New Radio Strategies

I remember the good old days of the radio survey. The airwaves were suddenly flooded with juicy prizes, jocks did prep for a change and promotional street teams were stunned by the arrival of half decent giveaways. At the heart of this unnatural flurry of activity was the mythical “diary”. You know the one. An ancient system requiring householders to conscientiously tick boxes on a paper spreadsheet – thereby capturing an accurate record their listening habits.

Hmmm… Nice idea. But it was more often a frenzy of last minute ticking as the diary-keeper saw the research collector walking up the garden path. Of course, the main problem with this kind of research is that instead of providing actual listening patterns – favorite stations are often recalled from memory alone. So although joe-public might be tuned into one particular radio station – they actually record a more recognisable brand (with a bigger advertising budget). Which reminds me of a radio network I once worked for that offered cash incentives for tip-off’s about the streets where research companies had distributed the precious diaries. This top secret information would result in station vehicles cruising ominously up and down the lucky neighbourhoods, “building awareness”.

Traditional diary surveys require a lengthy process and are inaccurate at best. Quarter hour listening figures are usually over-reported and new research has shown that people who fill out diaries often listen to twice as many stations as they actually write down. However, for most radio markets around the world it’s still the best and only system we’ve got.

This uncertainty is embarrassing in an age when every on-line click can be recorded – and precise viewing figures dictate billions in advertising revenue. It’s therefore important for radio to keep up with our high-tech media cousins by providing accurate listening figures – rather than making do with perceived behaviour. Radio advertisers have always been rightly suspicious of surveys and deserve more certainty before committing their cash. This, of course, is where “PPM” steps into the spotlight. (Portable People Meters).

Many “New Radio Strategies” readers will already be familiar with this technology – but it represents such an important step in radio’s evolution that I think it’s worth a few more paragraphs. Especially for those outside the States where PPM has yet to really emerge.
Put simply, PPM uses technology to take the guesswork out of ratings. Survey participants carry around a small electronic device that automatically keeps track of the radio station playing in the background. This ingenious system uses inaudible codes hidden within a broadcast and the PPM unit decodes these signals to identify which station is listened to and for how long. The technique not only works with analogue broadcasting – but is apparently just as accurate with digital signals and internet radio too. Another smart feature is a built in motion detector that can tell whether the surveyed listener is carrying their personal meter around with them. Clever stuff.

Although several contenders are promoting various forms of this new technology – Arbitron, one of America’s biggest media research companies, are leading the pack by already running PPM surveys in key US markets. Arbitron started developing the concept back in 1992, so they’re obviously keen to promote its many wonders, claiming it heralds a “New Age For Radio”. They may be right. It’s not just the obvious benefits of being able to collect and deliver more audience data in less time. PPM promises new insights into how listeners consume radio too. Results are far more reliable – and initial research has shown that, compared to traditional surveys, a typical radio station reaches twice as many listeners than was previously thought.

It goes without saying; “Electronic Audience Measurement” has great potential for radio advertising. There’s a research product called “Media Monitor” which can synch up to PPM data making it possible to track a listener’s reaction to content in real time. Imagine, for example, being able to tell exactly which commercial causes a listener to switch stations… This kind of information can only help to improve the overall sound of a station, providing a valuable insight into the effectiveness of various creative approaches. These “real time ratings” will also help to track listener peaks relating to certain on-air events – giving programmers the opportunity work closer with sales departments to maximise advertising revenue.

So what’s not to like? Well, it seems there have been a few teething problems and niggles… In August ‘07, a PPM survey in Texas was pretty much ruined when vital data was inexplicably lost. PPM research has shown that quarter hour listening figures for radio are down. Many broadcasters are getting impatient with the time it’s taking to roll out the new technology. Arbitron has also been criticised for charging premium prices for the service (which seems strangely hypocritical given radio does the same thing with breakfast advertising etc.) Others speculate that PPM could eventually impact negatively on future revenue.

FMQB, an American in-house radio publication, featured an item about an assistant programme director from WZOR Wisconsin who called PPM, “The biggest sales farce ever…” Adding succinctly that… “Arbitron is horrible.” But my favourite slam comes from the March 2008 edition of GQ magazine which ran a story about the crisis facing US “shock radio”. The feature, titled “Who Will Shock The Children”, reported on a convention of 200 “Morning-Zoo-Crew-Dudes” in downtown Chicago. Arbitron Vice-President John Snyder had bravely given a presentation to a largely hostile audience and the article picked up on the crowd’s displeasure, recounting the jocks’ opinion that… “PPM was irredeemably flawed and possibly a tool of the devil, and that the guys from Arbitron should seriously consider taking their little people meters and shoving them up their asses”.

But grumpy old shock-jocks aside, it seems the industry is generally in favour of PPM. It has to be said… the old diary system is a leftover relic from the days of carts and splicing and anything that presents a more realistic picture of audience behaviour has to be a good thing. With any luck the technology will get more affordable and eventually become industry standard for all radio research companies. As Doug Abernethy, Market Manager for Radio One in Houston, put it…”Radio needs to look at this as a way to rejuvenate our business for the better. Change is inevitable.”