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 Share of Market Q Source: IRM ”Radio had the largest growth (23,9%) Year-On- Year”

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

Radio is taking larger share from the advertisers

Radio is still optimistic for the future

The Portable People Meter system – PPM

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

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...

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

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

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

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: NOK PPM 1 min. definition  315 GRP* Result: CPT increased by 32% NOK 315 GRP = 3810 Cost Per Point * Used April/May 2006 average

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:

Detailed reports of a campaigns performance: Simple overview

Planning & Split Analysis (3+) Scenarios: 1.100% P4 2.80% P4, 10% K24, 10% SBS 3.60% P4, 10% K24, 30% SBS

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

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!