P1's in a PPM World: New Insight Into Who Matters Most

DMR and Arbitron set to release groundbreaking PPM research this summer

CINCINNATI, Ohio – May 31, 2007   DMR, Arbitron and the University of Wisconsin's AC Nielsen Center for Marketing (UW-Madison) are set to release in depth PPM research this summer. The new study, entitled: P1's in a PPM World: New Insight Into Who Matters Most is the first-ever study of listener loyalty and preference (P1, P2, etc.) patterns over time. The research team analyzed over one year’s worth of daily panelist-by-panelist level data from Houston PPM.

...not all radio listeners are created equal: heavy radio users drive nearly 90% of the ratings. According to UW-Madison’s Ty Henderson PhD, “The listening preference patterns in this analysis mirrors what we see in many consumer products: a select few drive the majority of the category. Knowing who matters and who to target will be critical to stations’ marketing and programming.”

Another important finding is that not all P1's are created equal. Although this was more or less known to be true in the diary world, a new measure, "percent of listening" (POL) uncovers the select few who REALLY matter the most. In fact, even so-called "mass appeal" stations derive the majority of their listening from a very small, important group: less than 2% of the Houston market drives nearly half of the listening for a leading AC station. Bill Rose, senior vice president of marketing, Arbitron Inc. says, "Understanding P1 listening is crucial for radio programmers and this study will provide fresh insight into the dynamics of how it works in the PPM world.”   [ Full Text of the Release ]

PPMNews Note:  We will post a link to download the study as soon as it is available.

Arbitron Taps Joel Zaremby for Project Apollo

Veteran Media Buyer and Seller to Support Project Apollo Business Development

NEW YORK, May 29, 2007 – Arbitron Inc. today announced the appointment of Joel Zaremby to senior account manager for Project Apollo. 

Based out of Arbitron’s New York City office, Zaremby will be responsible for creating, managing and securing sales opportunities surrounding Project Apollo.  In addition, he will educate customers on the research technologies involved with Project Apollo (the Portable People Meter and the Homescan® scanner) to help them understand how to leverage the relationship between media exposure and purchase behaviors.  [ Full Text of Press Release ]

RBR: PPM's Impact on Ratings

After looking at the first month of PPM data from Philadelphia, Bear Stearns analyst Victor Miller says radio may have to rethink how it sells itself to emphasize the greater audience reach than was ever reported by diaries. For one thing, he notes that Clear Channel's Philly cluster fell from #1 to #3 in ratings under PPM, but was still #1 in total cume. [ MORE ]

Inside Radio: All Eyes Are On The Rate Card

A Power Shift: PPM Gives Advertisers More Leverage Over Stations

Media buyers say they’re already using PPM data to determine ad buys. And Philadelphia stations are being told by the market’s biggest radio buying service that the shift to PPM requires “a number of adjustments.” Like basing buys on the latest one-month PPM data – and not a three-month average that has been the norm with diaries.  [ MORE - Subscription ]

Radio: People Meter Gets The Last Laugh

The radio industry which has fought everything from AM stereo and high definition radio (back when it was really new technology) right up to the Arbitron People Meter ratings system is proving once again why radio has lost it.

The Portable People Meter (PPM), an imperfect but necessary update to the paper diary system in this digital age, is turning out to be -- well, not so bad after all. [ MORE ]

Radio INK: Hispanic Broadcasters Urged To Embrace The Future

Speaking during Wednesday (5/23) afternoon's Group Heads panel at the Radio Ink Hispanic Radio Conference, Clear Channel senior vice president for Hispanic Radio Alfredo Alonso warned broadcasters that they must embrace all methods of expanding their brands and reaching listeners if they hope to compete in an ever-changing radio landscape.

... Alonso said this acceptance of new ideas must also extend to Arbitron's Portable People Meter. "The PPM is the new wave of measuring radio," he said. "We can't be afraid of it; we have to accept it. We need to do a better job of taking our medium and embracing new technology, so that advertisers feel we are embracing the audience. If we don’t' embrace this new technology, we will be left behind."  [ MORE ]

Forbes: Radio Redux

Q&A with John Hogan

After voicing concerns about the effectiveness and cost of Arbitron's Portable People Meter, Clear Channel agreed earlier this year to use the system in Philadelphia. Now that you're on board with PPM, how quickly do you expect to adopt it in other markets?

It depends on how quickly they commercialize it in other markets. We continue to have concerns about the PPM methodology and reliability, as well as the price. We are a very, very strong proponent of electronic measurement [but] it's baffling why in this instance, technology is making things more expensive, rather than less expensive.

We continue to talk with Arbitron and we've shared these same concerns with them. I'm not particularly impressed with it thus far. They're showing an increase in the number of listeners and a significant decrease in the amount of time people are spending with radio. I question the methodology. I question the way they assemble a [listener] panel, I question their ability to accurately reflect black and Hispanic listening.   [ MORE ]

Cox Signs On for PPM

Arbitron and Cox Radio Extend Group Agreement

Agreement includes Portable People Meter radio rating services in eight markets

NEW YORK--(BUSINESS WIRE)--Arbitron Inc. (NYSE: ARB) today announced that Cox Radio Inc. (NYSE: CXR), one of the largest radio broadcasting companies in the United States based on revenue, has signed a five-year renewal contract for ratings and related services for Cox radio stations in 18 markets.

The agreement also provides Cox Radio with Portable People Meter ratings services when the new audience ratings technology is commercialized in the eight Cox Radio markets encompassed in Arbitron’s previously announced PPM rollout plan: Houston, New York (Nassau-Suffolk), Atlanta, Miami, Tampa, San Antonio, Orlando and Jacksonville.  [ Press Release ]

Houston Chronicle: TV Radio Notebook

Take time off, and things bust loose

...Stations have not publicized their PPM numbers, but there are sufficient rumors to indicate that the first official report from the meters may show significant changes from the final report using paper diaries.

Tom Lee, program director for sports talk station WIP in Philadelphia, said the meters tend to produce higher numbers of cumulative listeners while time spent listening is generally lower. This is especially true, he said, of FM music stations.

As for what it's like to deal with the new world order, Lee said: "You can't lie with the PPM. It registers what it hears. It's a little discomfiting that you have 2,000 people (determining ratings), but it is what it is."  [ MORE ]

Down for the Count

The credibility of Sydney's radio ratings system has been challenged for decades. So, as radio markets in the US begin to embrace electronic devices to measure audience numbers, expect renewed pressure on the radio industry here.

Fifteen years ago the Australian TV industry introduced an electronic measuring system, yet the radio industry still relies on the memory (and honesty) of householders to tick a box manually on a paper spreadsheet to record their listening habits.

...

In a couple of months, Warner's group will call for tenders for a new three-year ratings contract, worth about $20 million. Nielsen Media Research's current contract is due to expire at the end of next year. Warner says electronic measuring will be high on the agenda. Arbitron is expected to pitch its meters; another international market research company, Ipsos, is pushing the SmartPhone; and Nielsen is working on a third option, yet to be unveiled.  [ MORE ]