This document summarizes a presentation given by Tony Hereau from Arbitron about the transition from diary-based radio ratings to portable people meter (PPM)-based ratings. It discusses key differences between the two measurement systems, insights from PPM data in markets that have transitioned, and plans for launching PPM measurement in New York. The presentation covers changes like higher cume but lower ratings seen in PPM data, guidelines for using pre-currency PPM data, and the timeline for transitioning major markets to PPM.

1. © 2006 Arbitron Inc.
ARF Audio Council
Panel Discussion
Tony Hereau
Arbitron PPM Implementation Team
October 30, 2007

2. © 2006 Arbitron Inc.
Our Agenda For Today
The Switch to Electronic Measurement
High-level Data Insights
Planning & Buying in a PPM World
New York and Beyond

3. © 2006 Arbitron Inc.
The Most Tested and Deployed
Electronic Measurement System
for Radio in the World

4. © 2006 Arbitron Inc.
The Switch To Electronic
Measurement
►The differences between the diary and
PPM are really the differences between
Perceptual Measurement (Diary) and
Behavior Measurement (PPM).
►Another electronic measurement system
would show the same thing.
►15 years of development and now it is use
in over 20 counties worldwide

5. © 2006 Arbitron Inc.
Why PPM?
New Opportunities for Advertisers and
Broadcasters
Enhanced credibility
More stable survey-to-survey trends
Faster data make radio more relevant
PPM offers the 6-11 demographic
Alternative delivery methods can be
measured

6. © 2006 Arbitron Inc.
What’s Different Between the
Methodologies?
Pen and Paper Diary vs. PPM Electronic Measurement
Diary Methodology
» Persons 12+
» Paper diary captures recalled
exposure
» Quarterly report
» 12 different groups of people each
quarter
» Metro, TSA, DMA
» Includes landline households only
» Compliance = return diary
PPM Methodology
» Persons 6+
» Electronic device captures
actual exposure
» Monthly report
» Panel composed of people who
participate over time
» Metro
» Includes cell-only households
» Daily motion based compliance

7. © 2006 Arbitron Inc.
The Impact of PPM on Ratings
High-level data insights

8. © 2006 Arbitron Inc.
PPM Reveals Radio’s New
Listening Dynamics
• People exposed to more stations
• People tune-in more often to more
stations
• Shorter Time Spent per exposure
• Net effect… Higher Cume, Lower AQH
than what we observed in the past

9. © 2006 Arbitron Inc.
PPM Captures More Stations
Per Person Than the Diary
Average # of stations heard per week
Philadelphia Metro, June 2007 PPM vs. Fall 2006 Diary, Mon-Sun 6AM-Mid, Persons 12+, Unweighted
2.8 2.8 2.7
2.9
4.6
5.1
4.5 4.5
Total Black Other Hispanic
Diary
PPM

10. © 2006 Arbitron Inc.
17984
12929
12061
11389
9839
8997 8831
7757
6709
6094 5807
5185
4050 3697
3255
1673
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
W
B
E
B-FM
K
YW
-A
M
W
O
G
L-FM
W
B
E
N
-FM
W
M
G
K
-FM
W
M
M
R
-FM
W
R
D
W
-FM
W
X
TU
-FM
W
P
H
I-FM
W
IP
-A
M
W
Y
S
P-FM
W
R
N
B
-FM
W
P
H
T-AM
W
X
P
N
-FM
W
P
P
Z-FM
W
P
E
N
-A
M
PPM
Diary
Cume Is Up Significantly for
Most Stations in the
Philadelphia Market
Cume (00)
Philadelphia Metro, January 2007 PPM vs. Fall 2006 Diary

11. © 2006 Arbitron Inc.
PPM Shows More
Listening Occasions Per Week
14.1
13.3
16.2
21.7
23.4
21.5
17.3
13.6
Total Black Other Hispanic
AverageNumberofTune-Ins
Diary
PPM
Philadelphia Metro, June 2007 PPM vs. Fall 2006 Diary, Mon-Sun 6AM-Mid, Persons 12+, Unweighted

12. © 2006 Arbitron Inc.
Listening Occasions Are Shorter
1:14
1:36
1:07
1:16
0:35 0:36 0:35
0:30
0:00
0:15
0:30
0:45
1:00
1:15
1:30
1:45
Total Black Other Hispanic
TimeSpentperOccasionofListening
Diary
PPM
Philadelphia Metro, June 2007 PPM vs. Fall 2006 Diary, Mon-Sun 6AM-Mid, Persons 12+, Unweighted

13. © 2006 Arbitron Inc.
Other PPM Themes
What else are we seeing?
• Midday and Afternoon Drive are as strong
as the Morning Drive daypart
• Working persons drive radio listening
• Younger-skewing stations get older,
older-skewing stations become younger
• Events, contests and special
appearances are meaningful
• Nights and weekends are stronger
dayparts

14. © 2006 Arbitron Inc.
Buying Radio in a
PPM World
What does this mean in the real world of planning
GRPs and effective scheduling?

