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Radio 101: Terms & Definitions The MSA: - Metro Survey Area – Arbitron Radio Metros generally correspond with the Federal government’s Office of Management and Budget’s (OMB) Metropolitan Areas. MSA can be changed, but require Arbitron subscriber approval.

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Radio 101: Terms & Definitions

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Radio 101:

Terms & Definitions


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The MSA: -Metro Survey Area – Arbitron Radio Metros generally correspond with the Federal government’s Office of Management and Budget’s (OMB) Metropolitan Areas. MSA can be changed, but require Arbitron subscriber approval.

The DMA: - Designated Marketing Area - Arbitron’s DMAs are defined and updated by Nielsen. Arbitron measures radio listening estimates for the top 50 DMAs.

The TSA: - Total Survey Area - Arbitron’s TSA is designed to provide a comprehensive measuring of listening to Metro-licensed radio stations. The TSA is composed of the Metro and any additional counties (or geographically split counties) which meet certain criteria for inclusion.

Arbitron - The Market

Each Arbitron market is comprised of three parts: MSA, DMA & TSA. These areas are composed of sampling units. A sampling unit generally consists of a single county, but may also consist of an independent city or a split county.


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Arbitron– DiarySampling

  • Arbitron surveys some markets four times per year (Winter, Spring, Summer & Fall) and some markets twice per year (Spring & Fall). Each survey period (or book) is 12 weeks long.

  • Arbitron uses a random digital dial technique to select potential diary keepers. For each 12 week survey period, a new sample of telephone numbers is randomly selected by computer.

  • Arbitron’s first contact with a listed sample household is generally a postcard, alerting the

  • participant that a telephone interviewer will be calling soon with more information.

  • Arbitron then makes a “Placement Call”. The purpose of the Placement Call is to determine the eligibility of the sample household, to gain acceptance of the diaries and to elicit information necessary to initiate any applicable special survey procedures.

  • Based on information collected during the Placement Call, diaries are mailed to all persons 12+ in consenting households along with cash premiums.

  • After the diaries are mailed, Arbitron makes a “Follow-Up-Call” - to verify receipt of diaries, reminder of importance of diaries, answer any questions, remind them when to return their diaries and thank them for participating in the survey.

  • Follow-Up-Letter - On 1st day of the survey, “Thank You” & extra $1.


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Arbitron- The Diary

The seven day period begins on Thursday and the open-ended format of the day pages allows diarykeepers to record the essential details of each radio listening occasion: start and stop times, station identifier(s), AM/FM indicator(s) and listening location(s) or to check a box which indicates that they did not listen to radio that particular day.

The Arbitron radio survey is a pre alerted, telephone-placed mail survey. The survey instrument, Arbitron’s seven-day radio listening diary, is self-administered and designed to be personally maintained by all individuals 12 yrs of age and older in each sample household, up to a maximum of nine persons.

In the back of the diary, respondents are asked to provide demographic information such as age, sex, employment status, city, county and zip code. Qualitative information on income, education, children in household and household size is also requested. Space is also provided for diary keepers to write comments about specific stations in their market.


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The Arbitron Diary – Sample Page


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Arbitron - Processing The Diaries

  • As diaries are returned to Arbitron, they are electronically scanned into computers for processing.

    Diaries are rejected if:

    • Postmarked prior to Tuesday of the survey week.

    • Received after the designated survey week cutoff date.

    • Incomplete or blank.

    • Respondent under 12 years of age.

    • Kept by a person outside of the sampled household.

    • Respondent resides outside of a survey area.

    • Missing standard demographic information. If information can be obtained via callback then diary can still be deemed useable.

  • Arbitron then weights returned diaries using a Marginal Weighting method. Marginal weighting means that in-tab diaries are weighted to represent the current, estimated population for each specified marginal class.

    • Geography (County)

    • Age/Sex

    • Race/Ethnicity

    • Dominant Language (where applicable)


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Arbitron- Special Survey Procedures

Arbitron has implemented special survey procedures called Differential Survey

Treatments (DST) in order to maximize participation by demographic groups

which have a historical pattern of being underrepresented in surveys, such as M18-24, M25-34, Black and Hispanic. The ultimate goal of these procedures is to produce a final in-tab sample which reflects, as closely as possible, the characteristics of the market being measured.

Differential Survey Treatments (DST) get…..

  • Higher premiums and additional follow-up calls, based on the respondent’s

    answer to the age, race and/or Hispanic ethnicity question at placement, plus

    bilingual (Spanish/English) survey materials for Hispanic DST.

  • Eligibility for the establishment of High-Density Black Areas (HDBAs) and/or

    High-Density Hispanic Areas (HDHAs) in Metro counties and split counties.

