Bill Rose

For a company that, for all intents and purposes, owns the audio measurement space, Nielsen Audio has certainly not been resting on its laurels. On top of its never-ending quest of getting -and keeping - MRC accreditation for all of its PPM markets, Nielsen is continuing to remake its PPM as a wearable that is at once stylish, yet subtle, while maintaining its monitoring effectiveness ... and as technology continues to develop, find new and better ways to capture audio listening. Here, SVP/Client Solutions Bill Rose offers the latest developments in Nielsen's audio monitoring efforts.

Exactly when in PPM's development and/or rollout did and when did you assume oversight of it?

I have worked at Nielsen (and Arbitron before that) since 1981 and I was here at the very beginning of PPM's development and roll-out. There is no single person who has oversight of PPM. It really is a team effort involving many smart people with years of measurement experience.

What have been the main challenges in getting MRC accreditation and how did you overcome them?

Earning MRC accreditation is a high standard that involves a holistic approach to quality. We focus every day on maximizing the sample performance metrics, which include response rates, proportionality and in-tab rates. SPI is the response rate metric for panels. In essence, SPI is a measure of the percentage of the initially designated sample that agreed to participate and provided usable data on a daily basis. We also work hard on making sure the panel's composition mirrors the market's characteristics and we measure our performance with a metric called "proportionality." Finally, we concentrate on making sure that a high percentage of the panelists contribute data every day, which is called "In-tab rate." These are some of the KPIs (Key Performance Indicators) we concentrate on because they are important measures of panel quality.

Nielsen continues to innovate, test and implement actions focused on panel quality. Continuous improvement is key to meeting the high-quality standards that enable clients to rely on Nielsen as the trusted currency.

Any markets still in the process of MRC accreditation? If so, what kind of goals do you have to getting them, time-wise?

In PPM markets, Nielsen is currently accredited for Average Quarter Hour Monthly data for 30 markets. In Diary, Nielsen's Radio Market Reports are accredited in all markets, except Puerto Rico. Additionally, Nielsen's TapScan and PPM Analysis Tool software products are accredited. Nielsen continues to seek MRC accreditation across all PPM markets through an annual audit process. The following PPM markets are accredited by the MRC for Average Quarter-Hour Monthly data:

• Atlanta
• Baltimore
• Charlotte-Gastonia-Rock Hill
• Chicago
• Cincinnati
• Cleveland
• Columbus, OH
• Dallas-Ft. Worth
• Denver-Boulder
• Detroit
• Greensboro-Winston Salem-High Point
• Houston-Galveston
• Indianapolis
• Jacksonville
• Kansas City
• Los Angeles
• Miami-Ft. Lauderdale-Hollywood
• Milwaukee-Racine
• Minneapolis-St. Paul
• Nassau-Suffolk (Long Island)
• Philadelphia
• Phoenix
• Pittsburgh, PA
• Portland, OR
• Riverside-San Bernardino
• Salt Lake City-Ogden-Provo
• St. Louis
• San Antonio
• San Diego
• Tampa-St. Petersburg-Clearwater

How many PPM markets are MRC still not accredited - and do you spend more time on those without accreditation than on those that do?

Of the 48 PPM markets, 30 are accredited and 18 are not. We focus on all markets, not just those without MRC accreditation. We want to deliver quality panels and as I mentioned earlier, we have three panel performance metrics -- response rates, proportionality, and in-tab rates metrics, and our job is to maximize our performance across all three metrics.

When a market loses its accreditation, do you know exactly what you have to do to fix it? And how long would that take?

We focus on panel quality and what we can control. There is no time limit to regain accreditation. Ultimately, it's up to the MRC to determine which markets are accredited and part of their accreditation process is being involved with an audit from an independent organization that also looks at what we do. The MRC works with this independent auditor to make their own determination, and we go from there.

What has been the biggest obstacles to optimizing panelist compliance? Respondents failing to take it with them when they leave the house? Something else?

