PPM Debate Hits Wall Street Journal

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PPM Debate Hits Wall Street Journal


Sep 22, 2009 by Mark Maier

If you caught the article "Radio Shows Tune In To Listener Habits" in the Wall Street Journal you get a feel for a different perspective than you may have had about Arbitron's PPM and complaints by personalities like Ryan Seacrest over what the data dictates....

" He has been complaining about being told to cut short the chatter and play more Lady Gaga and other hit artists, all because of the rollout of an audience-measurement system used for selling advertising.

Arbitron Inc.'s Portable People Meter two years ago began replacing radio's antiquated diary-based audience-measurement system, in which people kept written records of what they listened to. The People Meter, a cellphone-size device carried by a panel of consumers, instead relays exactly which stations people are hearing and when, be it driving their cars or pushing carts down supermarket aisles."

"Now, with two years' worth of data in some markets, program directors are figuring out nuances like the optimum ratio of talk to music, or how many commercials a listener can bear before switching the dial. And the highly detailed information is putting programmers under more pressure to make sure listeners don't bolt midprogram."

The most interesting trend to watch is what the PPM data means for our clients and our advertising schedules...

"Some stations are tweaking their advertising schedules, believing they can keep more listeners if they run shorter blocks of ads more frequently. Radio One Inc.'s Doug Abernethy, who oversees the Detroit and Houston markets, is encouraging stations to run no more than three ads in a row, compared with as many as six in the diary days. He believes the tinkering helped his once top-ranked urban stations KMJQ and KBXX rise back to their top slots after declining significantly after the People Meter replaced diaries two years ago in Houston."


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Readers Comments
WhiteSites
September 23, 2009 3:17 AM
Its not the number of commercials you play, its the annoying creative that is behind them that makes people want to change the dial. People will watch hours upon hours of super bowl ads, but one drug company commercial is all it takes for me to switch the dial. And they wonder why the internet is stealing market share? Its sad that they even needed some fancy tracker to figure this out.


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