  • Black and/or Hispanic weighting of the returned sample for Market Report

  • processing.

  • In order to qualify for ethnic controls, the Metro Persons 12+ estimated

  • population must be:

  • At least 10% Black or Hispanic

  • OR

  • At least 75,000 and at least 5% Black or Hispanic Persons 12+


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Arbitron- High Density Areas (HDAs)

High Density Areas are zip code defined sampling areas which are established in a

county or split county within the Metro of an ethnic-controlled market. HDA’s allow for sample planning at a more discrete level than the whole or split county. All counties and split counties in ethnic-controlled Metros are reviewed annually for possible HDA qualification.

  • HDA Qualification Criteria:

  • High-Density Black Area -- HDBA

  • The county must have one or more zip codes which are at least 35% Black.

  • The proposed HDBA (i.e. the 35% or higher zips, taken together) and the

  • proposed Balance portions of the county must have sufficient population, as a

  • proportion of the total Metro, to be allocated an in-tab target of at least 21 diaries.

  • An HDBA will be retained as long as the target for each portion of the county is

  • at least 18 diaries.

  • High-Density Hispanic Area -- HDHA

  • The county must have one or more zip codes which are at least 25% Hispanic.

  • The proposed HDHA (i.e., the 25% or higher zips, taken together) and the

  • proposed Balance portions of the county must have sufficient population, as a

  • proportion of the total Metro, to be allocated an in-tab target of at least 21 diaries.

  • An HDHA will be retained as long as the target for each portion of the county is

  • at least 18 diaries.


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About the Portable People Meter

The Arbitron Portable People Meter (PPM) system, which has been in market trials in the United States since 2001, uses a passive audience measurement device – about the size of a small cell phone – to track consumer exposure to media and entertainment, including broadcast, cable and satellite television; terrestrial, satellite and online radio as well as cinema advertising and many types of place-based electronic media. Carried throughout the day by randomly selected survey participants, the PPM device can track when and where they watch television, listen to radio as well as how they interact with other forms of media and entertainment.

Arbitron began PPM measurement with Philadelphia in March 2007 and will rollout the top 50 markets by the end of 2010

Arbitron will produce thirteen 1 month PPM survey periods (12 month + holiday report), and 52 weekly reports will be released during the year. Recruiting is based on land-line and cell phone households


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Benefits of the Portable People Meter

  • Arbitron believes that the introduction of the Portable People Meter will offer significant and immediate advantages to local market radio broadcasters and their advertisers including:

  • Faster and more frequent delivery of ratings reports

  • Better insights into how people listen to radio

  • More reliable measures of the total audience reached by a radio station—the PPM indicates that a typical radio station often reaches twice as many listeners compared to current measures of the audience

  • Additional sales opportunities for stations through better measures of the audience to special programming events and during evenings or weekends

  • More stable audience trends with far less “bounce” from one report to the next

  • The ability to report all of radio’s new distribution methods: HD Radio, Internet streaming, digital multicasts, podcasting and others


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Arbitron – Portable People Meter (PPM)

The PPM detects inaudible codes embedded in the audio portion of media and entertainment content delivered by broadcasters, content providers and distributors. At the end of the day, the meter is placed in a docking station that extracts the codes and sends them to a central computer. The PPM is equipped with a motion sensor, a patented quality control feature unique to the system, which allows Arbitron to confirm the compliance of the PPM survey participants every day.


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Radio – Terms & Definitions

  • Average Quarter Hour (AQH)

  • Average Quarter Hour Rating (RTG)

  • Average Quarter Hour Share (SHR)

  • Cume

  • Cume Rating

  • Exclusive Cume

  • Time Spent Listening (TSL)

  • Gross Rating Points (GRPs)

  • Cost Per Point (CPP)

  • Gross Impressions (GIs)

  • Cost Per Thousand (CPM)

  • Reach & Frequency


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The Arbitron Numbers


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There are two basic building blocks to radio listening: Cume and Time Spent Listening (TSL).

Together, these two blocks create Average Quarter-Hour (AQH) audience estimates. Let's illustrate this using an example of Sunshine Chicken fast-food chain.


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Cume and Average Quarter-Hour Persons

Imagine that the Sunshine Chicken fast-food chain has hired you to keep track of the floor traffic at the Main Street location.


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Cume and Average Quarter-Hour Persons

What are Cume and Average Quarter-Hour Persons?

You begin tracking at 8:00 A.M. when two men walk into the restaurant, order breakfast, and sit at a table.

Enter two persons on the left side of your clipboard.


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At 8:15 AM…

You poke your head inside to count the number of people in the restaurant. Only the two men who entered at 8:00 AM are there.