Ultimately, we want our panelists to carry the PPM with them from when they wake in the morning until they go to bed at night. Each meter has a green light that indicates whether the meter is in motion and we encourage the panelists to "keep the green light on" by carrying it with them through the day. We have a variety of ways to encourage panelist behavior. We monitor panelist compliance on a daily basis and panel relations specialists are in touch with our PPM homes to encourage them to carry their meters.

In addition, we have sweepstakes and contests to reinforce carry time and provide additional incentive and motivation. Our work pays off since more than 80% of the panelists comply with their carry requirements and are in-tab on a given day. This has improved over the years based on the experience we gained in working with hundreds of thousands of panelists since PPM's launch.

Radio stations obviously have a signal embedded in their programming. Is it possible to do that with streaming platforms such as Apple Music, Spotify, YouTube and Pandora? If so, is this something you are aggressively pursuing?

Our intent is to measure the total audio ecosystem, which includes broadcast radio, broadcast radio's digital streams, podcasts and streaming music services. For broadcast radio, we use the PPM technology and the diary. For digital measurement, we also leverage Nielsen's SDK (Software Development Kit). The SDK is a piece of software code from Nielsen that content providers and distributors place within their website media players and iOS (Apple) and Android smartphone apps. The SDK provides a census-based approach to measure digital content or ads and it is similar to what we use for digital video measurement.

Has the PPM undergone any technological changes over the years?

Yes! The current PPM is called PPM360, which is the current generation of the device. It has a more appealing form factor compared with the original PPM. Plus, it communicates data directly to Nielsen throughout the day via cell technology compared with the original version that required panelists to place the device in a docking station that would download the data once per day overnight using their telephone line. In addition, we upgraded the PPM encoding a few years ago with eCBET (Enhanced Critical Band Encoding Technology) that makes the PPM code easier to detect in more challenging acoustic environments such as high background noise. Finally, we introduced a new PPM encoding monitor for stations to see how the PPM encoder is working and provides enhanced encoding diagnostics.

What will the next generation of PPMs look like? Will it monitor airplay any differently?

We are working now on the next generation of PPM, which is a wearable device. The idea is to design an even more appealing PPM that people will wear on their wrist (or other means if that doesn't appeal to them). We have completed the design stage and developed prototypes that have been tested in the lab and on a limited basis with friends and family. In 2019, we will do more testing to see how panelists respond and what the listening is like. We're very excited about the PPM Wearable because we think it can generate improved compliance. It could also provide additional functionality via an accompanying smartphone app designed to deliver data to Nielsen, encourage compliance and gather anonymized information about mobile usage.

If all goes well, when would you hope to roll out the wearables?

Nothing would make me happier than to give you a date when we will launch PPM wearables but we're not at that point yet. The prototypes have undergone testing in the lab and with friends and family. However, we have more testing to do. Prior to making wearables part of the currency, we need to make sure we understand how panelists carry them, the ability of the devices to detect the PPM codes and ultimately what the listening looks like. Until we have these answers, we can't announce a rollout date.

How are you approaching the look of the wearables? Is it to make them stylish so they can complement a smartwatch of Fitbit? Or would you rather make them as inauspicious as possible?

We want the PPM wearable to be stylish enough to encourage panelists to wear them. However, we have to walk a fine line because we don't want them to stand out and be a walking advertisement that says, "I'm a Nielsen panelist."

I can say that the most popular design enables panelists to wear the new PPM on their wrist like a smartwatch or a Fitbit. However, we have other wear options, such as a clip-on for a belt, and a pendant. The key is to offer different choices because we can't assume that "one size fits all."

Besides a smartphone app, what about integrating into cars' music systems ... or smart speakers?

We have experience with PPM detection as part of smartphone apps and have designed working prototypes. Based on that experience, we believe there are a number of challenges with using only a PPM-enabled app to gather listening data. First, consumers are generally very protective about their mobile devices and their privacy and for these reasons, there will be challenges with getting a representative sample of users who agree to install the app. In addition, the PPM technology is built to maximize detection with high-quality acoustic microphones, while today's cellphone mics are built to filter out extraneous noise that could inhibit PPM code detection.

