Emmis CEO Jeff Smulyan Says PPM Will Give Credible Ratings

[Corned Beef and Cabbage]

http://emmis.com/

 

[MickJ]

That's what I love about radio. One day radio executives announce the coming of a new way of rating radio listening, and only 20 years later, it's almost here!

 

[davideduardo]

That's what I love about radio. One day radio executives announce the coming of a new way of rating radio listening, and only 20 years later, it's almost here!

Almost here? It is here. Philadelphia and Houston are now people meter-based currency, and the device was tested for two years in Philly and then two more years in Houston before starting.

The PPM development started in 1995 or 1996, so it has not been 20 years. And it was not announced by radio execs, but by Arbitron, its creater.

The amount of testing and the delay were not caused by radio... but by the MRC, or Media Research Comittee, which is a board of researchers and statistical gurus appointed by the ad agency community to guarantee the validity of the methodology and sampling.

New York starts in two months, and then the top 10 markets roll out in 2008, with the entire top 50 in three years.

 

[MickJ]

Almost here? It is here. Philadelphia and Houston are now people meter-based currency, and the device was tested for two years in Philly and then two more years in Houston before starting.

You're being technical. I know it's here in a couple of markets. I meant universally "here".

The PPM development started in 1995 or 1996, so it has not been 20 years. And it was not announced by radio execs, but by Arbitron, its creater.

I wasn't counting the years on my fingers from the first time I heard about it. I just know it's been a long time. Whether it's my number (20) or yours (12) radio moves at glacier-like speed. And while it may have been ONLY since 1995 that it any action was taken, it was well before that when the idea was conceived.

The amount of testing and the delay were not caused by radio... but by the MRC, or Media Research Comittee, which is a board of researchers and statistical gurus appointed by the ad agency community to guarantee the validity of the methodology and sampling.

It is radio's sycophantic relationship with ad agencies that empowers them to dictate to radio stations. A set of gonads and some unity among broadcasters might have turned that around. In my experience, agencies are paper tigers.

I can appreciate your investment in the status quo and your belief in it. I'm sure it's genuine. I hope you can appreciate the sincerity of my beliefs. I took the proceeds of my radio investment and plowed it into something else so I put my money where my mouth is.

I still love radio. I listen to it every day. But as a business, the upside appears limited.

I'm sure you disagree.
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[davideduardo]

You're being technical. I know it's here in a couple of markets. I meant universally "here"..

It never will be universal, any more than the Nielsen meter is. It is unlikely the PPM will go beyond the top 75 to 100 markets, and the diary will continue in the remaining 200 to 225 markets. By the end of next year, we will have the PPM in markets that represent 30% of all radio ad revenues in the US. That is "now" to me.

I wasn't counting the years on my fingers from the first time I heard about it. I just know it's been a long time. Whether it's my number (20) or yours (12) radio moves at glacier-like speed. And while it may have been ONLY since 1995 that it any action was taken, it was well before that when the idea was conceived. .

Radio does not move slowly. Radio has nothing to do with the PPM. The concept of electroinc measurement was being worked on in the early 60's by Arbitron and Nielsen. However, before it could come to radio the ability to make measurement devices truly portable had to be solved, and then the system had to be accepted by the advertising industry. The MRC accreditation took 6 years; without ad agency buy in, there is no reason for ratings... ratings are nearly 100% a sales and pricing tool.

It is radio's sycophantic relationship with ad agencies that empowers them to dictate to radio stations. A set of gonads and some unity among broadcasters might have turned that around. In my experience, agencies are paper tigers.

It is car manufacturers sycophantic relationship with drivers that.....

Every service provider or manufacturer or retailer tries to provide what the customer wants. In the case of radio in larger rated markets, we provide a vehicle to reach consumers with the advertiser's message. If we do not provide that vehicle, or the listeners we are "renting out" in 60 second slices are not the ones advertisers want, then we don't make money.

The car dealer with a lot filled with purple polka-dotted vehicles is not going to sell many, either. Nobody wants 'em.

I can appreciate your investment in the status quo and your belief in it. I'm sure it's genuine. .

There is no status quo. Radio changes constantly.

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I still love radio. I listen to it every day. But as a business, the upside appears limited. .

Well, I am in the segment of radio that grew about 20% last year, so I don't find it limited.

 

[MickJ]

David, I've been reading you long enough that I could have posted the response FOR you.