Radio terms and calculations Terms Adjacency – Commercial that runs immediately before or after a program or feature. Bursting - A pattern where heavy advertising has been concentrated over a short period. For example: one week’s advertising runs during a four day period. Affidavit – Written proof-of-performance from a radio station that a commercial ran as ordered. Central Area – Central area is a BBM defined geographical area assigned to a station(s) for reporting purposes. It generally corresponds to Statistics Canada’s definition of Census Metropolitan Areas, Census Agglomerations, Cities, Counties, Census Divisions, or Regional Districts. Audience Composition - The demographic or socioeconomic profile of a station's audience in terms of composition usually including the percentages of the total audience that fall into each segment. These reports can express audience characteristics by age, gender, ethnicity, working persons, language preference, country, etc. Circulation – The potential daily or weekly coverage of a station. Audience Duplication - The amount of one station's cume audience (see Cume Persons) that also listens to another station. Duplication can be expressed either in terms of the actual number of exclusive listeners or as a percentage of the total cume. Commercial Clutter - Commercial clutter commonly refers to an excessive amount of non-program content during the time period, including the number of commercials, public service announcements and/or promotional announcements that run in a commercial break, stop set or specified time period. Audience Turnover - The radio of a station's cumulative audience (see Cume Persons) compared to the average quarterhour audience. Turnover equals cume persons divided by AQH persons. In theory, it is the number of times an audience is replaced by new listener within a daypart. Composition (Audience) – The percentage of the audience that are members of a target group. For example: of CXXX’s Adult 18+ audience (or cume), the number (or percent) that are 25-49 years of age. Continuity - Pattern of uninterrupted advertising activity during a specified period. Availabilities – or “avails” are commercial positions available for sale to advertisers. Cost Per Rating Point (CPP) - CPPs analyze a schedule based on the cost of one rating point. It is another method of comparing the cost efficiency of vehicles. For the calculation please see the Calculations section. Average Frequency - Average Frequency refers to the average number of times a person is exposed to a Radio schedule. For the calculation please see the Calculations section. Average Hours Tuned - The Average Hours Tuned to a station or to Radio by a listener. For the calculation please see the Calculations section. Cost Per Thousand (CPM) - The CPM analyzes a schedule based on the cost of delivering 1,000 impressions. One impression is one advertisement delivered to or heard by one person. Cost per thousand is generally calculated on Full Coverage. For the calculation please see the Calculations section. Average Quarter Hour Audience - The Average Quarter Hour (AQH) Audience is the average number of people in a demographic group listening to a station or the Radio during an average quarter hour in a given time period. For the calculation please see the Calculations section. Cume - The estimated number of different persons who tuned to a station or the radio for at least one quarter hour within a specified time period. Also called Reach. Each person is counted only once. The unduplicated number of people tuned one or more times to a station in a given time frame (i.e. Potential coverage or circulation of a station). Average Quarter Hour Rating - The Average Quarter Hour Rating expresses the average quarter hour audience as a percentage of the population in the geographically defined area. It is often known of as a rating point. Cume Rating - The cume audience expressed as a percentage of the population in a geographically defined area. Also called Percent Reach. BBM Canada - BBM is a non-profit tripartite research company, which surveys and reports radio listening habits across Canada. Dayparts - The broadcast day is divided into dayparts or time blocks/periods. The definition of the dayparts will vary between stations. Here is an example: Blinking/bunching - Advertising activity over a short period. For example: one week on – one week off – one week on. Breakfast/Morning Drive Mid-Day: Afternoon/Evening Drive Evening: Bonus - Additional commercials given to an advertiser, usually at no charge, in return for a paid schedule. Broadcast Coverage Area - The geographic area within which a signal from an originating station can be received. 