2009-05-24

PPM REALITY

"I haven't worn a beeper in years, and nothing I've got goes with it," Tom Joyner joked after his show was dropped by WVAZ-FM in Chicago. "PPM has systematically rated urban stations much lower than they have been in the past. The diary method that Arbitron used to use was more favorable."

The Federal Communications Commission last week announced an inquiry to determine if the new methodology undercounts audience for radio stations targeting minorities. Arbitron responded by saying it welcomed the opportunity to explain the advantages of PPMs.

I spent a day at Arbitron headquarters in Columbia, Maryland studying the PPM ratings system. Unfortunately I cannot tell you what was discussed, due to my employer sending me to this "very informative" all-day session for the good of our success. What I can say is that the answer was very clear, as to what steps are needed to be taken for your radio station to prosper in the PPM radio ratings system.

Based on the multitude of factual information that the Arbitron Executives revealed at the all-day meeting, executing for the diary ratings environment is totally different than the methods necessary to succeed in the PPM ratings environment. Many that were there at the PPM seminar are doing what was learned at the seminar. However some are not adapting to the necessary changes needed to succeed in the new PPM frontier. Then there are those that learned from the meeting with every intention to make the drastic changes, but their managers are slow to change. Then there are those that were just overwhelmed with the all the statistical information and frankly need another session.

The results are in the ratings at the markets now participating in the PPM. I can tell which operations quickly implemented the changes and those -- for what ever reasons -- are not. For those operations that are not, they will only sink lower each week in the PPM world. Not attacking the PPM with research methods, based on facts given by Arbitron at that all-day session, you are sure to fail. The Research and Operation Methods for the PPM, are totally different than the Diary world. If you are implementing the same DIARY methods in a totally different PPM measurement, you are sure to fail. Or you may be one of those operations that is O.K. with mediocracy, comfortable to be below the jsut-passing level that you previous had.

There is a Murphy in the PPM that throws even a highly educated PPM Programmer methods out the window. A former Chicago radio personality named Eddie Volkman put it best. Volkman said that if a teenager is riding to and from school with his father, whatever radio station that the father is listening to are credited to both PPM meters. The teenager probably is listening to the IPOD, while his father (or mother) is listening to a more adult programmed station. The results so far are closer to proving Volkman's point. Daddy's News format and Mom's AC station are the most successful formats in PPM cities.

Will the top fifty market radio stations' owners in the PPM-rated system move towards the successful trend in News and AC formats, away from the teenager/young adult format during drivetime? What will happen to Urban or Modern Rock formats?

Drive-time cume is important to a radio station. Without a highly rated drive time show (so far the younger demo formats ratings are moving southward), that radio station loses advertising revenue. That radio station losing revenue will have to make tough decisions. The tough decision could be lay-offs, or hire someone that understands methods to succeed in the new PPM world.

These are real facts, from a "yet-to-be-accreditted" PPM rating system.

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