15. © 2006 Arbitron Inc.
TSL
AQH
Rating
At the End of the Day…
All Listening Is Created Equal,
No Matter the Measurement Device
CUME

16. © 2006 Arbitron Inc.
PPM Provides a Different
Audience Measurement
SAME SPEED
• 80 Miles Per Hour
• 120 Kilometers Per Hour
DIFFERENT MEASURE

17. © 2006 Arbitron Inc.
Compression of Ratings In PPM
0.480's HitsKHPT-FM
0.4Classic HitsKHTC-FM
0.4CountryKILT-FM
0.4Rhythmic Contemporary HitKBXX-FM
0.5Contemporary ChristianKSBJ-FM
0.5News Talk InformationKTRH-AM
0.5CountryKKBQ-FM
0.5Urban Adult ContemporaryKMJQ-FM
0.5Spanish Adult HitsKOVE-FM
0.6AlternativeKTBZ-FM
0.6Hot Adult ContemporaryKHMX-FM
0.6Classic RockKKRW-FM
0.6Pop Contemporary Hit RadioKRBE-FM
0.6Adult ContemporaryKODA-FM
0.6Mexican RegionalKLTN-FM
AQH RatingFormatOutlet
Person 25-54 Mo-Su 6a-12m
Houston - April 2007

18. © 2006 Arbitron Inc.
Ratings Compression Comes
with PPM
• Fewer GRPs spread among the same
number of stations
• Lower ranked stations closer to the
leaders
• Several stations with nearly the same
ratings
• More stations to consider
• Qualitative and other metrics take on
greater importance in station selection

19. © 2006 Arbitron Inc.
Cost Per Point adjustment:
A Tale of Two Schedules
Original buy with Diary
Original buy with PPM

20. © 2006 Arbitron Inc.
Cost Per Point adjustment:
A Tale of Two Schedules
Original buy with Diary
Original buy with PPM

21. © 2006 Arbitron Inc.
PPM vs. Diary Reach
Scenarios
Green=PPM Reach indexes 5% or higher than Diary
Blue= PPM within 5% of Diary (higher or lower)
Red= PPM indexes 5% lower than Diary
1111021109710895W 18-34
11810711610211397M 18-34
4 weeks1 week4 weeks1 week4 weeks1 weekPPM
24 spots/ station18 spots/ station12 spots/ station
1131041159911091W 25-54
10592103889983W 18-34
136124134119127112M 25-54
112981099410487M 18-34
4 weeks1 week4 weeks1 week4 weeks1 weekDiary
24 spots/ station18 spots/ station12 spots/ station

22. © 2006 Arbitron Inc.
Reach and Frequency Key
Findings
• One week Reach for PPM: Near diary for
moderate and heavier schedules; somewhat
lower for lighter schedules
• Four week Reach for PPM: Significantly
higher than diary for moderate and heavier
schedules; roughly the same for lighter
schedules
• Station selection by PPM Rank: Reach is
generally higher when stations are selected
based on rank in PPM instead of diary

23. © 2006 Arbitron Inc.
PPM Service
Launch in New
York and Beyond
SM

24. © 2006 Arbitron Inc.
Hours of Out-of-Dock and In-
Motion are Consistent Across
Markets
15.5
14.5
15.6
14.6
15.6
14.6
0
5
10
15
20
Out-of-Dock In-Motion
MedianHours
Houston Philadephia New York
September 2007, Total Week, In-tab Persons

25. © 2006 Arbitron Inc.
Meter Out-of-Dock Times are
Consistent Across Market by
Race/Ethnicity
14.5 14.5 14.2 14.614.6 14.6 14.2
14.714.6 14.7
14.2
14.7
0
5
10
15
20
Total 6+ Black 6+ Hispanic 6+ Other 6+
MedianHours
Houston Philadelphia New York
September 2007, Total Week, In-tab Persons

26. © 2006 Arbitron Inc.
Encoding Status
New York Metro
(including Nassau-Suffolk and Middlesex-Somerset-Union)
• Invited to encode: 152 stations
• Agreed to encode: 115 stations
» 89.7 share of NY Metro
• Ready for reporting: 93 stations
» Includes stations that have installed encoding
equipment and completed all assurance checks
» 89.4 share of NY Metro
As of 10/27/2007

27. © 2006 Arbitron Inc.
Reporting
• All stations that meet minimum reporting
standards will be reported in all services
» Including non-subscribers and non-commercial
stations
» Total Line Only reporting for qualified stations using
same rules as diary service
• New broadcast platform (e.g., Internet, HD)
reporting beginning in 3Q 08

28. © 2006 Arbitron Inc.
Reporting
• PPM = metro estimates only
» Diaries remain in non-metro counties
» DMA estimates will be based on meter/diary combined
estimates
• Meter Diary Combination Process
» AQH Persons and Cume Persons calculated from PPM
sample in Metro counties
» AQH Persons and Cume Persons calculated from diary
sample in non-metro counties
» Persons estimates summed to produce DMA estimates

29. © 2006 Arbitron Inc.

