How is a People Meter primarily used?

A People Meter is primarily used to measure television audiences. This device allows broadcasters and advertisers to gather data about who is watching specific programs, when they are watching, and for how long. By collecting demographic information and viewing habits, the People Meter provides insights that are crucial for understanding audience engagement and preferences.

Advertisers rely on this data to make informed decisions about where to place their ads, ensuring they reach their target audiences effectively. The collected audience metrics can influence programming decisions and advertising costs, as networks and advertising agencies utilize these insights to gauge the popularity and success of various shows.

The other options relate to different aspects of the television industry but do not accurately describe the primary function of a People Meter. For example, while it is essential in the advertising process, the creation of advertisements or the distribution and funding of television programs are not the roles of the People Meter. Instead, its main importance lies in audience measurement, which is fundamental for effective advertising strategies.