I’ve been reading the “back and forth” lately between Warren Kurtzman of Coleman Insights and others about chasing after PPM meters versus building your radio station’s brand. If you ask me which approach is better, my answer is “yes”.
It goes without saying that you need to build a brand. You can spend all you want on outside marketing (yes, I know that’s fantasy in 2023), but getting listeners to sample a poor or misrepresented product will usually result in failure.
If I read Warren’s piece correctly, he stressed the need for research backed up with external marketing. Hard to argue with that point even if you don’t have the budget to do it. And even though Warren is a Carolina Hurricanes fan, I respect his viewpoint.
That doesn’t mean you shouldn’t go after meters. John Snyder of Nielsen spoke with Inside Radio and showed that in the September monthly, 10% of the panelists accounted for 47% of the quarter hours.
Meanwhile, 13% of the panelists didn’t listen to radio at all. John knows his stuff and has done some unique analyses of PPM data over the years. If John says that’s what the data show, don’t argue.
However, you can ask questions about John’s assertions. PPM is a 6+ measure while the industry is still chasing persons 25-54, whether anyone likes it or not. If John re-ran his analysis looking at just 25-54, what would he find? And if the data were parsed by ten-year age cells (25-34, 35-44, and 45-54), what would the results show? Probably a similar outcome, but heavily biased to the upper end of the demo.
John offered some other insights in the graphic that Inside Radio published on November 10. A summary of it would suggest that in 2023, heavy radio listeners are more likely to be older males, work full time in a blue-collar profession making less than $100K per year, live alone or with one other person, and are more likely to be minorities, due to a greater propensity to live in a High-Density Black or Hispanic Area.
John also mentioned that these panelists are more likely to drive older American cars. Some years ago, he showed me a similar analysis which suggested that these are cars without modern infotainment systems. In other words, these panelists are far more dependent on OTA radio as a source of information and entertainment in their cars. Per S&P Global Mobility, we know that the average age of a vehicle on the road in the US is now 12.5 years or a 2010 or 2011 model.
Think back to that year and the options available to car buyers. Infotainment systems were just starting to take off although many car systems had a mini-jack that allowed you to plug in a phone or other device. That was before cell phone manufacturers decided to eliminate the mini plug output from their phones. One other note: 12.5 years is an average. That means there are plenty of cars and trucks from earlier model years that are still on US roads.
Given John’s analysis, let’s apply it to the fate of your stations. First, consider the total sample target for your market, which can be anywhere from just over 1,000 meters to a few thousand. Next, if you’re chasing the 25-54 demo like most everyone else in the market, do some division.
In general, the 25-54 population percentage of the market will run between 40 and 45% (check your E-Book for the exact percentage in your market). If your sample target is 1,500 meters, that means around 600 to 675 meters will be in the 25-54 demo.
Now, if 10% of those meters account for nearly half the listening, you’re now at 60-68 meters. How many competitive radio stations are in your market? That leaves only a few heavy meters for each station. If you look at your monthly CPR, you know that just a few meters can make or break your results.
That’s why the answer to the question of brand building or looking for meters is yes. Warren is correct about the importance of research, brand, and marketing.
However, John has reminded us of how fragile the grading system that defines success or failure really is, perhaps beyond what you imagined. Your station should be great but don’t stop chasing the meters. Let’s meet again next week.
