Radio advertising that delivers
measurable results and profitable new customers

« Previous | Main | Next »

November 23, 2007

One Way To Solve Arbitron's PPM Problem

We read this article in MediaPost about the battle between Arbitron, with it's new (and supposedly improved) PPM measuring system, and major radio broadcasters who are critical of Arbitron's statistical validity.

"At issue are the ratings data produced by Arbitron's Portable People Meter, a passive electronic measurement device that is set to become the industry's currency for radio ratings over the next couple of years."

We came up with a simple solution. Simple and effective.

Measure based on results instead of audience size.

"The CEOs of Clear Channel, Cox Radio, Cumulus Media and Radio One demanded that Arbitron meet its "in-tab" sample targets for all age segments in the 18-54 range and all ethnicities, including African-Americans and Hispanics, who they say are under-represented. The broadcasters also took issue with Arbitron's proposal to lower the number of participants required for a sample size to be considered statistically valid."

Yeah, instead of paying based on audience size or points or demographics, radio stations can just let advertisers bid to be on their stations based on the profitability of advertising there. In other words, advertisers pay for value received.

Get it?

This is what we do in direct response advertising every day. After all, it is the end results that actually matter, not the fancy positive spin on some questionable (and ever-changing) Arbitron reports.

Now think about the implications of this "results" approach. This way, everyone would be focused on....what?

Answer: What works in radio advertising. What drives profit and what just entertains. What ACTUALLY gets people to buy vs. what everybody THINKS gets people to buy.

Posted by Jeff Small & Brett Astor at 12:55 PM | Permalink