How to Use Average, Low and High in SQAD Spot Radio

SQAD Spot Radio features Average, Low and High Estimates. Here's how to use these three levels, which are relatively new to the SQAD radio CPP estimates.

Since radio is a frequency medium and, unlike television, radio buyers usually make frequency their top priority, the percent increase/decrease in the Average, High and Low cost levels are going to have significant variation. Radio buying varies from TV in that spot frequency, along with total ratings are used to weigh the strength of the buy. Many markets have a radio station that dominates the ratings for the desired target demographics. This station is usually bought heavily.

Here's how to use Average, High and Low:

AVERAGE

The "Average" level signifies buys that deliver a 50% combined share of the target demo.

We recommend that this level be used when buying/planning guidelines call for normal buying cycles and limited restrictions.

LOW

Buys that don't need as much coverage, so included stations only deliver about a 35% combined share - buys that don't go as deep (number of stations).

Use "Low" when buying guidelines have a long lead time, call for a concentration on efficiencies, and market conditions are softer than usual.

HIGH

Buys that have a 65% or higher combined share of the target demo and go deeper into the station list. Going deeper into the list leads to higher CPM/CPPs, since lower-ranked stations are less concentrated in the target demo.

Use "High" when the buys calls for maximum coverage - extending to stations with a 65% share of the target, along with buys with short lead times and tighter market conditions.

SQAD Spot Radio Methodology Review

Indicated costs are Average 60-second Target Costs-Per-Rating Point and are determined from confidential buy data for Spot Radio purchases. Currently no data is based on 30-second Target Costs-Per-Rating Point. No data from Radio stations is used in SQAD's database. The SQAD CPP data is published and intended to be viewed as a yardstick and not as a listing of the lowest prices achieved within a market. Future quarter CPPs represent SQAD estimates of what the costs will be as the quarters become current, based on historical quarterly relationships in SQAD's database. CPMs are derived from the Metro Area Population estimates, updated each Fall and based on the previous Spring's published data from Arbitron. All dayparts reported are Monday-Friday.

A few other tips:

When budgeting: Use the most current issue of SQAD available, and check monthly updates for significant changes.

When comparing: Use the last month of each quarter as it includes the accumulated buys for that quarter.

Competitive information: For a complete competitive picture, consider looking at similar-sized DMAs or analyzing costs for local radio.

For more information on SQAD's Radio methodology, click here