30. © 2006 Arbitron Inc.

31. © 2006 Arbitron Inc.
Station: WAAA-FM (example) (hybrid)
New York
Spring 07 Counties 12+ Pop.
DIARY AQH
Persons
COMBO AQH
Persons
BERGEN, NJ 773,200 8,400 5,880
BRONX, NY 1,088,400 8,600 6,020
DMA County DUTCHESS, NY 255,100 100 100
ESSEX, NJ 647,400 7,900 5,530
DMA County FAIRFIELD (BR SPLIT) 292,900 0 0
DMA County FAIRFIELD (D SPLIT), CT 161,900 200 200
FAIRFIELD (SN SPLIT), CT 302,000 300 210
HUDSON, NJ 505,300 6,000 4,200
DMA County HUNTERDON, NJ 112,400 200 200
KINGS, NY 2,044,500 25,100 17,570
MIDDLESEX, NJ 671,300 5,600 3,920
MONMOUTH, NJ 538,000 2,800 1,960
MORRIS, NJ 416,500 4,100 2,870
NASSAU, NY 1,130,700 8,600 6,020
NEW YORK, NY 1,399,000 8,600 6,020
DMA County OCEAN, NJ 482,500 700 700
DMA County ORANGE, NY 314,800 200 200
PASSAIC, NJ 407,900 4,600 3,220
DMA County PIKE, PA 51,700 0 0
PUTNAM, NY 85,800 0 0
QUEENS, NY 1,898,900 19,800 13,860
RICHMOND, NY 396,500 5,200 3,640
ROCKLAND, NY 241,600 900 630
SOMERSET, NJ 269,500 1,100 770
SUFFOLK CENTRAL W, NY 365,200 900 630
SUFFOLK CENTRAL E, NY 419,600 1,100 770
SUFFOLK EAST, NY 117,200 100 70
SUFFOLK WEST, NY 341,200 900 630
DMA County SULLIVAN, NY 66,700 100 100
DMA County SUSSEX, NJ 131,500 300 300
DMA County ULSTER, NY 160,400 0 0
UNION, NJ 442,000 5,000 3,500
DMA County WARREN, NJ 94,100 200 200
WESTCHESTER, NY 789,400 5,300 3,710
TOTAL DMA AREA 17,415,100 132,900 93,630
TOTAL METRO AREA 15,291,100
Ratio 87.8%
ALL PPM
AQH Persons
5,880
6,020
70
5,530
0
140
210
4,200
140
17,570
3,920
1,960
2,870
6,020
6,020
490
140
3,220
0
0
13,860
3,640
630
770
630
770
70
630
70
210
0
3,500
140
3,710
93,030
Ratio: 99.4%
Metro = 87.8%

32. © 2006 Arbitron Inc.
11/7: October PPM Pre-Currency Release
Summer 07 Diary Book Releases (last diary report)Oct 07
(9/20—10/17)
New York, Nassau-Suffolk, Middlesex-Somerset-Union
PPM Rollout Plan
12/5: November PPM Pre-Currency Release
Summer 07 Diary Book Still CurrencyNov 07
(10/18–11/14)
12/31: December PPM Currency Release
Summer Diary Book No Longer CurrencyDec 07
(11/15–12/12)
•
© 2006 Arbitron Inc. 06-PPM-957 11/06
• Only one currency in use at a time
• Full three month value of Summer Diary book
• Two months of PPM demonstration data prior to Currency

33. © 2006 Arbitron Inc.
Pre-Currency Do’s & Don’ts
• Pre-currency data include the two months of ratings released
before the first month of currency data
» New York pre-currency months are October and November 2007
» For agencies: Pre-Currency data may be used for media planning
purposes, but not to negotiate prior to the first currency month
• Once the first month of currency data has been released, the two
months of pre-currency data may be used for media planning,
buying and selling purposes
» New York first currency month is December 2007
» Once the first month of currency data is released, the preceding two
months of pre-currency data can be used for posting purposes
– This is a unique circumstance that only occurs when a market is converting
from diary to meter.
• Data should not be provided to or shared with any stations that are
unlicensed to receive PPM data.

34. © 2006 Arbitron Inc.
Final Diary Reports
First PPM Currency Reports
Transition to PPM Measurement
Atlanta
Detroit
Washington
Dallas
San Francisco
Chicago
Los Angeles
New York
Houston
Philadelphia
March 08
June 08
Sep 08
December 08
December 08
Jan
Dec
2008
FA 07
FA 07
SP 08
SU 08
SU 08
March 08
WI 08
December 08SU 08
December 07
June 07
March 07

35. © 2006 Arbitron Inc.
PPM Futures
New Design
Blue Tooth Capability
3rd Party “Host” Device
Service Beyond Top 50