Artwork for podcast Brandwidth On Demand
Nielsen Ratings: Are They Still the Gold Standard? Guest: Steve Allan - The Research Director, Inc.
Episode 1889th September 2023 • Brandwidth On Demand • David Martin & Kipper McGee
00:00:00 00:16:19

Shownotes

With over 25 years of radio experience, Steve Allen has programmed a variety of radio formats, with winning radio stations in Washington, DC, Boston, Detroit and Cincinnati, He has also held a number of corporate programming positions, and is now Programming Research Consultant for the Research Director, Inc.

Steve is a self-proclaimed 'data-geek' who is on the bleeding edge of the needs and challenges of programmers in today's radio/audio environment, and the best ways to crack the ratings code for measurement and performance.

In this episode, Steve shares some key points, including:

  • While radio is still the number one audio reach medium, listening is down overall, especially among younger people. What’s radio’s next move?
  • How the pandemic has impacted levels of radio listening.
  • Why ratings should be taken with a grain of salt in PPM and Diary markets.
  • What TLR is, and how it can impact perceived station impact and real revenues.
  • Are Podcasting and Streaming growing threats to traditional radio, or valuable complements to the station brand?

One Minute Martinizing by Dave Martin

Please help us thank these supporters:

Return to previous Brandwidth on Demand episodes

YES! Send me the free SHOW NOTES preview email

Transcripts

Steve:

The good news is that radio still is the number one audio reach medium.

2

:

Without question.

3

:

The challenges right now and

people using radio is down, I

4

:

mean up to 20% across the board.

5

:

Fewer people listening to radio and

we don't know if we're coming back.

6

:

Welcome to BRANDwidth On Demand,

your Guide to Rebooting Radio.

7

:

I kinda looked for two things.

8

:

How is Nielsen performing?

9

:

How's the sample doing?

10

:

'cause we always tell our clients,

you don't pay Nielsen for ratings.

11

:

You pay them for sample

12

:

VO: BRANDwidth on Demand.

13

:

Rebooting radio with a different

take on all radio can be.

14

:

Now your guides through the metamorphosis.

15

:

David Martin and author of

the book BRANDwidth, media

16

:

branding Coach Kipper McGee.

17

:

Dave: This time around, our guest brings

a wealth of programming experience to us.

18

:

He's programmed in Washington d C

Boston, Detroit, Cincinnati, and he's

19

:

held corporate programming positions

for A M F M and Clear Channel.

20

:

He's a self-described data geek and

understands the needs and challenges of

21

:

programmers In today's radio environment,

he serves as programming research

22

:

consultant for the research director Inc.

23

:

BRANDwidth On Demand is

proud to welcome Steve Allen.

24

:

Hey Steve.

25

:

Kipper: Hey, welcome.

26

:

Steve: Thanks for having me.

27

:

It's really nice.

28

:

I appreciate it.

29

:

Kipper: So today we're talking ratings

and to really take things to their core.

30

:

What do you see as the key performance

indicators, the KPIs that rating services

31

:

like Nielsen or Eastland provide?

32

:

And more importantly, what are the very

first things you look for when you're

33

:

checking out the performance of a client

station or even their competition?

34

:

Steve: Obviously ratings and ranking

and share and all that stuff is what

35

:

everybody looks at, but we peek under

the hood and I kinda look for two things.

36

:

How is Nielsen performing?

37

:

How's the sample doing?

38

:

'cause we always tell our clients,

you don't pay Nielsen for ratings.

39

:

You pay them for sample.

40

:

And if they are, supposed to give you

X number of meters or diaries, you

41

:

wanna make sure you hit that mark.

42

:

But even deeper than that, Nielsen does

a pretty good job on a six plus basis.

43

:

But you really wanna look

at your target demos.

44

:

So let's say you're targeting women

35, 44, and the index is, When

45

:

waiting kicks in, that can really

have an effect on your numbers.

46

:

And we see that happen all the time.

47

:

Beyond that, and that's one of

the services we provide is the

48

:

kind of like the ratings whisper.

49

:

But then beyond that there's, there

are certain things we like to look at.

50

:

How's your t s L compared

to the market, right?

51

:

If you have a good healthy market, P

S L, are you getting your fair share?

52

:

How are you doing on rotating people

through day parts and vertically and

53

:

horizontally recycling them, getting those

occasions and how obviously the, obviously

54

:

is how you're performing in your key

demographics and versus your competition.

55

:

But yeah some things beyond just,

AQH, TSL and Cume, can tell you

56

:

whether your station's doing well.

57

:

And on top of that I like

to take a longer view.

58

:

If you just look at one book, so many

things can happen in one book that you

59

:

really can't base it on, on, on one book.

60

:

You have to look at the longer trend.

61

:

And keep in mind that our, our

mantra is there are four things that

62

:

will affect your ratings, right?

