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As advertisers are increasingly pressuring their agencies to be accountable, agencies are pressuring radio stations to guarantee audience delivery for radio schedules in portable people meter markets.
The tactic, called posting, may soon become common practice, according to a number of radio executives interviewed during the National Association of Broadcaster’s Radio Show in Charlotte, N.C. last week, writes Mediaweek.
PPM reports show that average quarter-hour ratings are 20 percent to 30 percent lower than when ratings were tracked via paper and pencil. If radio conducts business as usual, they will get lower rates because of the lower average quarter-hour ratings.
Posting may be a way of charging premium rates for highly rated events and programming, to compensate for those lower rates.
Emmis, CBS Radio and Greater Media are some of the radio groups in the two current PPM markets - Philadelphia and Houston - that have talked about charging premium rates for special events. If the ratings projected for the event don’t come through, makegoods are negotiated.
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