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July 26, 2010

Comments

Richard Harker

David, I think you've missed the point of the post. The issue is whether radio is a medium that reaches 9% of Americans or 16.5% of Americans. If it reaches 16.5%, then it is worth considerably more then if it reaches only 9%.

It might be useful for you to talk with someone who sells radio time in a large market where cost per point rules. Ask her to explain cost per point and how much more she could sell if her station had an AQH rating 83% higher than it currently is. Then you'll understand.

BB

The PPM is simply drive-by listening. Arbitron ought to be ashamed of themselves, but they are an arrogant, monopolistic organization hell bent on ruling the world of ratings at no matter the cost. They're making their money, and don't care what happens to their clients.

David

So you're saying that agencies would have happily ponied up $7 billion more if only diaries had been used?

That crosses beyond ridiculous into embarrassing.

Randy Kabrich

"The most important measure from a sales standpoint is AQH rating, and here Arbitron’s PPM estimate is nearly 30% lower than its own diary estimates, and 45% lower than Nielsen’s."

This SHOULD be no surprise to anyone, except that no Trade was willing to print anything negative about PPM in 2005 for risk of losing ad dollars from Arbitron (or possibly getting kicked out of the house if you were a certain reporter).

However, all one needs to do is read the RAB "AN INDUSTRY COMMERCIALIZATION VIABILITY ANALYSIS OF THE PERSONAL PEOPLE METER (PPM)
INTERIM REPORT AS OF JULY 2005" Prepared For: The RAB PPM Task Force and The RAB Board of Directors
Prepared By: The RAB PPM Research Subcommittee.

Question #4:
What percentage of the transmitted codes is captured? What percentage with low volume?

Source: RAJAR Validation Test, February 14, 2005

Answer: In November of 2004 the PPM participated in a test where 33 radio stations were played in
various environments and levels of “noise.” The PPM correctly identified 59% of the total radio sessions, in an environment where the goal was 50-70%.

So the PPM GOAL was only to capture 50-70% of the listening and in the test only captured 59% (missing 41%).

And Nielsen's number is 45% higher than PPM?

Imagine that.

Just find a way to capture the missed 41% and the numbers are probably statistically equal.

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