From Your Lips to Philly's Ears

This morning's RBR addresses the concerns about the Cost per Point issue related to the "recalibration" of the numbers in Philadelphia:

Radio Business Reports:  Kathy Crawford: Nothing to fear on PPM in Philly

Well, the first PPM numbers are coming out today for the City of Brotherly Love and there's a bit of apprehension from the radio stations. We will be asking for opinion on those numbers, but for now we asked Kathy Crawford, MindShare President/Local Broadcast, about fears that there will be lower AQH numbers and therefore less dollars for radio in the market.

Will buyers increase the CPP value to compensate? How will it pan out in negotiations?

"The same way that it happened with the LPM [Local People Meter-for TV]. The bottom line was the pricing

A Note to PPM Sellers:

I have a suggestion for terminology for selling with PPM:  If the topic of marketplace recalibration (see below) is addressed, may I suggest using a differentiating term for "CPP" or Cost per Point on all proposals?

I would suggest CPDP for "Cost per Diary Point" and CPMP for "Cost per Meter Point." 

We're now comparing measures on a different scale.  If 77F is differentiated from 25C even though they both represent the same temperature, so too should CPDP and CPMP be understood to represent a different measure of an audience that has not in actuality changed in size.

km/hr vs. MPH vs. furlongs per fortnight all get you there at the same rate    (pun intended)

MSO

Selling with PPM: Arbitron's "Adjusted PPM Cost Conversion Utility"

Understanding the math - looking at the possible ramifications

Arbitron has published their "Adjusted PPM Cost Conversion Utility" at www.ppmconverter.com.  I've not seen a lot written about it other than in Arbitron presentations.  On the eve of the release of "currency" data in Philadelphia, it is the best insight that we have into where things stand from a publicly available source of data.

Based on the best information that I can discern about the sales climate in Philadelphia right now, it appears that the marketplace Cost Per Point is around $225.  Market demand is moderate.

If you click on this graphic, you'll see a larger table - it might possibly even be readable.  (I suggest a right-click and "open in new window" so that it can be open alongside of this post.)

From the bottom of the chart, you'll see that the CPP Conversion Factor is 1.23.  That means that, using this list of stations, if the diary AQH rating was a 1.0, then the PPM AQH rating will be a 0.8 or 20% lower.

Timely Information on the Eve of PPM's Currency Release

For some reason or another, it just seemed that this Wall Street Journal headline was just begging to be posted on the eve of releasing currency PPM data in Philadelphia:

Read This and Weep:  Crying At Work Gains Acceptance

Crying at work has long been seen as verboten. But there's evidence that a growing number of workers, especially those in their 20s and 30s, see it differently. Some think it's old-fashioned to hide your emotions. Others are quick to cry over negative feedback. And many find themselves at odds with managers who grew up with a more repressive definition of professional conduct.  [ MORE ]  MSO

Media Life: From TiVo, Bettter Data on Ad Skipping

New system reveals how many viewers fast-forward

At some point, media buyers and sellers will reach agreement on how best to include viewing of prerecorded TV shows in with live viewing in negotiating advertising deals.

...

TiVo may have the answer. The DVR maker is offering buyers data on viewing on some of its digital video recorders that would reveal just how much ad-skipping does take place. But the information is new, and it could take buyers many months to analyze. That means it probably won't become a tool for negotiations until next year's upfront.

...

... media buyers say this information still isn’t enough because it doesn’t track how many viewers are fast-forwarding through commercials on DVR-recorded programs.

Nielsen will begin issuing commercial ratings next month that will partially remedy this. Buyers note these will be based on average commercial-minute ratings within a program, however, not specific commercials.

TiVo’s Stop||Watch gets closer to actual commercial ratings.

This information will help buyers estimate the number of viewers fast-forwarding through commercials, but it will not replace Nielsen ratings as the currency used in negotiations. TiVo’s sample is too small for that and doesn’t necessarily reflect how people using other DVRs record and playback programs.

[ MORE ]

IndyStar: Making Waves in Radio

Pocket-sized gadget's impact on listener ratings and ad revenue could be seismic shift in the medium's paradigm

The Portable People Meter, another pocket- sized gadget, is about to change the broadcast radio industry forever.

Arbitron, the company that tallies listeners so broadcasters can set advertising rates, is moving away from paper diaries. Instead, Arbitron is paying listeners in a growing number of markets to carry Portable People Meters.

These high-tech gadgets, also known as PPMs, look like pagers and record what radio stations are playing in the background.

PPMs collect extremely accurate data. They're not like diaries, which usually contain a listener's best guess of what radio stations he heard, hour by hour, week after week.