1 Monday - Sunday Monday - Sunday Monday - Sunday Monday - Sunday 5:00am - 10:00am 10:00am - 3:00pm 3:00pm - 8:00pm 8:00pm - 1:00am Radio terms and calculations Direct Response Advertising - Direct response refers to any advertising that has a built-in call to action to elicit a response within a defined period of time after exposure to the announcement. Phone calls, online orders, and visits to a location would be examples of a direct response advertising. Full Coverage Area - Full coverage refers to a station’s total audience, tabulated from all diaries that reported tuning to the station regardless of the sampling cell from which the diary originated. Full coverage audiences may not be expressed as a percentage because a geographic area is not defined. Percent reach and rating cannot be computed for a station’s full coverage audience. Effective Reach - The average number of people that will hear a commercial at least three times during a campaign. Gross Impressions - The total number of exposures to a media schedule or the total number of times a commercial is heard. Endorsement - Refers either to a situation where the station or personality "endorses" the advertiser's product or service, usually "live" on-air or the notification on the affidavit supplied by the station to the client that attests to the affidavit's accuracy as to how the spots were broadcast. Gross Rating Points (GRPs) - GRP equals the percentage of the target group that will hear the ad, multiplied by the average number of times heard per person. Therefore: GRP = % target audience reached x frequency For example, if you plan 300 GRPs per week against a given target group, you can reach 65% of that group, an average of 4.6 times. 300 GRPs = 65 x 4.6 Flighting – The period during which an advertiser runs their advertising (less than 52 weeks) as opposed to continuous advertising. Periodic waves of advertising, separated by periods of total inactivity. Index - A comparison between the market composition and the target composition. It is a measure of concentration or likelihood. It tells us whether a specific group is more or less likely to meet a given criteria. Format Adult Contemporary (AC) Hot Adult Contemporary Classic/Mainstream Rock Modern/Alternative Rock Mainstream Top 40/CHR Urban News/Talk Sports and sports talk Country Gold/Oldies Classical/Fine Arts Adult Standards Jazz Religion Ethnic/Multi-cultural Multi/Variety/Specialty Includes soft rock, light rock, soft pop Includes modern, adult pop/CHR Includes classic rock, AOR, mainstream rock Includes modern and alternative rock Includes dance, contemporary hit radio, (Contemporary Hit Radio), current hits Includes reggae, r&b, hip hop Includes talk, business and news Includes play-by-play sporting events and sports talk Includes new country and old country Includes classic hits, oldies Includes concert music, arts and cultural topics Includes big band, nostalgia Includes NAC, smooth jazz, jazz, blues Includes gospel and inspirational music/talk Includes ethnic and multicultural, block programming Includes a variety of programs appealing to different demo groups Release Dates P = Publication date C = CD/Book release Survey 4 Sept. 5 - Oct. 30 Dec. 5 (P) Jan. 5 (C) Survey 1 Jan. 9 - Mar. 5 April 10 (P) May 3 (C) Survey 2 May 1 - June 25 July 31 (P) Aug. 23 (C) Survey 3 July 3 - 16 Oct. 2 (P) Oct. 27(C) * Contact RMB’s Research Department for exact dates Percent Reach - This is the reach audience expressed as a percentage of the population of a geographically defined area(s). Also called Cume Rating. For the calculation please see the Calculations section. Reach - Reach is the estimated number of different people who listened to a station or to Radio for at least one-quarter hour within a specified time block. A person who listened for only 15 minutes during the time period Monday to Friday 6:00am to 10:00am, and a person who listened all four hours each day are counted the same in a reach estimate. Each person is counted only once. It is an unduplicated or cumulative audience. Also referred to as CUME. Reach is calculated directly by the computer from the diaries. Radio Survey Schedule* Measurement Period Live Read - A specific commercial type where the announcement is read "live" on-air by a station personality. Pulsing - A pattern that employs an uneven distribution of advertising weight over time, using regular, non-regular or no spacing between schedules. For example: four weeks at 30 spots per week followed by 20 spots a week for 2 weeks. Frequency of Measurement - The number of surveys varies by market. This chart describes the frequency of all BBM Radio surveys: Survey Lead Time - The minimum amount of time necessary for the station to be informed in advance of schedule placement, or changes that are requested by the client in a buy already scheduled to run. Can also refer to the amount of time between the announcement of a possible campaign and the actual dates it is scheduled to run. Remote – on location broadcast. 