Summary Diary vs PPM

1
A Short Explanation of PPM Radio Measurement
2008
2
The Portable People Meter (PPM)

• PPM is electronic measurement that reflects what
  you actually do, not what you remember you must
  have done
• Cell-phone sized device that goes with you every
  day, is programmed to record everything you hear
  that is encoded
• Nearly all stations have encoded their
  over-the-air and online content
• Downloads every night, sends data to Arbitron to
  process
• Instead of new people every week, theres a panel
  of people balanced to represent the market that
  stays in place for up to 2 years
• Currently in 8 markets. Will be in top 10 by
  early 2009. Will be in top 25 by 2010.
• Like Nielsens Local People Meter, the
  measurement system changes the ways people
  actually have always used radio doesnt

3
The Big Changes

• More timely information -- PPM data is refreshed
  each month so you can get a faster read on
  changes in the market
• Since sample doesnt change every week, ratings
  remain steady and better reflect peoples actual
  habits and usage patterns
• Data is available throughout the year, 52 weeks,
  13 reports
• PPM picks up occasional, unintended as well as
  regular, habitual listening, resulting in higher
  cumes, but lower AQH ratings than by Diary
  methodology
• But -- the PPM AQH audience composition is nearly
  identical to the Diary reports. So every spot
  you air is mostly reaching the stations core
  audience.
• We are able to see that people who are employed
  full time listen to more radio than those who
  dont work
• AQH listening is about 30 higher for men overall
  than women
• Hispanics and Blacks have higher listening levels
  than others in PPM
• Sports Ratings become real
• Special events or specific program ratings become
  real
• Now includes measurement of 6-11 year olds

4
Why Do the Ratings Go Down?

• Total listening time was overstated
  (mis-remembered) in Diary
• Total number of stations heard is understated in
  Diary
• About 15 of Diaries reported listening of 25
  hours to a single station, while PPM reports only
  4 of panelists listen that long. So a lot of
  listening time reported by the Diary will not
  show up in PPM.
• Overall, PPM reports people spent less actual
  time with radio than the Diary shows. Divide that
  time by double the number of exposures to
  different stations, and each stations ratings
  will likely be lower in PPM than in Diary
  reports.
• Diary understated listening by Employed people.
  So more PPM ratings are generated by Employed
  people than unemployed people. This affects
  daypart listening distribution and place of
  listening. At home listening is usually to one
  station. Out of home listening is to multiple
  stations. This means more of the listening
  reported is shared among more different stations,
  thus likely lowering the AQH for the average
  station.
• In reality, no radio station LOST listeners, no
  one really listened more or less than before the
  switch to PPM. Just the measurement system is
  different.
• So, in PPM, Reach goes up
• Diary reflected only about half of the number of
  people who actually tuned into a radio station in
  a given week.
• PPM reflects all the people who were exposed to
  the station, not just those who remembered to
  report their listening.
• Buying even a few Radio stations generates reach
  that actually surpasses newspapers, cable
  stations and even most TV stations.

5
The Longer They Listen, the More Likely They
Represent the Stations Target Listener
WMGK-FMClassic Rock
Composition
Source Arbitron, January 2007 PPM, Philadelphia
Metro, Persons 6.
6
Reaching More Comparison of Diary to PPM
Schedule
Diary
Winter 2007 Diary Persons 25-54
PPM
PPM November 2007 January 2008 Avg Persons
25-54
7
Cost Per Point Adjustment
Original buy with Diary
Original buy with PPM
8
AQH Rating Index PPM vs. Diary Note That Markets
Differ
Planning Guides Arbitron has created
Conversion Charts for each market
Index PPM v. Diary (AQH Ratings)
The conversion factors will change as markets
mature as PPM markets. Be prepared for change.
Rule of thumb if a schedule works for you
under Diary currency, keep it in place under PPM.
Just think of the lower TRPs as conversion to a
new currency.
1 PPM, New York, October 2007 vs. Fall 2006 Diary
(PPM reported stations) 2 PPM, Philadelphia,
March 2007 vs. Winter 2007 Diary 3 PPM,
Houston-Galveston, March 2007 vs. Winter 2006
Diary
9
Summary Diary vs. PPM
PPM
Diary

• Same people every week (avg. term 9 months, max 2
  yrs)
• 13 reports covering 52 weeks
• Metro only
• Persons 6, in or out of home listening
• Data recorded electronically, actual exposure
• Sports and events individually measurable
• Avg. PPM exposure is to 6 stations/week
• AQH Cume composition dissimilar
• PPM shows shorter TSL on more occasions
• 4 of diaries 100 QH to 1 station
• Core listeners 85 of AQH listening
• More AQH reported by
• Employed
• Hispanics and Blacks
• Males listen 30 more than females
• Listening is more equally distributed across
  dayparts, hours, days
• All software providers get RLD
• Re-tooled RF Model

• Different people every week
• 4 reports covering 48 week
• Metro, TSA, DMA
• Persons 12, 4 places of listening
• Data based on recall and hand-logging
• Sports and events seldom show up
• Avg. diary listening to 3.2 stations/wk
• AQH Cume composition similar
• Diary shows longer TSL/station
• 15 of diaries 100 QH to 1 station
• Core listeners 85 of AQH listening
• More AQH attributed to
• Unemployed
• Hispanics and Blacks
• Males slightly more than females
• AM drive disproportionately high listening
  reported
• RLD only on Maximizer/MediaPro
• Standard RF Model

Cannot develop ratings conversion charts until
PPM is live currency in the market
RLD Respondent Level Data