Ppm how to measure radio effectively
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PPM – how to measure radio effectively. SEMPL 2008. Today’s agenda. Some financial facts From Average Quarter Hour to minute-by-minute Ratings Changing the Price of Radio Advertising Managing the Inventory Future possibilities. Ad Spending.

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Ppm how to measure radio effectively

PPM – how to measure radio effectively

SEMPL 2008


Today s agenda

Today’s agenda

Some financial facts

From Average Quarter Hour to minute-by-minute Ratings

Changing the Price of Radio Advertising

Managing the Inventory

Future possibilities


Ad spending

Ad Spending

”Radio had the largest growth (23,9%) Year-On-Year”

Share of Market Q2 2008

Source: IRM


In 2005 the cpt on radio was 52 nok in 2008 it is 108 tv is 200

In 2005 the CPT on radio was 52 NOK.In 2008 it is 108! TV is 200

2006 - 261 million NOK through media agencies

2008 - 360 million NOK!

P4 breaks advertising-records


Radio is taking larger share from the advertisers

Radio is taking larger share from the advertisers


Ppm how to measure radio effectively

Radio is still optimistic for the future


Ppm how to measure radio effectively

The Portable People Meter system – PPM

http://ppm.arbitron.com/


Issues

Issues

  • Editing rules

  • Panel size

    • Small stations require larger panel

    • More detailed breakdowns require larger panel

    • Panelists must comply

  • Software and reporting


Advantages with ppm

Advantages with PPM

  • Daily updated audience measurement

  • More accurate method -> more confidence in radio

  • Very similar method to TV (in Norway at least)

    ...but it is expensive...


A brief overview

A Brief Overview

National Radio

Commercial Radio

Market Share: Q3 2008

Market Share: Q3 2008

Source: TNS Gallup, National PPM Radio Survey


Higher reach with same definition

Higher Reach With Same Definition:

Average weekday 2007

AQH PPM vs. AQH CATI

10:00

18:00

14:00


Big difference 15 min cume to 1 min net

Big Difference: 15 min. cume to 1 min. net:

Average weekday 2007

AQH PPM vs. AQH CATI

10:00

18:00

14:00


How did we set the price of 1 grp

How did we set the price of 1 GRP?

Put 1 spot in every hour, every day, for a week = 162 spots

Value with spot pricing: 1 200 000 NOK

PPM 1 min. definition  315 GRP*

Result: CPT increased by 32%

1 200 000 NOK

315 GRP

= 3810 Cost Per Point

* Used April/May 2006 average


Challenges

Challenges:

Estimating future ratings

Predicting inventory and sold-out ratio

Over- and Under-delivery

Most of the salesforce had little knowledge of the new rating currency

Tighter control

Increase Traffic function

Handling a decline in ratings (shortage of inventory)

Changing the placement of a block

Solutions:


Detailed reports of a campaigns performance

Detailed reports of a campaigns performance:

Simple overview


Planning split analysis 3

Planning & Split Analysis (3+)

  • Scenarios:

  • 100% P4

  • 80% P4, 10% K24, 10% SBS

  • 60% P4, 10% K24, 30% SBS


Single source planning

Single-Source Planning

Reach (%)

Frequency

Source: PPM Radio & TV test-data, TNS Gallup


To sum up

To sum up...

Radio has had an amazing growth in advertising turnover after the introduction of PPM as the currency

Radio advertisement has become more precise

You can report and you radiodata in your trackingstudies

Better utilization of inventory (resources)

Reach goes slightly up, frequency down

Single-Source Radio/TV-planning is next!


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