63

:

Something you've done.

64

:

You change your music, change

your morning show whatever format,

65

:

something your competitor has done.

66

:

Same thing.

67

:

Something big has happened

in the marketplace.

68

:

Christmas music, the best example of that.

69

:

Orel, we so all those factors play

in to see how well you are doing.

70

:

And what do you look for

71

:

Dave: overall, Steve, when you're sitting

down with a client station and taking

72

:

a look at the the most recent full

quarter numbers what are you looking for

73

:

when you're looking at those numbers?

74

:

Steve: If we've been with them for a

while, we wanna see how the station's

75

:

trending and what their goals are.

76

:

What do they expect?

77

:

Is this a station that it's

expected to, be a top five

78

:

performer or is this a flaker?

79

:

They're just trying to hurt somebody else.

80

:

So it really depends on what the needs

are, and then we want to give them a

81

:

reality check on what's really happening

over time with their numbers in Nielsen.

82

:

Kipper: Steve, we're hearing lots about

the decrease in even demise of radio

83

:

as a distribution platform or device.

84

:

Which leads us to the question, what

trends are you seeing ratings wise in

85

:

the consumption of audio and especially

86

:

Steve: radio?

87

:

There's good news and there's bad news.

88

:

The good news is that radio

still is the number one audio

89

:

reach medium without question.

90

:

It gets everywhere.

91

:

And while we are not at the

levels we were, let's say 20 years

92

:

ago, it's still pretty robust.

93

:

The challenges right now and the

pandemic certainly accelerated.

94

:

This is home is down.

95

:

People using radio is down,

up to 20% across the board.

96

:

Fewer people listening to radio

and we don't know why, and we don't

97

:

know if they're coming back now.

98

:

Hybrid, right?

99

:

People are not in their car

as much as they used to be.

100

:

So if they're only working three days a

week versus five, that's potentially 40%

101

:

of their weekday listening has gone away.

102

:

There's certainly a demo problem.

103

:

Radio is increasingly an older medium.

104

:

Not unusual for markets to have

their median listening age, right

105

:

around 50 people under the age of 35.

106

:

Especially under the age of 24,

oftentimes don't even listen

107

:

to all radio for an hour a day.

108

:

So that radio does have a youth problem.

109

:

And the third thing, and I think,

we're gonna talk about digital

110

:

and stuff there's, there's a hefty

number, a percentage of the population

111

:

depending on the market that does

not even have a radio in their house.

112

:

And that sometimes could

be as high as 30, 35%.

113

:

At the same time, smart speaker

penetration, as we know, has leveled off.

114

:

Everybody bought one with the

pandemic and now they're like,

115

:

eh, do I really need Alexa?

116

:

But that's not even at 50%.

117

:

So the thought that Alexa would

replace your in-home radio,

118

:

it, there's some of that there.

119

:

Maybe the real opportunity for

radio is the mobile apps, right?

120

:

Because we know that basically

97% of people have a smartphone.

121

:

So if you're trying to reach people beyond

your stick, that's a good way to do it.

122

:

Kipper: One question that some of my

clients have been struggling with is the

123

:

idea of total line reporting, especially

versus splitting off their streams

124

:

for different commercials and whatnot.

125

:

So first, tell us about total

line reporting and for stations

126

:

that don't practice it.

127

:

Might that be impacting

128

:

Steve: their ratings?

129

:

No, not yet.

130

:

Nielsen the whole odd I, the idea

behind Nielsen one is to someday be

131

:

the, the one ring to rule 'em all right?

132

:

Where they, it's television, it's

digital, it's radio, it's everything.

133

:

And they could just sit there

and go, boom, here's your number.

134

:

They're not there yet.

135

:

They were close with a system called

s, I think SDK years ago, where

136

:

they were gonna encode every single.

137

:

Audio player on the internet.

138

:

But that fell through.

139

:

We're not sure why.

140

:

It's still the same thing we

dealt with for 20, 30, 40 years.

141

:

It's recall, it's, I

listen from nine to five.

142

:

No one listens from nine to five.

143

:

People have to go to the bathroom.

144

:

Know.

145

:

So it's you didn't see the decline in

listening and time spent listening as

146

:

much in diary markets as you have in P M.

147

:

And PPM is reality.

148

:

I'll say this, give Nielsen it to do, man.

149

:

The meter works.

150

:

It does a very accurate job, not

only of measuring what it hears,

151

:

but if you extrapolate from that,

it shows your listener behavior.

152

:

If you really dig into the numbers, you

can see, you get a better picture of

153

:

how people actually use the service.

154

:

And

155

:

Dave: Steve, what's your counsel to

stations on streaming and podcasting?

156

:

Steve: I, podcasting, eh, I think the

value for podcasting right now for

157

:

radio from a ratings perspective is

if you've got a, a big personality

158

:

and you can get somebody to listen

to their bits within, I think it's

159

:

24 hours, you'll get credit for it.

