Moving Forward

Kochan & Company

PPM Shakes Up the Market

Oct 28th, 2009 • Category: Advertising Articles

There are some exciting changes in how radio ratings are now measured and reported. For more than 40 years diaries have been used to measure radio listening patterns. A new measurement tool called, Portable People Meters (PPM) have now taken the place of diaries. Rather than participants writing down what they heard, PPM records all radio listening. Diaries were released quarterly; PPM data is released monthly along with a holiday book. From a media buying perspective, this exciting step forward is bringing more accurate and accountable measurement to radio. PPM can determine what consumers listen to on the radio; what they watch on broadcast, cable and satellite TV; what media they stream on the internet; and what they hear in stores.

The Portable People Meters system consists of several components:
• Encoder, which is installed at the programming source. It picks up program material as it is broadcast.
• Station Monitor, which is installed at the programming source to make sure audio content, is encoded correctly.
• Portable People Meter, which is worn by consumers to pick up and record the radio stations that the consumer is exposed to. The PPM device is worn 8 hours each day.
• Base Station is where each participant places the meter at the end of the day to re charge the battery and send the collected codes to a household collection device known as the hub.
• Portable Recharger, which allows the PPM to store multiple days of media exposure
• Household Hub, which collects the codes from the base stations and sends them to Arbitron via the telephone during the overnight hours.

On October 8th the PPM data became currency, meaning that the audience estimates can be used for the buying and selling of radio advertising. We are now able to utilize the data from July, August and September.

This new ratings system has brought about a few local changes to the St. Louis radio market. The ARCH now holds the #1 spot in market share across various demographics. The new ratings system has forced stations to review their programming and also make changes to on-air personalities. As an agency, we are confident that this new technology will enable us to make media buys that will provide an even better return on investment for our clients.”

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Lisa Pavia is the Media Services Manager for Kochan & Company. Her responsibilities include negotiating; placing and monitoring media buys for various clients. While she enjoys all aspects of her job, Lisa's favorite part is working with local stations developing promotional opportunities to our clients. She joined the agency in 2006, after more than 10 years at the Coca Cola Company, managing media buys and marketing activities for Midwest markets. Outside of the office, Lisa spends time with her three daughters and always looks forward to a day at the wineries with friends.

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