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August 09, 2007

One Reason We Always Test in Direct Response Radio

Why not just pay the radio station based on the Arbitron numbers and be done with it? Arbitron figures are, after all, independently done, and the sample size is large. So aren't the numbers reliable?

Direct response radio advertisers use the Arbitron numbers as a guidepost, but not as gospel. We always test a new station to see if the Arbitron numbers hold up. Often they don't, so we negotiate rates that do work for the client.

Mark Ramsey's post titled "The difference between listening and hearing" does a good job of highlighting a nuance of the Arbitron measuring system that has serious profit implications for direct response radio advertisers.

PPM," he said, "measures exposure, not 'listening.' The device 'receives' - and we use that as a proxy for the actual person holding the device."

Now I will assume that the device is generally in the proximity of a listener as the "reception" is happening (true or not, a far better assumption than the one which says folks carry their paper Arbitron diaries with them wherever they go and fill them out as they listen).

This distinction between "listening" and "exposure" is most practically one between "listening" and "hearing." And the consequences for this difference are profound.

"Listening" is active. "Hearing" is passive.

It's easy to see why it takes skill and experience to make direct response radio work. The bottom line is that with direct response radio advertising techniques, advertisers pay the stations what they're worth, and not more. And they're worth more if their audience is listening, not just hearing.

Posted by Jeff Small & Brett Astor at 06:39 PM | Permalink