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PPM – how to measure radio effectively

PPM – how to measure radio effectively. SEMPL 2008. Today’s agenda. Some financial facts From Average Quarter Hour to minute-by-minute Ratings Changing the Price of Radio Advertising Managing the Inventory Future possibilities. Ad Spending.

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PPM – how to measure radio effectively

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  1. PPM – how to measure radio effectively SEMPL 2008

  2. Today’s agenda Some financial facts From Average Quarter Hour to minute-by-minute Ratings Changing the Price of Radio Advertising Managing the Inventory Future possibilities

  3. Ad Spending ”Radio had the largest growth (23,9%) Year-On-Year” Share of Market Q2 2008 Source: IRM

  4. In 2005 the CPT on radio was 52 NOK.In 2008 it is 108! TV is 200 2006 - 261 million NOK through media agencies 2008 - 360 million NOK! P4 breaks advertising-records

  5. Radio is taking larger share from the advertisers

  6. Radio is still optimistic for the future

  7. The Portable People Meter system – PPM http://ppm.arbitron.com/

  8. Issues • Editing rules • Panel size • Small stations require larger panel • More detailed breakdowns require larger panel • Panelists must comply • Software and reporting

  9. Advantages with PPM • Daily updated audience measurement • More accurate method -> more confidence in radio • Very similar method to TV (in Norway at least) ...but it is expensive...

  10. A Brief Overview National Radio Commercial Radio Market Share: Q3 2008 Market Share: Q3 2008 Source: TNS Gallup, National PPM Radio Survey

  11. Higher Reach With Same Definition: Average weekday 2007 AQH PPM vs. AQH CATI 10:00 18:00 14:00

  12. Big Difference: 15 min. cume to 1 min. net: Average weekday 2007 AQH PPM vs. AQH CATI 10:00 18:00 14:00

  13. How did we set the price of 1 GRP? Put 1 spot in every hour, every day, for a week = 162 spots Value with spot pricing: 1 200 000 NOK PPM 1 min. definition  315 GRP* Result: CPT increased by 32% 1 200 000 NOK 315 GRP = 3810 Cost Per Point * Used April/May 2006 average

  14. Challenges: Estimating future ratings Predicting inventory and sold-out ratio Over- and Under-delivery Most of the salesforce had little knowledge of the new rating currency Tighter control Increase Traffic function Handling a decline in ratings (shortage of inventory) Changing the placement of a block Solutions:

  15. Detailed reports of a campaigns performance: Simple overview

  16. Planning & Split Analysis (3+) • Scenarios: • 100% P4 • 80% P4, 10% K24, 10% SBS • 60% P4, 10% K24, 30% SBS

  17. Single-Source Planning Reach (%) Frequency Source: PPM Radio & TV test-data, TNS Gallup

  18. To sum up... Radio has had an amazing growth in advertising turnover after the introduction of PPM as the currency Radio advertisement has become more precise You can report and you radiodata in your trackingstudies Better utilization of inventory (resources) Reach goes slightly up, frequency down Single-Source Radio/TV-planning is next!

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