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Radio Workshop Radio 101

Radio Workshop Radio 101. 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 Workshop Radio 101

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  1. Radio Workshop Radio 101

  2. 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.

  3. Arbitron - Sampling • Each survey period (book) is 12 weeks long, hence the reason for 4 books a year- Fall, Winter, Spring & Summer. • 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 • 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.

  4. Arbitron – The Diary 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. 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. In the back of the diary, respondents are asked to provide their age, sex, employment status, city, county and zip code. Space is also provided for diarykeepers to write comments about specific stations in their market. Arbitron has recently added some additional questions on… Income Education Children Household Size

  5. Arbitron - Processing The Diaries As diaries are returned to Arbitron, they are electronically scanned into computers. Diaries are rejected if: • Postmarked or received before the last day 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 age or sex (or race, if applicable). 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, Age/Sex, Race/Ethnicity.

  6. Arbitron - Special Survey Procedures Arbitron has implemented special survey procedures called DifferentialSurvey Treatments (DST) in order to maximize participation by demographic groups which have a historical pattern of being underrepresented in surveys. 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 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 HAVE • At least 150,000 Black or Hispanic Persons 12+

  7. 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.

  8. Arbitron - Listening Estimates 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

  9. AQH RTG = AQH Persons Population X 100 AQH SHR = AQH Persons PUR X 100 Average Quarter Hour (AQH) Average Quarter Hour Persons (AQH) - are the average number of people tuning into a station for at least 5 minutes during a 15 minute period. Average Quarter Hour Rating (AQH) - is the AQH Persons expressed as a percentage of the population. The A18-34 Population is 1,172,700 WBBB’s A18-34 AQH Persons: 17,600 WBBB’s A18-34 AQH RTG is 1.5 Average Quarter Hour Share (SHR) - is the AQH Persons expressed as a percentage of the Persons Using Radio (PUR). The A18-34 PUR is 217,900 WBBB’s AQH Persons: 17,600 WBBB’s AQH SHR is 8.1

  10. Cume RTG = Cume Persons Population X 100 Cume Cume - is the total number of Different people who tune into a station for at least 5 minutes during a daypart. Cume is also known as Reach. Cume Rating - is the cume persons expressed as a percentage of the population. The A18-34 Population is 1,172,700 WBBB’s A18-34 Cume Persons: 206,300 WBBB’s Cume RTG is 17.6 Exclusive Cume - the number of Cume listeners who listen only to that station and no others during a specific daypart.

  11. Time Spent Listening Time Spent Listening(TSL) - is the estimated number of quarter hours the average person listens to a station during a daypart. TSL = AQH Persons x # of quarter hours in daypart Cume M-Sun 6a-12m - 504 Quarter Hours WBBB’s AQH Persons: 17,600 WBBB’s Cume is 206,300 WBBB’s TSL is 42.99 quarter-hours To express TSL in Hours:Minutes divide the result by 4 (4 quarter hours in an hour). The numbers following the decimal point must be multiplied by 60 to determine minutes. 42.99 = 10.748 hours 4 .748 x 60 = 44.8 minutes TSL = 10:45

  12. 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 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

  13. Cost Per Rating Point (CPP) Cost Per Rating Point (CPP) - calculates the cost of each GRP. CPP = Total Cost of Schedule Total GRPs 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 = $600 $2350 - Total Cost $2350 26.5 GRPs = $88.68 CPP

  14. Gross Impressions (GI) Gross Impressions (GI) - are the sum of AQH persons for a spot schedule. GI = AQH Persons x # of spots 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 Remember Gross Impressions represent the total number of times a spot will be heard - NOT the number of persons that will hear it.

  15. CPM = Total Cost of Schedule GI X 1000 $2350 310,200 X 1000 = 7.58 Cost Per Thousand (CPM) Cost Per Thousand (CPM) - gives the cost of each 1000 impressions a schedule delivers. Total Schedule Cost: $2350 Total GI: 310,200 Cost Per Thousand - $7.58 CPM

  16. Frequency = GI Reach (Raw Number) (Reach is Cume) Frequency = GRP Reach (RTG) (Reach RTG is Cume RTG) 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 interchangeable terms. While they express the same concept, the difference lies in usage: Cumeusually means 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. Reach or Cume RTG = 11.8 26.5 = 2.2 Frequency 11.8 GRPs = 26.5

  17. 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.

  18. 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 Mid Way Point 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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