally, as it's a large amount of data and would take too long for people to process and sometimes the figures are required to be looked at near live. To have a computer to process all the information is much more reliable.
Sources:
http://uk.ask.com/what-is/what_is_audience_data
http://en.wikipedia.org/wiki/Audience_measurement
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