The Midweek
 Motivator

Audience Development Group

Ratings, Research and Reality                                          June 25, 2014

 
Tim Moore
Tim Moore, Managing Partner Audience Development Group

Managing Partner

Audience Development Group

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DMR and Coleman Insights, two of our most trusted resources have spent a lot of analysis on PPM, Nielsen, real P-1's and "mindshare." Among the probative topics:

 

  • How are Americans really listening to the radio?
  • What are the implications for both PPM and Diary markets?
  • What can be learned from the most successful marketers?
  • How is your audience really defined, and what must be done?

 

Dave Knox CMO of Rockfish and former P & G Digital Brand Manage exclaims:

The best marketing you can do is to build a great product. Immutable truths:

 

The best brands are highly differentiated brands: unique, meaningful and sustainable.

Starbucks, Netflix, Nike, ESPN are examples So what makes radio stations different? We no longer have a competitive advantage in song titles, music software, available research or knowledge. The coruscating reality says music is not in itself a "differentiator." In fact the PPM paradox equally valid in diary markets: what's between the records? PPM has proven non-music elements cannot be too long, too irrelevant or too unnecessary.

 

In short, we have less time between the songs to build and define our brand. In most PPM clocks,  hourly branding is about 5%. How then do we differentiate? We're literally running out of time! PPM markets have long since gone to appointment-setting, song-of-the-day and points rewards schemes as an example. DMR proclaims, "It's time to see reality through the eyes of the consumers." According to A.C. Nielsen Center for Marketing Research, small groups drive brand success. Further, Emmis Interactive looked at 27 million listenersthrough databases. A very small percentage of any brand's consumers create 80% of a brand's consumption.  This application of the time-tested Pareto Rule transfers to people like P&G and Starbucks who focus on the 20% of their customer universe to create 75-80% percent of their revenue! BULLETIN: Not all P-1's are created equal!

 

Today, we can identify a group known as "Deeply Loyals" who will commit over 50% of their time to their P-1 station. Nielsen confirms this finding.In fact, P-1 listeners really divide into two camps: "Shallow" who spend less than 50% of their time with a P-1 station and "Deep" who as just described, spend more than 50% with their favorite station.

 

And let's look at Starbucks more closely: Bill Black says there are five categories within the Starbucks' consumer coalition but only two groups amass 75 percent of Starbucks consumption: "Coffee House Enthusiasts" and "Super-Users."

 

Proctor & Gamble says "It all comes down to 'moments of truth' which refers to a point-of-purchase decision just before buying action." This is analogous to Radio as it applies to someone who in their moment-of-truth asks themselves "who will I listen to?" Nielsen: A typicalHeavy Deep listener will have 31 moments of truth every week. Your key to success lies in winning as many moments of truth as possible. It's time to look through the other end of the telescope; focus on the real hyper-core that will yield 80% of your success.

 

Thanks to our colleagues at DMR and Coleman Insights.

Sincerely,

Tim Moore

Tim Moore

Managing Partner 

Audience Development Group

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When you're in a ratings war it's best to aim high. When you're in a budget war it's best to aim low.  Do both with one nationally proven, multiple format consulting partner: one firm, one culture, one travel expense, one consolidated fee. Call us today...before your competition does.

 

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