Radio 101:

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Radio 101 Terms Definitions
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Arbitron - The Market
Each Arbitron market is comprised of three parts
MSA, DMA TSA. These areas are composed of
sampling units. A sampling unit generally
consists of a single county, but may also consist
of an independent city or a split county.
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Arbitron Diary Sampling

• Arbitron surveys some markets four times per
  year (Winter, Spring, Summer Fall) and some
  markets twice per year (Spring Fall). Each
  survey period (or book) is 12 weeks long.
• Arbitron uses a random digital dial technique to
  select potential diary keepers. For each 12 week
  survey period, a new sample of telephone numbers
  is randomly selected by computer.
• Arbitrons first contact with a listed sample
  household is generally a postcard, alerting the
• participant that a telephone interviewer will be
  calling soon with more information.
• Arbitron then makes a Placement Call. The
  purpose of the Placement Call is to determine the
  eligibility of the sample household, to gain
  acceptance of the diaries and to elicit
  information necessary to initiate any applicable
  special survey procedures.
• Based on information collected during the
  Placement Call, diaries are mailed to all persons
  12 in consenting households along with cash
  premiums.
• After the diaries are mailed, Arbitron makes a
  Follow-Up-Call - to verify receipt of diaries,
  reminder of importance of diaries, answer any
  questions, remind them when to return their
  diaries and thank them for participating in the
  survey.
• Follow-Up-Letter - On 1st day of the survey,
  Thank You extra 1.

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Arbitron - The Diary
The seven day period begins on Thursday and the
open-ended format of the day pages allows
diarykeepers to record the essential details of
each radio listening occasion start and stop
times, station identifier(s), AM/FM indicator(s)
and listening location(s) or to check a box which
indicates that they did not listen to radio that
particular day.
The Arbitron radio survey is a pre alerted,
telephone-placed mail survey. The survey
instrument, Arbitrons seven-day radio listening
diary, is self-administered and designed to be
personally maintained by all individuals 12 yrs
of age and older in each sample household, up to
a maximum of nine persons.
In the back of the diary, respondents are asked
to provide demographic information such as age,
sex, employment status, city, county and zip
code. Qualitative information on income,
education, children in household and household
size is also requested. Space is also provided
for diary keepers to write comments about
specific stations in their market.
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The Arbitron Diary Sample Page
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Arbitron - Processing The Diaries

• As diaries are returned to Arbitron, they are
  electronically scanned into computers for
  processing.
• Diaries are rejected if
• Postmarked prior to Tuesday of the survey week.
• Received after the designated survey week cutoff
  date.
• Incomplete or blank.
• Respondent under 12 years of age.
• Kept by a person outside of the sampled
  household.
• Respondent resides outside of a survey area.
• Missing standard demographic information. If
  information can be obtained via callback then
  diary can still be deemed useable.
• Arbitron then weights returned diaries using a
  Marginal Weighting method. Marginal weighting
  means that in-tab diaries are weighted to
  represent the current, estimated population for
  each specified marginal class.
• Geography (County)
• Age/Sex
• Race/Ethnicity
• Dominant Language (where applicable)

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Arbitron - Special Survey Procedures
Arbitron has implemented special survey
procedures called Differential Survey Treatments
(DST) in order to maximize participation by
demographic groups which have a historical
pattern of being underrepresented in surveys,
such as M18-24, M25-34, Black
and Hispanic. The ultimate goal of these
procedures is to produce a final
in-tab sample which reflects, as closely as
possible, the
characteristics of the market being measured.

• Differential Survey Treatments (DST) get..
• Higher premiums and additional follow-up calls,
  based on the respondents
• answer to the age, race and/or Hispanic
  ethnicity question at placement, plus
• bilingual (Spanish/English) survey materials
  for Hispanic DST.
• Eligibility for the establishment of
  High-Density Black Areas (HDBAs) and/or
• High-Density Hispanic Areas (HDHAs) in Metro
  counties and split counties.
• Black and/or Hispanic weighting of the returned
  sample for Market Report
• processing.

