A power ratio is a method used by media companies to measure revenue performance compared to the audience share it controls. In order to use the power ratio, a company must know three numbers: the total market revenue, the company's revenue, and the audience share. The goal for media companies is to receive a high score in this ratio.
A power ratio often is used to compare the performance of different media forms against similar competitors. A high power ratio means that more revenue is received per thousand visitors or participants within a given medium. Power ratios are used both by media firms to evaluate performance and occasionally by large media corporations who seek to buy out smaller media outlets.
This question was answered by Richard C. Wilson.

How do stock dividends affect the retained earnings account?
Understand the difference between financial ratio analysis and accounting ratio analysis. Learn why ratio analysis is important ... Read Answer >> 
How do I use ratios to perform a financial analysis?
Learn which ratios are used in fundamental analysis. Find out how analysts measure company performance and financial health ... Read Answer >> 
How does ratio analysis make it easier to compare different companies?
Learn what ratio analysis is, how investors can compare companies within the same sector using ratio analysis and how ratios ... Read Answer >> 
What is the difference between efficiency ratios and profitability ratios?
Learn about efficiency and profitability ratios, what these ratios measure and the main difference between efficiency and ... Read Answer >> 
What role does ratio analysis play in valuing a company?
Learn about the role of ratio analysis in determining company value, including some of the most common ratios used by modern ... Read Answer >> 
Which financial metrics are best for analyzing companies in the chemicals sector?
Learn about some of the key financial metrics that investors and market analysts commonly use to evaluate companies in the ... Read Answer >>

Investing Basics
Analyze Investments Quickly With Ratios
Make informed decisions about your investments with these easy equations. 
Investing
Ratio Analysis
Ratio analysis is the use of quantitative analysis of financial information in a company’s financial statements. The analysis is done by comparing line items in a company’s financial ... 
Entrepreneurship
Implementing A Small Business Social Media Strategy: Define Your Target Audience
Going hand in hand with establishing your social media goals is defining your target audience. 
Professionals
The Income Statement: Key Ratios
FINRA/NASAA Series 65  The Income Statement: Key Ratios. In this section interest coverage ratio, priceearnings ratio and price to book ratio. 
Investing
Why Is Old Media Interested in New Media?
With their eyepopping valuations and investments, new media startups are hot. But why are legacy media organizations interested in them? 
Trading Strategies
Financial Ratios to Spot Companies Headed for Bankruptcy
Obtain information about specific financial ratios investors should monitor to get early warnings about companies potentially headed for bankruptcy. 
Investing Basics
Social Media: High Risk, High Potential Returns
Carefully selecting social media ETFs can provide you with the opportunity to diversify your portfolio and enjoy financial rewards due to user growth. 
Professionals
Uses and Limitations of Financial Ratios
CFA Level 1  Uses and Limitations of Financial Ratios. Discusses the limitations of financial ratio analysis. Learn how benchmarking financial ratios can increase the benefit from analysis. 
Fundamental Analysis
4 Simple Investing Ratios You Need To Know
Dissecting a company’s financial statements to uncover ways to make money is a challenging endeavor. Here are four ratios that can help. 
Fundamental Analysis
Efficiency Ratio
There are many types of efficiency ratios, but all measure how well a company utilizes its resources to make a profit. Business managers use these ratios to determine how well they are operating ...

Power Ratio
A measure of a media company's revenue performance (i.e., advertising ... 
Current Ratio
The current ratio is a liquidity ratio measuring a company's ... 
Ratio Analysis
A ratio analysis is a quantitative analysis of information contained ... 
Activity Ratios
Accounting ratios that measure a firm's ability to convert different ... 
Accounting Ratio
A way of expressing the relationship between one accounting result ... 
Key Ratio
A mathematical ratio that illustrates and summarizes the current ...