Wednesday, September 12, 2007

People Meter killed the radio star


Don't touch that dial. Arbitron is shaking up radio advertisers with its new Portable People Meter, a little device that actually measures what people really listen to vs. what they record in diaries. In test markets of Philly and Houston, the results were no surprise -- people skip around the dial more than previously recorded in journals, meaning many stations have bigger audiences who listen for briefer periods of time.

Toss that in your reach and frequency, and rankings change. Rock is up, urban down, men loom larger, women tune out, and overall GRPs are falling. Arbitron has responded with an ad campaign to media buyers saying 70 GRPs is the new 100.

We think the cold, hard truth is that consumers are switching stations more often than advertisers would like, and yes, during the commercial break. Radio is still huge, and the average U.S. consumer still listens to 3 hours a day. But to reach them, you need to plan smart -- drill in to the demo, pick the right formats and dayparts, and get creative with the mix, pulsing, and duration to grab the audience while they are listening. The People Meter will be in all Top 10 markets by end of 2008. Time to get a good GRP.

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