Forrester picked for PPM economic study
Forrester Research has been selected to conduct a study into how switching to Arbiton's Portable People Meter (PPM) would impact the radio business economically. The research study is being funded by Arbitron, but Forrester's bid was selected by a special committee of the Radio Advertising Bureau's PPM Task Force.
Dave Pearlman, President of Pearlman Advisors, who is consulting the RAB's PPM Task Force, told RBR that Forrester was picked from a number of world-class research firms who submitted bids. The firm is well-known for its research studies on the economic impact of new technologies and also has some past experience in the media area.
"The study will provide clarity on the economic effects of the PPM by examining both the risks and opportunities of electronic measurement on the radio business," said RAB president Gary Fries. He added that it will also consider the consequences to radio of not going to electronic measurement.
Pearlman says Forrester will be conducting marketplace interviews at the advertiser level and the agency level, along with input from broadcasters. "It's a very deep sample that they've proposed," he said. Forrester will then apply statistical modeling to that research to project how radio revenues will likely be impacted if the industry goes to PPM for ratings - - and also the likely impact of not making the transition to electronic measurement. Beyond just revenues, Pearlman says the study may offer conclusions about how PPM may impact industry practices, such as how advertising is bought and sold, and may even extend to PPM's potential impact on programming decisions.
If all goes as planned, results should be presented to the RAB's PPM Task Force in early 2005. No one is saying just how much Arbitron is paying for this study, which had been a key demand of its radio clients, but Pearlman says "it's a very expensive study to be done."
RBR observation:
wAlthough Arbitron has promised to give radio broadcasters some idea by the end of this year just what PPM ratings are likely to cost (10/7/04 RBR Daily Epaper #196), that's only one part of the equation. This study will hopefully fill in a few other variables and answer important questions about how PPM will affect spot pricing and ad buying. Advertisers and agencies are insisting on ROI and accountability - - and if they don't get it from radio they're going to focus more of their dollars elsewhere. Electronic measurement, quicker data availability and more detailed ratings data are just a few of the things they are after. We've heard it time and again from the advertisers and agencies - - they want PPM as fast as possible and they want radio groups to stop dragging their feet. If you have problems with PPM, you'd better start working on how to fix them, or find an alternative electronic measurement system that's better, because the people who buy ads on your stations aren't willing to deal with paper diaries for another decade.
Are you reading this from a forwarded email?
