PPM Is A Problem For Younger Formats …

There’s not a day goes by that someone from radio asks or complains about Nielsen Audios PPM (Portable People Meter). The person asking is usually a programmer of a younger targeted format. It's no secret that over the last year or so, that Top 40 Mainstream, Top 40 Rhythmic, and Urban Mainstream stations have been ratings-challenged way too much. Meanwhile older targeted formats have flourished.

The Only Thing I Can Do …
The best I can do for one of these programmers is to give them a historical perspective on PPM. By the end of a conversation, whoever I'm talking to usually says, "When are they going to fix it?” Unfortunately, the answer is the same as when the new system was first put into place in the 2000s. It's about sample size, how panels are chosen, and the adjustments applied to come up with the rating for a market. I’ll let you be a fly on the wall for a transcribed conversation I had with a programmer to write this week’s column.

PD: I just don't get it, on our weekly conference calls the other PDs are all taking hits too, we're all programming the same formats. Every month we just don't know. What am I missing with PPM?

Coach: Panel sizes and methodology questions have always been a problem going back to when it was Arbitron's problem. In 2009, Senators Daniel Inouye (HI), Patrick Leahy (VT), Dick Durbin (IL), and President-Elect Barack Obama sent letters to Arbitron, stating displeasure with PPM. All four wanted assurances the new system would not adversely affect any radio station. In fact, the New York City Council voted unanimously to request that the Federal Communications Commission investigate PPM and the potential effects on the diversity of radio.

PD: Really.

Coach: Yes, and eventually Arbitron agreed to settlements with the states of New York and New Jersey. Both agreements included cash, adjustments in panelist selection recruitment, increases in cell phone only household selection, and promises of increased efforts for accurate measurement. To read more click here.

PD: I see what you mean, it's still the same, but now it's Nielsen and not Arbitron.

Coach: Whether its PPM sampling problems due to supply chain issues, or depleted sample because of less commuters that drive radio listening, radio is suffering from less in-tab meters, as well as a lifestyle problem without real time measurement of headphone/earbud listening.

PD: I haven't heard anything about it being addressed. I've heard rumors that some of the companies, like iHeart, have privately been holding some discussions over some of the issues with Nielsen, but I'm not hearing about anything being done. What have you heard?

Coach: I'm in the same boat as you and when I talk to people in the know, they are saying the same things you just said. What I do know is this. In the Fall of 2021 Nielsen radio and National TV services accreditation was suspended by MRC (Media Rating Council). It was supposed to allow the companies to fix some of the problems. The PPM wearables rolled out in the Spring of 2022 to increase in-tab rates. It has not been a success. That was followed by a Fall announcement that Nielsen was approved by shareholders to be sold to a private equity consortium headed by Elliott management group's Evergreen Coast Capital Corp. and Brookfield business partners.

PD: If this helps get PPM fixed, then I'm all for it.

Coach: Hold your horses. Remember Gordon Gekko in the movie “Wall Street?” He was a private equity guy. His famous quote from that movie, “greed is good?” That’s private equity.

PD: Where are you going with this?

Coach: Private equity companies tweak what they buy to make them more profitable so they can sell it for even more profit in a few years. Draw your own conclusions. For more about private equity companies, click here.

PD: It sounds like you're saying that it’s going to cost radio companies and stations even more money.

Coach: Yep, you got it. The fixes probably won’t come out of the pocket of the private equity owned Nielsen.

PD: We never talked about the new listening habits of my younger demo.

Coach: I'll finish by saying this. Listening with younger demos has changed. They have included other audio sources in their lifestyle to enjoy their music. However, the exposure that is being done is not being captured and it's all based on lifestyle listening habits for many of the younger demos. AirPods, earbuds, and headphones can't pick up exposure to a terrestrial station that is on an app. Notice I used the word exposure because the wearable meters pick up the inaudible encoded that’s transmitted by station. And yes, there is a calculation based on recall that is applied from the previous year’s panelists. But let’s not go down that rabbit hole, because that fix needs more tweaking.

PD: Thanks for your time.

Coach: No problem, I'll give you a call if I hear of any changes that might work in your favor. Just keep marketing your station and hopefully you'll get one of those super panelists that does nothing but stay on your station for hours at a time.