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RAB: PPM Could Raise Radio Revenue

RAB: PPM Could Raise Radio Revenue

The RAB and Arbitron are seeking to put some research weight behind the arguments for the PPM.
Stations will see substantial revenue growth if they switch to the Arbitron Portable People Meter method of measuring audience, and continuing to use paper diaries could mean a drop in radio dollars – so says the Radio Advertising Bureau, based on an economic impact study by Forrester Research that was funded by Arbitron.
When the PPM platform is deployed, that could mean annual net radio revenues $696 million higher than with the current diary method, according to results released by the RAB.
“Of nearly 500 advertising decision makers surveyed, one in four indicated they would change their spending patterns with the implementation of a ratings system that is better and more reliable than the diary,” stated consultant David Pearlman, who spearheaded the project.
He said the study also demonstrates that if the current PPM test results on daypart consumption continue with a drop in morning drive listening, the dollar difference would be made up in other dayparts that would see spending rise.
RAB President/CEO Gary Fries said the study verifies that advertisers and agencies want a change to a more reliable measurement platform. Yet radio needs to understand the findings to understand both the advantages and disadvantages of switching to PPM, he said.
The study is at click here.