PPM vs Diary markets

[davideduardo]

David, I saw you said on another thread that the PPM measures what it hears.
How is this not misleading?
I could have a radio on in the car so low that the PPM could hear it and humans might not.

The PPM is not that sensitive. The concern by radio folks is that it may not hear everything due to clothing, being in a purse, etc. There is no concern that it will hear "too much".

I'd think with writing it down that you actually have to pay more attention to who or what you're listening too.

Advertisers want to know if their ads are "heard". That includes incidental listening.

Measuring all audio would be good, as Tidal, Apple Music, all these other things are a thing now.
Personally, I don't think measuring AM/FM/HD/Translator and satellite is enough.
Because we have all of these other ways to listen to music.

The delay is having others pay for it. The fact is that advertisers "run the show" and they use ratings to determine pricing for radio and radio related streams. The music business does not subscribe to Nielsen and has no interest in radio ratings in that sense.

I'd think the only way to get even more accurit measurement is to measure it all.
I'm sure even us radio people don't just listen to traditional AM/FM media.
John

The purpose of the PPM or any radio ratings is to set prices and determine choices for radio ad campaigns. That's the total purpose. Radio stations pay for the ratings so agencies can have them for nearly no cost.

Measuring "it all" is the equivalent of the Census. The cost would be astronomical, as it would have to be done again each week for about $1 to $2 billion dollars per weekly survey. That would be, annually, about six to seven times the total income of the radio industry!

Advertisers are satisfied with the current survey participant numbers. There is absolutely no reason to increase them. The current accuracy level is acceptable to the survey users.

 

[Don CT]

I've always wondered why they cut off the age at 54. Do they think people above that age don't spend money? I would think the older people have more money to spend and have more time to listen to the radio as they are not working. The younger generation seem to be the ones that don't care about the radio anymore.

 

[davideduardo]

I've always wondered why they cut off the age at 54. Do they think people above that age don't spend money? I would think the older people have more money to spend and have more time to listen to the radio as they are not working. The younger generation seem to be the ones that don't care about the radio anymore.

In general, the older people get them more loyal they become to certain brands and products. So it takes more advertising, costing lots more money, to get them to change. So, except for products that only become of interest to people when they are "seniors", few campaigns target those 55 and older; there is just no return on the investment.

 

[Don CT]

In general, the older people get them more loyal they become to certain brands and products. So it takes more advertising, costing lots more money, to get them to change. So, except for products that only become of interest to people when they are "seniors", few campaigns target those 55 and older; there is just no return on the investment.

I think everyone has those brands they become loyal too. Coke or Pepsi. I don't think people change much once they find what they like.

 

[Kelly A]

I think everyone has those brands they become loyal too. Coke or Pepsi. I don't think people change much once they find what they like.

Research has shown the opposite. Brand loyalty isn't a concern for Millennials nor Gen-Z. These folks have grown up in a disposable and subscription world. Their most prized possession is their smartphone, and it gets replaced by the latest every 24 months.

 

[Don CT]

Research has shown the opposite. Brand loyalty isn't a concern for Millennials nor Gen-Z. These folks have grown up in a disposable and subscription world. Their most prized possession is their smartphone, and it gets replaced by the latest every 24 months.

They are also not listening to the radio so how will agencies reach them. They are all on TikToc.

 

[Kelly A]

They are also not listening to the radio so how will agencies reach them. They are all on TikToc.

Chances are they're still listening to radio in the vehicle many times. Are they carrying around a Sony Walkman like you did? Of course not. There's a lot of competition out there. But it doesn't mean they don't listen to the radio.

 

[Don CT]

Chances are they're still listening to radio in the vehicle many times. Are they carrying around a Sony Walkman like you did? Of course not. There's a lot of competition out there. But it doesn't mean they don't listen to the radio.

How many are just streaming off of their phones in the car.

 

[Kelly A]

How many are just streaming off of their phones in the car.

I don't have those statistics. I don't think anyone does. The fact remains, that there are younger generation radio listeners, because they participate in Nielsen PPM surveys. Maybe not kids unless riding with mom or dad, but there definately are 18+ participants.

 

[davideduardo]

They are also not listening to the radio so how will agencies reach them. They are all on TikToc.

Not true. If you look at actual Nielsen data, and take a typical city, you will find that nearly 80% of all 18-34's use radio.

I looked at Chicago, and in 18-34 the cume rating is around 76%. In 25-34, it jumps over 80%.

 

[JH_Radio]

Now all of the streaming services have this thing called "Radio." so it means something different than it did before the advent of streaming.

 

[JH_Radio]

Well David I don't know how to get rid of your name there.
I know you didn't say that.