PPM Hints Arbitron has indicated that the move from PPM has resulted in the data being more stable from book to book. PPM picks up almost twice as many stations than the diary methodology – which results in an increased Cume for many stations and a reduction in AQH Rating and Time Spent Listening (TSL) to some stations. (Please refer to the “Arbitron PPM Details” box.) At this time, we recommend that clients continue to use SQAD Spot Radio in the same manner, based on some guidelines from Arbitron – the most important being that “only two U.S. markets have been measured with PPM – it may be premature to make predictions on a broad scale.” Please refer to the Planning Considerations and the Arbitron PPM Details sections. These tips are designed to help with different clients’ radio campaign goals and planning considerations. We have also supplied information on how SQAD’s data collection will be impacted, below. We will be monitoring all of the confidentially contributed radio buys closely and will be providing a MarketTrend for the top 10 PPM metros (which also encompass some embedded markets). If you have any questions, please contact your Arbitron representative or contact us.

Rank ***	Market	Panel Size	PPM Demo Data	PPM Currency	Last Diary Report
7	Philadelphia	2040	Jan/Feb 2007	March 2007	Fall 2006
6	Houston-Galveston**	2,000 #	Apr/May 2007	June 2007	Winter 2007
1	New York	3720	Oct 2007 - Aug 2008	Sept 2008	Spring 2008
18	Nassau-Suffolk (Long Island)*	1440	Oct 2007 - Aug 2008	Sept 2008	Spring 2008
38	Middlesex-Somerset-Union*	925	Oct 2007 - Aug 2008	Sept 2008	Spring 2008
2	Los Angeles	3275	Jul/Aug 2008	Sept 2008	Spring 2008
25	Riverside-San Bernardino	2040	Jul/Aug 2008	Sept 2008	Spring 2008
3	Chicago	2595	Jul/Aug 2008	Sept 2008	Spring 2008
4	San Francisco	2245	Jul/Aug 2008	Sept 2008	Spring 2008
35	San Jose*	1155	Jul/Aug 2008	Sept 2008	Spring 2008
5	Dallas-Ft. Worth	1815	Oct/Nov 2008	Dec 2008	Summer 2008
8	Washington	1775	Oct/Nov 2008	Dec 2008	Summer 2008
10	Detroit	1920	Oct/Nov 2008	Dec 2008	Summer 2008
9	Atlanta	1645	Oct/Nov 2008	Dec 2008	Summer 2008

Source: Arbitron

 

KEY:

• *** Rank as of Fall 2006. Rollout schedule was based on Fall 2005 Market Rank and is subject to change.
• # DMA
• * Embedded Market
• ** PPM Radio Ratings Data fo Houston accredited by MRC

PPM Planning Considerations

The change of audience ratings is a reflection on Arbitron changing methodology and not because stations have lost audience. Stations have said they don’t plan to lower unit rates as a result of methodology changes and a higher CPP is the expected outcome.

• Rating compressions: How deep into the ranker does the client buy? Do they buy only the top rated stations or do they buy deep into the ranker? People were more apt to record their top two or three stations with the diary while PPM records all station exposures.
• Daypart Mix: The ratings impact isn’t evenly distributed across the day.  Radio listenership seems to be more even and stable throughout the day rather than spikes and valleys shown by the diary. 
• Preparation: Arbitron has committed to two “pre-currency” months prior to PPM becoming currency.  This means that while all buy/sell transactions are based on the Diary (it’s still the Currency), the “pre-currency” allows an advertiser/agency a “glimpse into the future.” 
• Accountability:This is a transition time and as agencies who went through LPM know, there is no way to gauge the future perfectly. If you have a client who has strict accountability/audit standards then expectations with the client and the stations for this transition period should be established. If a buy is posted be aware that buying on Diary and posting off PPM isn’t methodologically consistent and thus not allowed. Discuss with the station and client to determine what makes the most sense for your circumstances given this situation. Arbitron suggests you re-rate the buy with PPM once it becomes currency to create a new index to measure the station’s performance against.
• Individual Market Trends: Arbitron measures markets on a local basis as each is unique.  Only two U.S. markets have been measured with PPM and therefore it is NOT appropriate to generalize findings to other PPM markets.  Arbitron does not endorse using PPM to adjust ratings data for non-PPM markets.

Arbitron PPM Details

Methodology Review

• Meter worn by panelists from “rise to retire.”
• Meter captures all exposures from encoded stations.
• Meter has motion detector and panelists receive incentives for how long meter is worn on a monthly basis. (NOT based on radio exposures but how long wearing meter.)
• When “retired”, panelist charges the meter and the exposure information is sent to Arbitron; Arbitron contacts non-compliant panelists.

Survey Consequences

• More market information on any given day than the Diary methodology, allowing for more detailed analysis of promotions, events and sports.
• Allows for monthly data rather than quarterly data.
• Data is more stable from book to book.

Arbitron Radio Data Impact

• The meter is picking up almost twice as many different station exposures than what the diary reflects.
• This increased number of stations has caused the Cume to increase tremendously for many radio stations in the market.
• Conversely, this increased number of stations means Time Spent Listening is dramatically shortened due to listening being spread across more stations than previously realized.
• The increased accuracy of electronic measurement captures the fragmented media landscape and similar to LPM the AQH rating is decreasing.

Source: Arbitron