tengallonhat said:
The unfortunate truth is that all of this is voodoo. To sample a couple of thousand people in a city of 3 million is a ridiculous and pointless exercise..
Yes, it is ridiculous. They could do it with about half the sample of they could insure over 90% daily cooperation, instead of around 68%.
The test of a sample is whether the results replicate... that is, come out the same... if you repeat the polling procedure. The sample size used for Houston is larger than what is necessary to achieve the desired result. Remember, ratings are used to determine the cost of advertising, not the heat resistence of tiles on the space shuttle. In other words, a slight margin of error is acceptable and hurts nobody.
And the fact that it governs people's lives, families and livelihoods is an abomination..
Ratinings have to be affordable by the client stations or nobody subscribes. Increasing significantly the sample would increase costs enormously. In fact, to reduce even slightly the margin of error, you have to more than double the sample; stations can not afford this. Stations get the largest sample they can afford... fortunately in most markets this is more than adequate for the intended use.
The foundation for the ratings systems is greed. Arbitron's greed. What are the least amount of people we can sample and what is the least amount of money we can pay them to walk around with an electronic device like a released prisoner?.
Arbron, like any company, has a right to make a profit. Yet their margin of profit is lower than that of most of the stations they have as subscribers... not razor thin, but not excessive either.
Costs for increased sample are passed on to stations, in fact. If anyone in Houston wants to double the sample, they have to convince the rest of the subscribers they ought to pay 150% more than they paid for the diary survey, rather than just the 60% more they are paying now.
The sample size and all methodology in fact is approved by the MRC, which represents advertisers. If the people who buy radio ads believe it is correctly done, then it probably is... the MRC is made up of some of the finest statisticians and consumer polling experts in the world.
And the methodology was asked for by the clients, not by radio.
What's next...a chip in our brains? Then, in a completely lopsided arrangement, it's how little can we charge the agencies and how much can we charge the radio stations?.
Ratings, just like ABC audits, have always been paid for by the media. Advertisers don't care. With no ratings, they can beat down the rates. So the media does surveys or circulation audits to prove the value of advertising and to provide a metric for pricing. As is the usual case, sales tools are paid for by the seller and not the buyer.
If the true motiviation were truth and accuracy, it would be different..
The reason why surveys exist is as stated above... to give a reasonably accurate measure of the size of an audience. And that is what we have.
It's all about greed. The true test of any commercial radio station should be the results it generates for advertisers and the community. And virtually any radio station in town has enough listeners to draw a crowd at a car dealership on a Saturday..
Now that is truly ingenuous. Most advertisers who use ratings have multi-media and multi-medium ad campaigns. Varios TV and cable channels, many radio stations, metro and suburban papers, web support and outdoor and even direct mail and cupons and such. How can an advertiser determine what the results from any one station is? And... big "and" here... radio is not responsible for the pricing, quality of the product, convenience of locations, creative concept, competitive offerings and such for any advertiser. So it is really impossible to measure only one station unless we have a small, one station buy.
So advertisers look at how many potential customers each station and each medium among all media choices can deliver. The rest of the selling job is up to the agency, the client and the product or service. New Coke did not fail because the radio stations they selected were bad... it failed because it was a marketing error.
[/quote] Most local, direct clients couldn't read a ranker if it was tattooed to their arm..[/quote]
The ones buying multiple stations sure know how to do it. But the kind that are confused by anything that falls under "marketing" usually fail, unless they are in small markets or very unique.
They buy their favorite radio stations, or the ones that send the hottest sales people or the ones that invite them to concerts and sporting events. So the ratings don't really matter. But if they have a slow Saturday, they want to change radio stations and fire their agencies...regardless of the ratings. A station with ratings that can't move product is goin to remain a favorite of local direct clients. But since the media queens only look at numbers on a screen (or who's picking up the tab) it's a mess..
You are mixing agencies with media buyers with direct accounts that are clueless. It's funny that the agency media people are usually around longer than the radio sellers that call on them, but independent local businesses that pick their ad media based on personal preference generally are out of business even quicker.
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The system is flawed...but it's the only one we have at the moment, so we better learn to live with it and make it work to our advantage. The move from reported listening to actual listening is closer to the truth but we still have a long way to go.
Except for a bunch of cumers who listen a few minutes a week, the numbers are surprisingly alike in both methodologies; the only other item of significance is the fact that diary keepers round to even hours and half hours most of the time, while the PPM does not.