Yet accuracy means stations that once were at the top of the heap in terms of popularity and advertising sales soon may find themselves near the bottom.

...

That means Emmis, Clear Channel and other broadcasters will have to start selling their stations in a whole new way:  They'll have to retrain advertisers to look at the "cume" rating, not the average-quarter-hour rating. They'll have to prove that radio still has listeners, even if the average-quarter-hour ratings aren't as high as they once were.

Will advertisers go for this, or will they look for cheaper rates?

No one really knows, but everyone has an opinion.

Dave Van Dyke, president and CEO of the radio market research firm Bridge Ratings, said he has talked to advertisers who say they plan to increase their budgets for radio once they have more accurate data from PPMs.

But he's skeptical.

"I think, because it's a significant change, the ad agencies will have an advantage. It's resetting the game," Van Dyke said.

Bonnie Surber, media director for the Indianapolis ad agency Roman Brand Group, doubts PPMs will make more companies want to advertise on radio. But those that already do will be able to make better buying decisions.

Overall, Surber said the shift in thinking won't be too difficult for advertisers. Many already see radio as a reach medium, despite how it's sold using Arbitron ratings.  [ MORE ]

Surfing in Iceland

We found it fascinating and curious that PPM News was getting so many hits from Iceland and Norway.  Now it all begins to make sense...  (See posts below.)

Here's a partial page from the PPM News sitemeter:

Baltimore Business Journal: Icelandic firm to measure TV, radio audiences with Arbitron meter

Arbitron Inc. has signed up an Icelandic company that will use its Portable People Meter to measure television and radio audiences for its clients.

The six-year contract was awarded to Reykjavik-based research and consulting firm Capacent, which will use the Portable People Meter to better measure television and radio audiences for the nation's broadcasters.

TNS Norway, a market research and information services company, will support the setup and ongoing audience measurement on behalf of Capacent.   [ MORE ]

Iceland Selects Arbitron Portable People Meter to Measure Both Radio and Television Audience

NEW YORK-April 16, 2007 - Arbitron Inc. (NYSE: ARB) announced today that leading broadcasters in Iceland have selected the Arbitron Portable People Meter(TM) system as the audience measurement currency system for both radio and television. This makes Iceland the first country to take full advantage of the PPM system's multimedia measurement capabilities.

The six-year contract was awarded to the Reykjavik-based research and consulting firm Capacent, supported by TNS Norway. TNS already provides currency measurement for the radio industry in Norway using the PPM and has licensed the use of the PPM system to Capacent. TNS will support the set-up and ongoing running of the audience measurement panel by Capacent.

The contract with Iceland's major TV and radio broadcasters was awarded through a competitive RFP for electronic audience measurement. The PPM technology, which was evaluated in field trial in Iceland, was selected over a "wristwatch meter" system proposed by Swiss-based Telecontrol, a GfK subsidiary.

...

Also in 2006, RAJAR, the radio research consortium in the UK, in concert with BARB, the TV research consortium, awarded TNS with a contract for a PPM research and development panel in London. The RAJAR award was the result of a four-year competitive evaluation process that included assessments of the Media Audit/IPSOS "Smart Cell Phone" meter, the GfK "wristwatch" meter and the Eurisko Media Monitor system.   [ MORE ]

The Arbitron Away-From-Home Television Viewing Study

More than one out of every three television viewers (35 percent) spend some portion of their weekly television viewing hours at a location other then their own home.

“The away-from-home TV audience has great potential for advertisers provided it can be quantified,” said Carol Edwards, vice president, Television Services, Arbitron Inc. “This study provides context about the nature of away-from-home TV viewing. The Arbitron Portable People Meter^TM will, for the first time, give the industry the capability of capturing and quantifying the audience on an ongoing basis.”

Note: A copy of the full executive report will be available on the Arbitron Web site April 12, 2007, and at the Television Bureau of Advertising Annual Marketing Conference in New York.

How the Study Was Conducted

A total of 2,506 people were interviewed to explore the way Americans watch television at locations other than in their own homes. From November 17, 2006, to December 19, 2006, telephone interviews were conducted with a random national sample of respondents age 12 and older.

Additional findings were taken from results previously reported by the Arbitron Portable People Meter system in Houston. The Arbitron PPM uses an in-home RF beacon to determine if the TV exposure tracked by the company’s portable, passive electronic meter is taking place in or out of the respondent’s home.

[ Full Text of Arbitron Press Release Here ]

[ Significant Highlights of Study Here ]

[ Download a PDF Copy of The Arbitron Away-From-Home Television Viewing Study Here ]