These challenges are likely to be surmountable with time, innovation and technology, but for now we believe that a purpose-built device designed specifically for media measurement is the best method for core measurement.

Nielsen acquired Gracenote, which is the leading provider of metadata for media content. They fuel the information on in-car infotainment systems that displays song info, album art, etc. In addition, Gracenote is the leading source for program information for cable systems and smart TV program guides. We are exploring embedding the PPM detection capability into in-car infotainment systems and other media devices that would be like "PPM on wheels." This is a complex project that would involve the cooperation of car manufacturers; it will take substantial time to design and implement since it needs to be installed in the infotainment firmware in new vehicles.

Finally, like our clients, we are encouraged about the potential of smart speakers because they provide a new and exciting way for consumers to listen to radio. The good news is that PPM can detect encoded audio that is played on smart speakers.

Obviously, PPM monitoring has long been thought of as being too expensive for medium and small markets. Could you envision a time when PPM monitoring could be made affordable to them?

We do not believe that PPM will be an affordable option for clients beyond the markets where it currently exists. However, we are very excited about a transformation of the Diary-based measurement called Continuous Diary Measurement starting next year. Ultimately, Continuous Diary Measurement will provide monthly reporting across all diary markets and give clients a quicker read on market changes. Continuous Diary Measurement is scheduled to begin in 47 markets currently measured four times a year starting in July of next year, when these markets will convert to monthly reports. We are actively planning the subsequent phases of Continuous Diary Measurement for the balance of markets and hope to have more news about timing in 2019.

When it comes to sample size, while many in radio want a bigger sample, it would incur a greater cost. Do you feel there's a comfort zone somewhere where you'll be able to increase the sample size and still make it affordable to your clients?

We agree that all things being equal, "bigger is better" when it comes to sample size, but there are limits to what our clients are willing to pay for. So we look to maximize the value of today's panel while searching for future options like integrating Big Data with our currency panels. When Big Data is calibrated with projectable currency grade panels, it has the potential to provide greater stability and granularity of reporting.

We have Big Data today in our TV service, which integrates cable set top box data with Nielsen meter data from our TV panels. We have learned a lot from our experience in TV and we would like to do the same thing with audio. However, there are no comparable sources of Big Data in radio today. That said, we're always searching for solid sources of Big Data that we could integrate with our audio panel. While we're not there today, we are hopeful this will ultimately bear fruit considering the pace of innovation and technology.

How quickly can a client get the data that shows listening levels during a specific daypart? Can you foresee real-time monitoring?

Clients get data every month and a subset gets weekly data so they don't have to wait 30 days to see what's going on with their station and competition. Some have asked if it's possible to get data the next day and we're looking at solutions for that. However, real-time reporting is not practical because sometimes panelists are not in locations where we can upload their data. In those cases we need to wait until they get to a location with cell coverage to get complete data about their listening.

Without divulging anything proprietary, where do you see PPM monitoring going in the future, in terms of the possibility of measuring engagement as well as just listening?

Today, Nielsen provides a variety of tools to help programmers understand how consumers use their brands. These tools include PD Advantage, weeklies data and the new Control Panel Reports. These tools provide granular information to help programmers uncover new insights about their audience. In addition, Media Monitors provides Audience Reaction and Mscore to understand the link between what happens on the air and panel behavior.

We are also very excited about new tools that link media exposure with consumer buying and shopping behavior to help show how radio can drive sales results. These tools include Nielsen Media Impact which is the industry's leading media planning tool. Nielsen audio data is now included in Media Impact and it can show advertisers how radio can boost their advertising results. Nielsen Buyer Insights links Nielsen data with anonymized credit card transactions and it can show how radio reaches key advertising targets beyond age/sex demographics.

Rhiza empowers salespeople to showcase the power of radio in easy to understand and visually compelling presentations that speak the language of local advertisers. Finally, Nielsen Audio data is now part of the Nielsen Marketing Cloud which is our fully-integrated platform that enables clients to manage every phase of the marketing process in a single place -- from media planning and activation to data management and attribution.