160

:

Otherwise it's a money play if

you can make money off of it.

161

:

Streaming, I will be upfront saying

that as a company, and we are big

162

:

believers in total line reporting.

163

:

That said, it's a

business decision, right?

164

:

'cause first off, if you're

gonna encode your stream, you

165

:

gotta pay an extra fee of Neil.

166

:

So there's a cost involved.

167

:

Secondly, if you can monetize your

stream at a higher rate than what

168

:

the stream numbers will help you.

169

:

Then by all means, do that.

170

:

And third, Nielsen does a awful

job and they've admitted it, of

171

:

recording, streaming on earbuds, right?

172

:

They have a headphone adjustment,

but there's no way they can

173

:

accurately reflect that.

174

:

We've looked at backend, server side

numbers from clients and the actual number

175

:

of listeners compared to what Nielsen

registers, it's, the gap is humongous.

176

:

That all said.

177

:

That if you are total line reporting and

let's say you are, your station's getting

178

:

a point, you're one of, eight stations

in the market with a 0.3 rating, right?

179

:

And we all know that's rounding, right?

180

:

That 0.3, somewhere between 0.250

and 0.349 that 0.3 may be a 0.340.

181

:

And you get an extra 200

aqh from your stream.

182

:

All of a sudden that 0.3 came becomes

a 0.4 and your sales manager realizes

183

:

that their rating has gone up 33%.

184

:

And in big markets, how

much is a point worth?

185

:

It's millions of dollars.

186

:

Okay,

187

:

Kipper: so one question that some

of my stations have had trouble

188

:

wrapping their head around at first

is the idea of total line reporting.

189

:

So first of all, can you tell

us what is total line reporting?

190

:

And then for stations that don't

practice it, what could be the impact?

191

:

Their ratings?

192

:

Steve: The start with p M is extremely

accurate in recording listening.

193

:

They, and I shouldn't say listening what

it hears technically, it's what it hears.

194

:

Very accurate of it.

195

:

Very precise in exactly how long someone

is tuned into a particular product.

196

:

Whereas diary is 100% recall and

we know from years of experience

197

:

that, some people fill it out at the

end of the day, but probably more

198

:

people out at the end of the week.

199

:

It's Thursday through Wednesday.

200

:

And so there.

201

:

I just ask anybody listening, sit

down tonight and reconstruct your

202

:

lunch menu for the last week.

203

:

And see if you could actually remember

exactly what you ate every day.

204

:

You probably can't.

205

:

But you wrote, you would

remember what you like to eat.

206

:

And I probably had a

ham sandwich on Tuesday.

207

:

It's the same way with diary, right?

208

:

It's like my favorite radio station is x.

209

:

So I know I listen to them and I

get to the office at nine and I

210

:

have them on at my desk until five.

211

:

And I don't take into account the

fact that I had a bathroom break,

212

:

three meetings and a phone call.

213

:

So you know, it over inflates the

listening and also the difference

214

:

between the two is that you underestimate

the number of stations you listen to.

215

:

Because all the meter has to do is

pick up five minutes of non-continuous

216

:

listening in a quarter hour to

give you credit for a station.

217

:

So if you know you go into the

deli for lunch and they're playing

218

:

another station that you never

listened to, but you're standing

219

:

in line for 10 minutes, guess what?

220

:

You're now in their queue.

221

:

Oh yeah.

222

:

The other thing is sample, right?

223

:

P M is panel based, so it's

to:

224

:

or whatever your market size is.

225

:

People every single day.

226

:

Every week of the pa every day

of the 28 day survey for diary.

227

:

It's an entirely new sample every week.

228

:

And especially if you're in a continuous

diary measurement market and you're

229

:

looking at three book average at 36

weeks, that's 36 different samples where,

230

:

now there's a yin and the yang to that.

231

:

The good news for the diary people is

that if they didn't find your people

232

:

in week one, they might find them in.

233

:

The problem with the P M

sample is households can be

234

:

locked in for up to two years.

235

:

And if all of a sudden and you

see this a lot like the Christian

236

:

contemporary stations where they'll

get a couple of heavy households and

237

:

all of a sudden they're a top five

station for a year, and then those two

238

:

households leave and they drop to eight.

239

:

And we see that with formats.

240

:

Formats go hot and cold based on

a lot of times on panel because

241

:

there's not enough of that particular

format's fan base in the sample.

242

:

Yeah.

243

:

Dave: Our guest is Steve Allen,

the Nielsen Audio Whisperer and

244

:

Programming research consultant

for the Research Director, Inc.

245

:

We've got links to the research director

and some info you may not have seen plus

246

:

Steve's blog and more just scroll down

247

:

Kipper: And we'd appreciate it.