• In order to qualify for ethnic controls, the
  Metro Persons 12 estimated
• population must be
• At least 10 Black or Hispanic
• OR
• At least 75,000 and at least 5 Black or
  Hispanic Persons 12

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Arbitron - High Density Areas (HDAs)
High Density Areas are zip code defined sampling
areas which are established in a county or split
county within the Metro of an ethnic-controlled
market. HDAs allow for sample planning at a more
discrete level than the whole or split county.
All counties and split counties in
ethnic-controlled Metros are reviewed annually
for possible HDA qualification.

• HDA Qualification Criteria
• High-Density Black Area -- HDBA
• The county must have one or more zip codes which
  are at least 35 Black.
• The proposed HDBA (i.e. the 35 or higher zips,
  taken together) and the
• proposed Balance portions of the county must
  have sufficient population, as a
• proportion of the total Metro, to be allocated
  an in-tab target of at least 21 diaries.
• An HDBA will be retained as long as the target
  for each portion of the county is
• at least 18 diaries.

• High-Density Hispanic Area -- HDHA
• The county must have one or more zip codes which
  are at least 25 Hispanic.
• The proposed HDHA (i.e., the 25 or higher zips,
  taken together) and the
• proposed Balance portions of the county must
  have sufficient population, as a
• proportion of the total Metro, to be allocated
  an in-tab target of at least 21 diaries.
• An HDHA will be retained as long as the target
  for each portion of the county is
• at least 18 diaries.

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About the Portable People Meter
The Arbitron Portable People Meter (PPM) system,
which has been in market trials in the United
States since 2001, uses a passive audience
measurement device about the size of a small
cell phone to track consumer exposure to media
and entertainment, including broadcast, cable and
satellite television terrestrial, satellite and
online radio as well as cinema advertising and
many types of place-based electronic media.
Carried throughout the day by randomly selected
survey participants, the PPM device can track
when and where they watch television, listen to
radio as well as how they interact with other
forms of media and entertainment. Arbitron began
PPM measurement with Philadelphia in March 2007
and will rollout the top 50 markets by the end of
2010 Arbitron will produce thirteen 1 month PPM
survey periods (12 month holiday report), and
52 weekly reports will be released during the
year. Recruiting is based on land-line and cell
phone households
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Benefits of the Portable People Meter

• Arbitron believes that the introduction of the
  Portable People Meter will offer significant and
  immediate advantages to local market radio
  broadcasters and their advertisers including
• Faster and more frequent delivery of ratings
  reports
• Better insights into how people listen to radio
• More reliable measures of the total audience
  reached by a radio stationthe PPM indicates that
  a typical radio station often reaches twice as
  many listeners compared to current measures of
  the audience
• Additional sales opportunities for stations
  through better measures of the audience to
  special programming events and during evenings or
  weekends
• More stable audience trends with far less
  bounce from one report to the next
• The ability to report all of radios new
  distribution methods HD Radio, Internet
  streaming, digital multicasts, podcasting and
  others

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Arbitron Portable People Meter (PPM)
The PPM detects inaudible codes embedded in the
audio portion of media and entertainment content
delivered by broadcasters, content providers and
distributors. At the end of the day, the meter is
placed in a docking station that extracts the
codes and sends them to a central computer. The
PPM is equipped with a motion sensor, a patented
quality control feature unique to the system,
which allows Arbitron to confirm the compliance
of the PPM survey participants every day.
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Radio Terms Definitions

• Average Quarter Hour (AQH)
• Average Quarter Hour Rating (RTG)
• Average Quarter Hour Share (SHR)
• Cume
• Cume Rating
• Exclusive Cume
• Time Spent Listening (TSL)
• Gross Rating Points (GRPs)
• Cost Per Point (CPP)
• Gross Impressions (GIs)
• Cost Per Thousand (CPM)
• Reach Frequency

