1. The Portable People Meter Getting Ready for Prime Time Results from the U.K. Field Test Status of the U.S. Test Market The TVB Research Conference October 25, 2000 Bob Patchen VP, Research Standards & Practices The Arbitron Company

2. Agenda n Background -Why a Portable People Meter? -Research Design for the U.K. Test n Results from the U.K. PPM Test -Panel Cooperation and Compliance -Media Exposure Data n The U.S. Test Panel -Current Status -Analysis and Reporting Plans

3. How will we survive the coming explosion in media choices? The complex multimedia landscape of the 21st century promises new opportunities, and new challenges, for advertisers, agencies and broadcasters. Audience researchers must provide viable new solutions for tracking and understanding consumers’ multimedia behaviors, or risk becoming irrelevant.

4. One promising solution: The Portable People Meter (PPM)

5. Why a Portable People Meter? n Simple and appealing for consumers n Single-source multimedia measurement n Bigger samples n Passive detection of exposure n Each source uniquely identified n All modes of electronic delivery n In-home and out-of-home exposure Measures the person, not the appliance...

6. The Large-Scale U.K.Test n Follow-up to successful 1998 pilot n July, 1999 through April, 2000 n Purpose: - Extended test of system technology - Extended test of panelist compliance - First look at audience data

7. Test Design n Manchester, England n 300 persons age 6 and older n Broadcast signals encoded: - AM, FM, & Long Wave radio - National and Local Broadcasting - Terrestrial TV - Satellite & Cable - Analog & Digital - Internet Radio

8. Participating Broadcasters Radio Key 103 Century 105 Magic 1152 Galaxy 102 Classic FM Jazz FM 100.4 Atlantic 252 Talk Radio UK BBC GMR Radio City 96.7 Virgin (Internet also) Television BBC 1 BBC 2 Granada (ITV) Channel 4 Channel 5 B-Sky-B (Sky One) Carlton (Food Network)

9. Technology Findings n Encoders - Widely accepted by broadcasters - Over 200,000 hours of reliable operation - Manufacturing defect found & resolved n Household Components - Easy, quick installation - Reliable docking & motion detection - Successful data communication

10. Panel Cooperation and Compliance

11. Sampling & Recruitment n Random telephone enumeration survey n “Recruits” sampled from stratified frame n Mail and telephone recruitment n Recruitment cooperation rate = 44% n In-person installation by interviewers n 300 persons age 6+ in 140 households

12. Installed panel in-line with universe The installed panel percents were close to the universe on all 7 control variables: n Household size n Presence of children n Age of head-of-household n Employment status of head-of-household n Number of TV sets n Cable/satellite status n Social class

13. Three Simple Rules n Keep your meter with you n Keep the green light on n Recharge your meter at bedtime Note: PPM works to detect codes even when docked

14. Undocking and docking times 7:39 AM 11:06 PM Undock DockWeekdayWeekend 9:09 AM 11:25 PM Median times, November, 1999

15. Time out of the dock Median Hours Meters Were Undocked Per Day n Meters were undocked nearly all day

16. Time in motion 14:52 Median Hours Meters Were Undocked Per Day n Meters were undocked nearly all day 14:15 Median Hours Meters Were Worn Each Day n Meters were worn almost all the time

17. Men and women complied equally well with the PPM tasks

18. Compliance was generally good across all age groups

19. Compliance was consistent across social class categories

20. Detecting Media Exposure n All encoded stations detected by panel n 1.5 million codes detected per week (total) n 36,000 media events per week (total) n About 120 events per person, per week n Daily reports of listening and viewing 20

21. 0 1 2 3 4 5 6 7 8 9 10 11 12 8:0010:0012:0014:0016:0018:0020:0022:000:00 Time Galaxy Jazz FM Classic Key Magic Talk BBC TV1 BBC TV2 ITV Chan 4 Chan 5 Example: Male, age 51, 8A-Mid., Nov. 25 ‘99 A day in the life of a personal meter

22. .00 2.00 4.00 6.00 8.00 10.00 12.00 1/01/1999 11/02/1999 11/03/199911/04/199911/05/199911/06/1999 1/07/1999 11/08/199911/09/199911/10/199911/11/199911/12/199911/13/199911/14/199911/15/199911/16/199911/17/199911/18/199911/19/199911/20/199911/21/199911/22/199911/23/199911/24/199911/25/199911/26/199911/27/1999 Hours of media exposure Radio TV A month in the life of a personal meter MWFMWFMWFMWF Example: Female, age 45, Nov. ‘99

23. The power of multi-media ratings n Radio station campaign on local ITV n 29 spots aired September 8-18, 1999 n What % of total panelists were exposed to at least one spot on ITV? n What % of those exposed listened to the radio station the next day? n What % were exposed, listened the next day, and were new or infrequent listeners? In other words... did it work?

24. What % of total panelists saw the radio station spot on TV? Over half saw the radio spots Total panelists 51% Exposed to spot

25. Of those who saw the spots, who listened the next day? One in four listened 24% Listened to radio station

26. Listened to radio station next morning What % were new or infrequent listeners? Over a third who listened were new New or infrequent listeners 38%

27. Television Viewing Comparisons n PPM vs. BARB set-top people meters n Hourly AQH persons ratings (6AM-6AM) n AQH defined at “average minute” level n Encoded commercial channels only n Total persons age 6+ n November 1999 n Weekdays, weekends

28. BARB Commercial TVPPM Commercial TV PPM vs. Set-Top People Meters: Monday-Friday

29. PPM vs. Set-Top People Meters: Saturday-Sunday BARB Commercial TVPPM Commercial TV

30. Overall Conclusions from U.K. Test n The PPM technology worked well n Panelists cooperated with the PPM tasks n PPM ratings effects need further study n Overall results are very encouraging and support taking the next research step n U.S. test is needed to confirm and expand upon U.K. findings 27

31. U.S. test market now underway n Philadelphia DMA n 75 encoded Radio, TV, Cable channels n Representative, projectable consumer panel n Comprehensive systems and methods test 28

32. Implementation in two stages Stage One n Wilmington Radio Metro (in Phil. DMA) n 300 persons age 6 and older n “Total market” ratings only n Results early in 2001 Stage Two n Expand panel to cover Philadelphia DMA n Bigger sample, more detailed ratings n Results early in 2002 28

33. Stage One: Progress to Date Media Participation n All 38 invited radio stations n All 8 local TV stations n Top 25 cable services & networks Fieldwork n 1,400 Hh enumeration survey completed n Meter installation to start later this year n Encoder installation is already underway 28

34. “On the air” as of October 12, 2000 n 32 radio stations n 2 television stations n 7 cable services and networks

35. Initial reports planned for U.S. test Technical quality measures n Meters detecting encoded stations? n Meters reporting properly each day? n Appropriate editing & crediting rules? Panel Quality Measures n Sample representativeness n Recruitment cooperation rates n Meter undocking and docking times n Hours worn per day

36. Next stage: ratings comparisons Prerequisite: satisfaction with panel quality and cooperation Total market audience ratings n Radio compared to Arbitron data n TV, Cable compared to NMR data n By demo and daypart n AQH and cume persons ratings n Time spent viewing & listening Stay tuned!

37. Thank you!