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Every year, Nielsen Audio updates the population estimates for all of their markets. These new population estimates will be seen in PPM markets with the October survey, diary CDM markets with the October (August-October) survey, and diary 2-book markets with the Fall survey.
Why are changes in your market’s population estimates important?
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Forget the Nielsen Audio estimates, you are losing cume every day. Sometimes, for reasons outside of your control, a certain portion of those who have tuned into your radio station in the past stop listening.
Why?
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The recent release of Edison Research’s Infinite Dial data supports what most radio professionals already know. An increasing number of radio listeners are accessing the medium through non-traditional means.
The study goes into great detail on how P1s of various formats are becoming increasingly dependent on the use of devices like smart speakers. This is even more pronounced along generational fault lines. The much-sought-after younger demos are, quite naturally, more tech savvy than their older counterparts. This shows that radio’s future is still bright with the digital natives.
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As we approach budget season, the usual arithmetic alchemy we use to predict the future has been rendered redundant. No one – and I mean no one – has any idea what to expect or predict for 2021.
Everything is clouded by the pandemic and the mixed messages we receive on how, if, or when it will end. We see this apply to radio listening. There has been no “V” shaped curve. It is more like a swoosh (Nike did not pay for that product placement). Cume is slowly trickling back while AWTE is well behind pre-pandemic levels.
Perhaps we can look across the Atlantic for a hint on what to expect in the future.
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Your and your station’s success are based in part on your AQH performance. It does not matter whether you are talking about rating, share, or rank – the goal is to grow your AQH audience. There are only two ways to impact AQH:
The job of every program director and every marketing dollar is to grow the station’s cume. The reality is that every station loses cume every day. Listeners may:
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When I started selling in 1981 (yikes, that is nearly four decades ago!), I was taught that radio sales people use GRPs (gross rating points) and CPP (cost per point) as our transactional currency. These numbers were hard to describe to anyone who was not used to buying broadcast media. Because rating points are based on the market’s population, it also made comparing rates across markets difficult.
As a young sales person, I had the nerve to ask about the system of using GRPs and CPP to sell radio. The answer was simple: “That is the way TV is sold, and therefore radio must follow’s TV’s lead. If we want to play on TV’s playing field, we must use GRPs.”
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We all know that every quarter-hour is precious.
Ever since PPM became currency, many broadcasters felt that listening on both the market and individual station levels was being underreported because PPM did not adequately capture headphone listening. While the PPM device comes with a headphone adapter, it is generally believed that most panelists don’t use it. In addition, some of the headphone usage is now wireless, which is not compatible with the adapter.
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How’s billing next month?
How’s billing next week?
How’s billing tomorrow?
For purposes often attributed to survival, radio station management takes a very short view when judging success or failure. As an industry, we are not alone in this myopic view. Most American businesses are taking the same approach.
While it is important to make next week or next month’s numbers, it is equally important to plan for the long-term future. Without doing this, one can win the battle and lose the war.
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The recent announcement of the partnership between LeadsRx and WideOrbit is a potential game-changer for radio.
The digital revolution in marketing has created a need for instant gratification with advertisers. Google Analytics, click-through rates, traffic sources, and other data sources have left radio advertising behind the curve.
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Recently we have been hearing about Procter & Gamble’s investment in radio advertising. Since making some initial ad buys, P&G’s use of radio has exploded.
Much, if not all, of this revenue has consisted of network buys. While that helps various networks, the revenue rarely trickles down to the local stations. It will not impact the billing and commission of most local station sales reps.
However, P&G’s radio expenditures can help a local sales rep boost their billing with new clients, especially those who have not previously taken advantage of the power of radio advertising.
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