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The Arbitron Numbers
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There are two basic building blocks to radio
listening Cume and Time Spent Listening (TSL).
Together, these two blocks create Average
Quarter-Hour (AQH) audience estimates. Let's
illustrate this using an example of Sunshine
Chicken fast-food chain.
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Cume and Average Quarter-Hour Persons
Imagine that the Sunshine Chicken fast-food chain
has hired you to keep track of the floor traffic
at the Main Street location.
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Cume and Average Quarter-Hour Persons What are
Cume and Average Quarter-Hour Persons?
You begin tracking at 800 A.M. when two men walk
into the restaurant, order breakfast, and sit at
a table.
Enter two persons on the left side of your
clipboard.
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At 815 AM
You poke your head inside to count the number of
people in the restaurant. Only the two men who
entered at 800 AM are there.
Enter two persons on the right side of your
clipboard under 800-815 AM
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At 825 AM
A van pulls in with six college students. They
also order breakfast. It takes them 10 minutes to
order and carry out their food.
Enter the six students on the left side of your
clipboard.
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At 830 AM
When you poke your head in, the two men are still
at their table and the six college students are
in line waiting for their food.
Enter the eight persons on the right side of your
clipboard under 815-830 AM
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At 840 AM
The two men sitting at the table leave. A couple
comes in and orders breakfast. It takes them at
least five minutes to get their order. They're
preparing to leave when you make your 845 AM
quarter-hour count.
Add the couple to the left side of the clipboard
and right side under 830 -845 AM
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Let's get ready to check our results

• The different people have walked into the
  restaurant during our survey represent your Cume
  Persons.
• In each 15-minute time period - or quarter-hour
  there are different numbers of people in the
  restaurant.
• To find the average number of customers in the
  restaurant at any given time between 8AM and
  845AM, take the total number of people in each
  quarter-hour count and divide that number by the
  number of quarter-hours between 8AM and 845AM.
  This gives you the Average Quarter-Hour Persons.

Let's look at our clipboard
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OK. Now look at your clipboard to figure out the
Cume and Average Quarter-Hour persons for the
Sunshine Chicken example
By totaling the left side of the clipboard, you
can see that a total of 10 different people
entered the restaurant between 800 AM and 845
AM.
Again, this represents Cume Persons
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Now, to determine the Average Quarter-Hour
Persons
Add up the total number of people in each
quarter-hour count on the right side of the
clipboard (28212) and divide that by the
number of quarter-hours between 800 AM and 845
AM (3 quarter-hours). The average number of
people in Sunshine Chicken at any given time
between 8AM and 845AM is 4.
2 8 2 12 / 3 4
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Time Spent Listening
With Sunshine Chicken, what's the difference
between Cume and AQH Persons? Well, some radio
stations are similar to fast-food
restaurants Low Time Spent Eating." Some
restaurants, such as McDonald's, Burger King,
Taco Bell, and Sunshine Chicken have low Time
Spent Eating. That's why they're commonly
referred to as fast-food restaurants. In other
words, they have lots of different people coming
in who don't stay for very long. For example,
some radio station formats typically have lots of
different people tuning in (higher Cumes) and the
people don't listen for very long (lower Time
Spent Listening - TSL). Examples News/TalkCHR
(Top 40)
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Some restaurants, like steakhouses, have high
Time Spent Eating.

• These restaurants are commonly referred to as
  sit-down restaurants. They make their money on
  fewer different people coming in (Cume), but
  those people tend to stay longer (High Time Spent
  Eating).
• Again, some radio stations are similar to these
  sit-down restaurants.
• For example, some radio station formats typically
  have fewer people tuning in (lower Cumes) but
  those people tend to listen for longer periods
  of time (high TSL).
• Urban
• Classical

