Surgeon General Finds Many Radio Companies Addicted to PPM; Shorter Life Spans Expected
12:55:48 pm | Reinventing Radio | Mike Henry
I couldn’t let Taylor on Radio-Info’s lead story today pass without comment. The headline was “Shut up and play the hits? Is radio over-reacting to PPM’s supposed “love of music”? Based on how most radio companies are reacting to PPM, the headline could have been “Surgeon General finds that many radio companies are addicted to PPM; shorter life spans expected.”
I was an early detractor of the diary methodology and was among the first to urge radio toward electronic measurement. However, every new methodology is by nature untested. The PPM technical methodology is not only new, but a new panel sampling methodology is also added to the mix. My opinion is that the new technology is a big leap forward, but that the panel sampling (and sample size) raises many questions and concerns. For further proof, look north to Canada where they have seamlessly adopted electronic measurement with the exact same technology but a sturdier sampling plan. Whatever your opinion, the facts are the facts: PPM’s technology and sampling is still very new. Relying on new data as hard facts, and changing strategies every time the new data changes, is naïve and risky.
Radio’s obsession with the PPM leapt right over a much-needed period of data review, analysis and trend-building. It took years, if not decades, to establish reliable trends and patterns with the diary. It will take the same extended period to really understand how PPM works (and doesn’t). Yet, in the zeal to provide buyers with a more contemporary ratings methodology, which was and is badly needed, radio is already treating PPM as the gospel according to Job.
Tell me another industry that would completely change its consumer proposition, not because of changes in the consumer, but simply due to changes in the way their consumers are surveyed. Radio’s dependence on following the bouncing PPM ball is both ridiculous and humorous. It’s ridiculous to watch radio companies and programmers change their strategic tune about what PPM really means every time a new pattern emerges. It reminds me of the reactive game played by the NSA at airports. “Uh oh, we found a shoe bomber. Everyone, TAKE OFF YOUR SHOES.” In radio’s case, it’s “Uh oh, PPM says everything but a massive hit song is a turn-off. Everyone, TAKE OFF ALL TALENT AND ONLY PLAY THE VERY BIGGEST HITS.” It’s humorous because PPM soothsayers have come out of the woodwork as if they have discovered the secret of life…until the next PPM trend emerges and suddenly there is a new secret of life. It took NASA over a decade to shoot for the moon. It took radio less than two years to shoot for Uranus, and that’s exactly where many of now find themselves.
Here’s the headline I expect soon: “PPM finds highest listening levels occur when nothing airs. Thousands of radio stations immediately sign off and raise their rates.”
I, along with millions of listeners, look forward to the day when radio recommits to…dare I say it…the listeners.


excellent points Mike. I think a little more patience is needed - but as we know - that’s easier to do if you aren’t getting your ass-kicked in PPM.
I blogged about the negative effect of PPM on radio-making in Feb under the title PPMIWYP
Or - PPM is Watching You Pee.
http://precipice.wordpress.com/2009/02/08/ppmiwyp/
While most people are focused on the fear of creating tun-outs - the missed opportunity in my view is in how well PPM captures and credits big events like diaries never could.
So, instead of blanding our broadcast to limit potential “tune-outs” - PPM ought to be inspiring us to create bigger TUNE-IN events, more often.
But - that actually requires some different kind of work. Some different creative efforts. And a willingness to screw up.
Those are in short supply when everyone is just trying to keep their job.
jeffschmidt | 07/30/09 04:29:42 pm
Thank you for the comments, Jeff. I’m not sure we’re in the majority on this, but it’s nice to know if I am crazy I’m not the only one! I just read your blog post and it is fantastic! I encourage everyone who is following this to do the same. It is at:
http://precipice.wordpress.com/2009/02/08/ppmiwyp/
Your points about live events being a sweet spot for radio is right on. From a monetization standpoint, live events and promotions are a pillar of the New Radio Model. Follow the New Radio Model Blog series on this blog site, and also at:
http://blog.bia.com/bia/
Keep up the great production, Jeff, and thanks for sticking with radio. We need to keep the best creatives like yourself for the next generation of multiplatform radio stations.
Mike Henry | 07/30/09 04:51:02 pm
I am so glad you wrote in to Tom Taylor exactly what I was thinking when I read it myself! More music in PPM is absolutely a path to disaster because listeners can get all the music jukeboxes they want these days online and on mobile devices – without any interruption…..if that is what they really wanted. The beauty of radio is really what goes on in between the records that brings the brand to life. The beauty of radio should be that brand connecting with its consumers (they are not just listeners anymore) with new forms of engagement through new forms of distribution. And programmers should be compensated to do so.
DMilano | 07/31/09 11:01:11 am
Mike-
Nice blog. It’s important for us to remember that just because we can see data quicker, doesn’t mean that people will change their habits any faster.
JRiley | 08/01/09 05:44:51 am