Enter two persons on the right side of your clipboard under 8:00-8:15 AM


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At 8:25 AM…

A van pulls in with six college students. They also order breakfast. It takes them 10 minutes to order and carry out their food.

Enter the six students on the left side of your clipboard.


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At 8:30 AM…

When you poke your head in, the two men are still at their table and the six college students are in line waiting for their food.

Enter the eight persons on the right side of your clipboard under 8:15-8:30 AM


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At 8:40 AM…

The two men sitting at the table leave. A couple comes in and orders breakfast. It takes them at least five minutes to get their order. They're preparing to leave when you make your 8:45 AM quarter-hour count.

Add the couple to the left side of the clipboard and right side under 8:30 -8:45 AM


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Let's get ready to check our results…

  • The different people have walked into the restaurant during our survey represent your Cume Persons.

  • In each 15-minute time period - or quarter-hour – there are different numbers of people in the restaurant.

  • To find the average number of customers in the restaurant at any given time between 8AM and 8:45AM, take the total number of people in each quarter-hour count and divide that number by the number of quarter-hours between 8AM and 8:45AM. This gives you the Average Quarter-Hour Persons.

Let's look at our clipboard…


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OK. Now look at your clipboard to figure out the Cume and Average Quarter-Hour persons for the Sunshine Chicken example:

By totaling the left side of the clipboard, you can see that a total of 10 different people entered the restaurant between 8:00 AM and 8:45 AM.

Again, this represents Cume Persons


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Now, to determine the Average Quarter-Hour Persons…

Add up the total number of people in each quarter-hour count on the right side of the clipboard (2+8+2=12) and divide that by the number of quarter-hours between 8:00 AM and 8:45 AM (3 quarter-hours). The average number of people in Sunshine Chicken at any given time between 8AM and 8:45AM is 4.

2 + 8 + 2 =12 / 3 = 4


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Time Spent Listening

With Sunshine Chicken, what's the difference between Cume and AQH Persons?

Well, some radio stations are similar to fast-food restaurants…

“Low Time Spent Eating."

Some restaurants, such as McDonald's, Burger King, Taco Bell, andSunshine Chicken have low Time Spent Eating. That's why they're commonly referred to as fast-food restaurants. In other words, they have lots of different people coming in who don't stay for very long.

For example, some radio station formats typically have lots of different people tuning in (higher Cumes) and the people don't listen for very long (lower Time Spent Listening - TSL). Examples:

•News/Talk•CHR (Top 40)


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Some restaurants, like steakhouses, have high “Time Spent Eating”.

  • These restaurants are commonly referred to as sit-down restaurants. They make their money on fewer different people coming in (Cume), but those people tend to stay longer (High Time Spent Eating).

  • Again, some radio stations are similar to these sit-down restaurants.

  • For example, some radio station formats typically have fewer people tuning in (lower Cumes) but those people tend to listen for longer periods of time (high TSL).

    • Urban

    • Classical


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Your Basic Radio Ranker

Average Quarter Hour

Average # of people that listen to a radio station for at least 5 minutes during a 15 minute time period or the average # of people who will hear a spot airing on a radio station.

AQH Rating

Average Quarter Hour Persons divided by the population.

AQH Share

Average Quarter Hour persons expressed as a percentage of People Listening to Radio. A station’s share of the radio listening pie.

Urban Strength in AQH....look at WHQT whose rank goes from #7 in Cume to #2 in AQH.

CHR Strength in Cume....look at WHYI whose rank goes from #6 in AQH to #2 in Cume.

Cume Persons

The # of different people that listen to a radio station for at least 5 minutes during the course of a daypart. A station’s unduplicated audience.

Cume Rating

Cume Persons divided by the population...% of people reached by the radio station.


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DaypartRTG# Spots

M-F 6a-10a 2.5 3

M-F 10-3p 1.4 3

M-F 3p-7p 1.6 3

Sat 10a-3p 2.5 4

GRPs

= 7.5

= 4.2

= 4.8

= 10.0

26.5 - Total GRPs

Gross Rating Points (GRPs)

Gross Rating Points (GRPs) - are the total number of rating points a spot schedule will deliver.

GRP’s = AQH Rating x # of spots


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DaypartCost# Spots

M-F 6a-10a$200 3

M-F 10-3p$150 3

M-F 3p-7p$200 3

Sat 10a-3p$175 4

Cost

= $600

= $450

= $600

= $700

$2350 - Total Cost

$2350

26.5 GRPs

=

$88.68 CPP

Cost Per Rating Point (CPP)

Cost Per Rating Point (CPP) - calculates the cost of each GRP.