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Your Basic Radio Ranker
Average Quarter Hour Average of people that
listen to a radio station for at least 5 minutes
during a 15 minute time period or the average
of people who will hear a spot airing on a radio
station. AQH Rating Average Quarter Hour Persons
divided by the population. AQH Share Average
Quarter Hour persons expressed as a percentage of
People Listening to Radio. A stations share of
the radio listening pie.
Urban Strength in AQH....look at WHQT whose rank
goes from 7 in Cume to 2 in AQH.
CHR Strength in Cume....look at WHYI whose rank
goes from 6 in AQH to 2 in Cume.
Cume Persons The of different people that
listen to a radio station for at least 5 minutes
during the course of a daypart. A stations
unduplicated audience. Cume Rating Cume Persons
divided by the population... of people reached
by the radio station.
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Gross Rating Points (GRPs)
Gross Rating Points (GRPs) - are the total number
of rating points a spot schedule will deliver.
GRPs AQH Rating x of spots
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Cost Per Rating Point (CPP)
Cost Per Rating Point (CPP) - calculates the cost
of each GRP.
CPP Total Cost of Schedule
Total GRPs
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Gross Impressions (GI)
Gross Impressions (GI) - are the sum of AQH
persons for a spot schedule.
GI AQH Persons x of spots
Remember Gross Impressions represent the total
number of times a spot will be heard - NOT the
number of persons that will hear it.
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Cost Per Thousand (CPM)
Cost Per Thousand (CPM) - gives the cost of each
1000 impressions a schedule delivers.
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Reach Frequency
Reach - identifies the estimated number of
different (unduplicated) people reached by a spot
schedule. Reach can be expressed either as a raw
number or as a rating. Often Reach and Cume are
used as inter-changeable terms. While they
express the same concept, the difference lies in
usage Cume means the total audience of a
station. Reach is used to mean the amount of that
stations cume that is reached by an advertising
schedule.
Frequency - is the average number of times the
unduplicated person will hear an advertising
message.
Frequency Gross Impressions
Net Reach (Raw Number)
Frequency Total GRPS
Reach
GRPs 26.5
26.5 2.2 Frequency 11.8
Reach 11.8
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Effective Reach Frequency
To Reach a target is not enough. What is
important is to reach the consumer enough times
to make an IMPACT and generate a RESPONSE.
Effective Reach is defined as the of the market
that receives the advertisers message a
sufficient of times to be motivated to buy a
product, service or idea.
Effective Frequency is the actual number of times
a consumer must receive a message to be motivated.
The industry standard is a 3 Frequency and a 50
Reach.
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Reading a Basic Radio Schedule

• AQH Rating. The average number of people that
  listen to a radio station, expressed as a of
  the population. 1.1 of A18-49 listen to WHYI
  Mon-Fri 6a-10a.
• AQH Persons. The average number of people that
  listen to a radio station for at least 5 minutes
  during a 15 minute time period. An average of
  21,300 A18-49 listen to WHYI Mon-Fri 6a-10a, or
  an average of 21,300 A18-49 will hear a
  commercial on WHYI in AM drive.
• Gross Impressions. The total of times a spot
  will be heard, not the number of people. The sum
  of the AQH Persons based on a spot schedule.
  Formula AQH Audience x of spots. 21,300 x 6
  127,800 Gross Impressions WHYI will deliver in
  AM Drive.
• GRPs (Gross Rating Points). The total of
  rating points a spot schedule will deliver.
  Formula AQH Rating x spots. 1.1 x 6 6.6
  GRPs. WHYI will deliver 6.6 GRPs/Points in AM
  Drive.
• CPP (Cost Per Point). Calculates the cost of
  each GRP. Formula Total Cost of Schedule/Total
  GRPs 9,000/20.4 441 CPP. WHYI will come in
  at a 441 CPP.
• Reach. The estimated number of different
  (unduplicated) people reached by an advertising
  schedule. This is different from a stations
  cume which is the total of different people a
  station reaches regardless of a schedule. WHYI
  will reach 175,200 A18-49 based on this 18 spot
  schedule.
• Reach . The of the population the station
  will reach based on the schedule. Formula
  Reach/Population. WHYI will reach 9.3 of A18-49
  based on this schedule.
• Frequency. The average of times a person will
  be exposed to an advertising message. Based on
  this schedule A18-49 will hear the advertisers
  commercial an average of 2.2 times. Formula
  Gross Imp./Reach. 382,200/175,200 2.2.

An effective schedule yields a frequency of
3. First Exposure Who Is It? Second Exposure
What Of It? Third Exposure Ill Buy It!
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Multi-Week Schedules
Over multiple weeks, different stations build
Reach and Frequency at different rates...
A strong Cume station such as CHR WXXL builds
Reach much more quickly than other stations when
equal spot levels are used over a 6 week period.
A strong AQH station such as Urban WCFB builds
Frequency much more quickly than other stations
when equal spot levels are used over a 6 week
period.
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Misc. Terms
1st Preference Listening (P1) - are the number of
listeners who tune into a station for more
quarter hours than on any other station. (All
Exclusive Listeners are P1 Listeners, BUT NOT all
P1 Listeners are Exclusive Listeners)
Median Age - the age where half of a stations
listeners are older and half are younger. It is
the midpoint of a stations audience.
Duplication - is the amount of audience that
listens to both station A and station B.
Turnover - is the number of times the AQH
audience of a station completely regenerates
itself. In other words, the number of times the
audience TURNS OVER during a given time period.
Turnover is the converse of TSL...the longer the
TSL, the lower the turnover.