Nielsen’s recently announced intention to change the formula for quarter-hour credit for stations in Portable People Meter markets — changing the required listening time from five to three minutes to gain AQH credit — would potentially impact listening trends and AM/FM radio’s effectiveness as an ad medium, according to an analysis of Nielsen data in Westwood One’s weekly blog.
Based on estimates using Nielsen impact data from May 2024, listener increases via the proposed change would, for one, widen or accelerate AM/FM radio’s lead over live + time-shifted TV in key demographics. The current 12% ratings edge over TV among persons 18-49 would jump to 47%, while its persons 25-54 average audience of AM/FM as a percent of linear TV would move from the minus to the plus column, from 88% to 113%, surpassing TV for the first time.
According to Nielsen, PPM markets can expect up to a 24% lift in audience deliveries based on prior year schedules — with time spent listening up 19% and cume up 4% — and with greater growth among younger demos.
“For local buys, outcomes will vary by demographic, markets utilized, and AM/FM radio programming format mix, [while] for total U.S. media plans using Nielsen’s nationwide survey, deliveries will grow by 10%,” Cumulus Media/Westwood One Audio Active Group Chief Insights Officer Pierre Bouvard says. “Differences will result due to the mix of diary versus PPM market composition in network lineups as well as AM/FM radio programming format mix.”
Resulting from these greater gains in listening among persons 18-34 and 18-49, younger-skewing formats such as Spanish Tropical, Hot AC, Rhythmic CHR and Urban Contemporary will display the greatest potential average quarter-hour audience growth, given Nielsen’s adjustment.
A move from a five- to a three-minute quarter hour qualification could pave the way for increasing the effectiveness of AM/FM radio ads, as stations may be encouraged to create more and shorter stopsets per hour. Results of a PPM study conducted by Nielsen, Media Monitors, and Coleman Research of nearly 18 million unique commercial breaks involving close to 62 million minutes of advertising show that the shorter the break, the greater the audience retention.
“This will significantly benefit advertisers,” Bouvard says. “Since the introduction of the Portable Meter, most AM/FM radio stations schedule their two commercial breaks around :15 and :45 past the hour. This strategy was designed to maximize five-minute listening durations. Creating more ad breaks of shorter duration generates larger commercial audiences. Advertisers stand out more in shorter breaks. Growing audience deliveries for AM/FM radio ads improves marketing effectiveness and grows sales effect.”
Additionally, the change should also positively impact reach growth in advertising schedules, with daily and weekly reach growth expected to increase 7% and 4%, respectively. Bouvard notes, “Since reach is the foundation of advertising effectiveness, this will benefit marketers’ sales growth.”
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