We asked agency buyers yesterday what they thought about Arbitron's initial PPM data release for Philly (4/30/07 RBR #84).
The commentary continues today with Natalie Swed Stone, US Director, National Radio Investment, OMD, and Pat McNew, PHD EVP/Local Media Network (LMN) Director of Operations:
Any comments in general about the Philly PPM numbers coming out?
Said Swed Stone: "We will be looking at the results to determine how radio listening may differ from any previous assumptions-affecting reach/turnover/dayparts/commercials/formats, etc. More detailed and timely research will ultimately change the way programmers and broadcasters program their stations. We will expect to see changes in commercial positioning and other formatting changes on the heels of this type of research."
Will you be willing to bump up CPP to compensate for lower AQH numbers?
"We will still be working with individual station groups and networks. Each will have different results and we will negotiate from there. I don't think there will be any such bump all around."
What about the higher cume numbers they're saying are happening with PPM. How will that play into negotiations?
"Higher cumes will benefit individual stations as well as the medium since many media plans are crafted with reach as an important goal."
What about the rumors morning drive numbers are down with PPM? Will that have to affect pricing?
"There will always be a demand for AM drive-if it has the highest reach, then it will still be valued as prime radio. We will need to consider values for all dayparts and review assumptions based upon any new findings-perhaps there is an underutilized daypart as well. But not all stations are equal-if numbers are down, pricing will certainly be affected in some cases."
Any comments in general about the Philly PPM numbers?
Said McNew:
"Friday seemed to be the first "real day" we could actually look at the PPMs in earnest as this was the first day that Clear Channel was represented. Snap shot: Ratings down -- Cume up. My sources say stations and reps, if not in a panic mode, are at least confused with how to proceed with pricing. Current submissions with rates based on PPMs have seen CPP/CPMs jump. With current schedules on air we know we'll be under-delivered. The rest of this year will obviously be a learning year. One of the interesting sidebars with PPMs is that radio stations will now be held much more accountable for posts and schedule delivery."
Will you be willing to bump up CPP to compensate for lower AQH numbers?
"How much we are willing to bump CPP/CPMs really depends on planning and clients. Radio has traditionally had the reputation for low out of pocket costs but astronomical CPMs. The PPMs could put this phenomenon under even closer scrutiny."