CPP = Total Cost of Schedule

Total GRPs


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DaypartAQH# Spots

M-F 6a-10a 29,700 3

M-F 10-3p 17,000 3

M-F 3p-7p 18,300 3

Sat 10a-3p 28,800 4

GI

= 89,100

= 51,000

= 54,900

= 115,200

310,200 - Total GI

Gross Impressions (GI)

Gross Impressions (GI) - are the sum of AQH persons for a spot schedule.

GI = AQH Persons x # of spots

Remember Gross Impressions represent the total number of times a spot will be heard - NOT the number of persons that will hear it.


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CPM = Total Cost of Schedule

GI

X 1000

Total Schedule Cost: $2350

Total GI: 310,200

$2350

310,200

X 1000 = 7.58

Cost Per Thousand - $7.58 CPM

Cost Per Thousand (CPM)

Cost Per Thousand (CPM) - gives the cost of each 1000 impressions a schedule delivers.


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Reach & Frequency

Reach - identifies the estimated number of different (unduplicated) people reached by a spot schedule. Reach can be expressed either as a raw number or as a rating. Often Reach and Cume are used as inter-changeable terms. While they express the same concept, the difference lies in usage:

Cumemeans the total audience of a station.

Reach is used to mean the amount of that station’s cume that is reached by an advertising schedule.

Frequency - is the average number of times the unduplicated person will hear an advertising message.

Frequency = Gross Impressions

Net Reach (Raw Number)

Frequency = Total GRPS

Reach %

GRPs = 26.5

26.5 = 2.2 Frequency

11.8

Reach %= 11.8


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Effective Reach & Frequency

To Reach a target is not enough. What is important is to reach the consumer enough times to make an IMPACT and generate a RESPONSE.

Effective Reach is defined as the % of the market that receives the advertiser’s message a sufficient # of times to be motivated to buy a product, service or idea.

Effective Frequency is the actual number of times a consumer must receive a message to be motivated.

The industry standard is a 3 Frequency and a 50% Reach.


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Reading a Basic Radio Schedule

  • AQH Rating. The average number of people that listen to a radio station, expressed as a % of the population. 1.1% of A18-49 listen to WHYI Mon-Fri 6a-10a.

  • AQH Persons. The average number of people that listen to a radio station for at least 5 minutes during a 15 minute time period. An average of 21,300 A18-49 listen to WHYI Mon-Fri 6a-10a, or an average of 21,300 A18-49 will hear a commercial on WHYI in AM drive.

  • Gross Impressions. The total # of times a spot will be heard, not the number of people. The sum of the AQH Persons based on a spot schedule. Formula – AQH Audience x # of spots. 21,300 x 6 = 127,800 Gross Impressions WHYI will deliver in AM Drive.

  • GRP’s (Gross Rating Points). The total # of rating points a spot schedule will deliver. Formula – AQH Rating x # spots. 1.1 x 6 = 6.6 GRP’s. WHYI will deliver 6.6 GRP’s/Points in AM Drive.

  • CPP (Cost Per Point). Calculates the cost of each GRP. Formula – Total Cost of Schedule/Total GRP’s $9,000/20.4 = $441 CPP. WHYI will come in at a $441 CPP.

  • Reach. The estimated number of different (unduplicated) people reached by an advertising schedule. This is different from a station’s cume which is the total # of different people a station reaches regardless of a schedule. WHYI will reach 175,200 A18-49 based on this 18 spot schedule.

  • Reach %. The % of the population the station will reach based on the schedule. Formula – Reach/Population. WHYI will reach 9.3% of A18-49 based on this schedule.

  • Frequency. The average # of times a person will be exposed to an advertising message. Based on this schedule A18-49 will hear the advertiser’s commercial an average of 2.2 times. Formula – Gross Imp./Reach. 382,200/175,200 = 2.2.

An effective schedule yields a frequency of 3.

First Exposure – Who Is It? Second Exposure – What Of It? Third Exposure – I’ll Buy It!


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Multi-Week Schedules

Over multiple weeks, different stations build Reach and Frequency at different rates...

A strong Cume station such as CHR WXXL builds Reach much more quickly than other stations when equal spot levels are used over a 6 week period.

A strong AQH station such as Urban WCFB builds Frequency much more quickly than other stations when equal spot levels are used over a 6 week period.


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Misc. Terms

1st Preference Listening (P1) - are the number of listeners who tune into a station for more quarter hours than on any other station. (All Exclusive Listeners are P1 Listeners, BUT NOT all P1 Listeners are Exclusive Listeners)

Median Age - the age where half of a station’s listeners are older and half are younger. It is the “midpoint” of a station’s audience.

Duplication - is the amount of audience that listens to both station “A” and station “B”.

Turnover - is the number of times the AQH audience of a station completely regenerates itself. In other words, the number of times the audience TURNS OVER during a given time period. Turnover is the converse of TSL...the longer the TSL, the lower the turnover.


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