248

:

If you do us a favor, just pass this

podcast along to other people in your

249

:

company or your circle of radio friends.

250

:

Our mission is to help you level up

your game by hearing from the top

251

:

media thought leaders like Steve.

252

:

On air hosts, program directors,

and others that you usually only

253

:

see at a conference or convention.

254

:

Dave: Yeah, think of BRANDwidth On

Demand as your unconventional convention.

255

:

Episodes of about 15 minutes

at a time, on demand.

256

:

Coming up.

257

:

Steve shares some of the

best advice he's ever gotten.

258

:

Spot: Hi, this is Dave Tyler from

Musicmaster Scheduling, here with

259

:

another Musicmaster Raving fan.

260

:

Hi, I'm jeff McCarthy, Vice

President of Programming for Duke

261

:

Wright's Midwest Communications.

262

:

Why do we succeed?

263

:

Using Musicmaster for over 30 years!

264

:

There now you know our secret.

265

:

Ready to become a Musicmaster raving fan?

266

:

Get in touch@musicmaster.com slash sales.

267

:

Kipper: Hey, there.

268

:

Kipper here.

269

:

If your station is so many others,

begging out for some sort of station

270

:

merchandise for sale or even to give

away, but the budget says Uhuh, your

271

:

solution could be just a click away.

272

:

Check out radio swag shop.

273

:

It's in the show notes or simply go

to radio swag shop.com/kipper, your

274

:

audience and your budget will thank you.

275

:

VO: Listen today, lead

tomorrow BRANDwidth on Demand.

276

:

Dave: We're with Steve Allen,

the go-to data guy for us.

277

:

He's the programming research consultant

for the Research Director Inc.

278

:

Hey, Steve, what's the best piece of

advice that you were given in your

279

:

career so far, either in your PD days or

now, and then what one piece of advice

280

:

would you give to someone in charge of

brand management or programming today?

281

:

Steve: I can't think of a specific

moment where someone said, do this right.

282

:

I can recall early in my career when

I got my first big break on the air,

283

:

it was a W Light in Washington dc.

284

:

I was a night guy and Bob Hughes

was the program director Bob Hughes.

285

:

Just a brilliant programming mind.

286

:

And Bob, I would come in early often

and Bob would stay late often, and

287

:

we would just sit in his office.

288

:

I'm just some schmuck kid, that's

just started, doing full-time there.

289

:

And we would play the what if game.

290

:

What if, whether it was music scheduling

or promotions or songs or whatever, most

291

:

of it didn't get done but his willingness

to sit there and banter back and forth

292

:

with me and just, actually care what I

thought and entertain the ideas really

293

:

opened up a lot of doors for me mentally.

294

:

And I think I tried to carry that through.

295

:

My programming career, and even now

it's let's talk about what we could do.

296

:

And so that was the most valuable

thing that I can remember early on

297

:

that really influenced what I did

as far as the advice I would give.

298

:

Now, if you're managing talent, which

brand managers are, and operations

299

:

director, you're managing talent, you

really have to manage to those people.

300

:

They're a different breed.

301

:

And they, they you could joke that

it's like herding cats, but they're

302

:

all individuals and you want that.

303

:

You wanna enhance that individuality

and you want to, you wanna

304

:

really manage to your people.

305

:

There is no such thing as one size

fits all in creative management.

306

:

Some of your people need to be

coddled, some need to be cajoled,

307

:

some to be challenged, some need

to be the left alone, right?

308

:

I think as a manager, it's

your job to figure out what.

309

:

Buttons to push or not to push

on your people, put them in

310

:

the best position to succeed.

311

:

Dave: Great advice.

312

:

Our thanks to Steve Allen, links to his

website, some great articles and more

313

:

all in our regular show notes email.

314

:

We send it out before every

episode and you can easily get it.

315

:

Just scroll down on your

phone for a free subscription.

316

:

Kipper: We'd like to thank

our exec producer Cindy Huber

317

:

for putting this together.

318

:

Also, associate producer

Hannah B for booking.

319

:

And coming up next...

320

:

Holland: News will be

the Savior of News Talk.

321

:

I'm Holland Cooke and in the next

BRANDwidth On Demand, we all know it.

322

:

Political talk changes.

323

:

No mind.

324

:

You already know today what they're

gonna say 'cause they said it yesterday.

325

:

But the news is changing from moment to

moment and I will tell you three ways

326

:

to make your newscast instantly better.

327

:

Dave: That's a wrap Kipper.

328

:

One of the secrets of

success is endurance.

329

:

We'll talk about it in one minute.

330

:

Martinizing.

331

:

Find it in show notes at

BRANDwidth On Demand.com.

332

:

I'm Dave Martin.

333

:

Kipper: And I'm Kipper McGee.

334

:

May all your BRANDwidth be WIDE!.

Chapters

Video

More from YouTube