2 Radio terms and calculations RTS (Return to Sample) - RTS Canada is the largest syndicated consumer study, offering unprecedented detail into the media and consumer preferences of Canadians. The study, released every six months, provides a wealth of information including demographics, media habits, shopping habits, psychographics, and leisure activities. In addition to national data, RTS allows provincial/regional breakdowns and is available for 11 individual markets including Toronto, Vancouver, Victoria, Calgary, Edmonton, London, Halifax, Kitchener, Hamilton, Montreal, and Quebec City. This database allows sales reps to become consultants to their existing and potential clients by providing valuable information, not only on Radio, but on other media as well. Target Demo - The age and characteristic make-up of the group deemed to be targeted for reach by the media campaign. The age group and make-up of the audience that you wish to receive your product or service message. Total Hours Tuned - Total Hours Tuned is the sum of all hours of tuning done by the persons reached by the station or the Radio. For the calculation please see the Calculations section. Turnover - Turnover is the number of times the audience changes during a time period. It explains the relationship between AQH and cume. A low turnover factor indicates a better frequency builder and a high turnover factor indicates faster cume growth. For the calculation please see the Calculations section. Share of Hours - The percentage of the total hours of Radio tuning done in a geographically defined area, to a specific station at a given time. For the calculation please see the Calculations section. Sliding - A schedule in which the pattern of advertising changes over the course of a campaign, in terms of advertising weight and spacing intervals. Generally refers to a campaign pattern of heavy weight at the start. As the campaign progresses the weight is reduced, with the hiatus between schedules increased. Sponsorship - The purchase of more than one commercial within a program, usually at a premium rate. Can refer to the purchase of all or part of a Radio program by one advertiser. 3 Radio terms and calculations Calculations Average Hours Tuned - Average hours tuned per listener is calculated by dividing the total hours tuned to a station or to Radio by the reach. Example: Interpretation: Adult listeners 18-49 tuned to Radio for an average of 5.8 hours during the breakfast daypart. Average Example: Station CAAA Quarter Hour z Population: All persons 18-49 in the market: Rating - The 179,220 average z Average quarter hour audience between 6:00 quarter hour to 10:00 a.m.,Monday to Friday, is 11,206 rating is Average Quarter Hour Rating = calculated by Average quarter hour audience x 100 dividing the Target Population average 6.3 x 100 = 11,206 quarter hour 179,220 audience by the target population, and multiplying by 100. z Adults (18-49), Monday - Friday, 6:00-10:00 a.m. z Total hours tuned: 12,162,300 z Reach of station/radio: 2,085,300 Average Hours Tuned = = 12,162,300 2,085,300 5.8 Average Frequency - To calculate average frequency, you need the following two numbers: Gross Rating Points (GRPs) and Percent Reach Example: Average Frequency = z GRPs: 150 GRP z Percent Reach: 50 Percent Reach Interpretation: The average quarter hour rating for 6:00 a.m. to 10:00 a.m. on Monday through Friday against adults 18-49 is 6.3. Average Frequency = 150 50 = 3 times Cost Per Thousand (CPM) - To calculate CPM, you need Gross Impressions and total schedule cost. Interpretation: On average, each person reached by this schedule will hear the commercial three times. Because of listening habits, some of the people reached will hear it only once, but the AVERAGE frequency will be three. Cost per Thousand = Interpretation: The cost per thousand is $9.73. Average Quarter Hour Audience - AQH audience is calculated by summing the estimated audiences for each quarter hour period and then dividing by the number of quarter hours in the time period. Interpretation If an advertiser placed only one occasion on CAAA in a random quarter hour during 6:00 a.m. and 10:00 a.m. on Monday through Friday, the estimated average audience to have heard the advertisement would be 11,206 people. Please note: Cost per thousands are generally calculated on Full Coverage. Time Period 6:00 – 6:15 am 6:15 – 6:30 am 6:30 – 6:45 am 6:45 – 7:00 am 7:00 – 7:15 am 7:15 – 7:30 am 7:30 – 7:45 am 7:45 – 8:00 am 8:00 – 8:15 am 8:15 – 8:30 am 8:30 – 8:45 am 8:45 – 9:00 am 9:00 – 9:15 am 9:15 – 9:30 am 9:30 – 9:45 am 9:45 – 10:00 am TOTAL: X Example Gross Impressions (Adults 18–49) Total Schedule Cost 1000 = 205,500 = $2,000 CPM = $2,000 205,500 x 1,000 = $9.73 Cost Per Rating Point (CPP) - To calculate cost per rating point, you need the total rating points delivered by a schedule and the cost of the schedule. Example: Station CAAA Mon-Fri Mon-Fri Mon-Fri Mon-Fri Mon-Fri Mon-Fri Mon-Fri Mon-Fri Mon-Fri Mon-Fri Mon-Fri Mon-Fri Mon-Fri Mon-Fri Mon-Fri Mon-Fri Total Schedule Cost Gross Impressions Adults 18-49 (00) 78 90 118 91 144 140 115 102 142 135 105 106 111 107 106 103 1,793 Example Cost of Schedule GRPs CPP = $2,000 114.6 Cost per Rating Point = Cost of Schedule GRPs = $2,000 = 114.6 = $17.45 Gross Impressions - Gross Impressions are calculated by adding up the impressions or average quarter hour audience estimates for each spot. Interpretation: The commercial is potentially heard 205,500 times by the 18 – 49 audience with the schedule of spots. This figure includes DUPLICATION – people who hear the commercial more than once. Example Dayparts Average Quarter Sum of AQH Audiences Hour Audience = Number of Quarter Hours = 179,300 16 11,206 = M-F M-F M-F Sat Sun AQH Audience Adults 18-4 49 (00) 6:00-10:00am 10:00am-3:00pm 3:00-7:00pm 7:00am-7:00pm 7:00am-7:00pm 112 101 105 58 35 # of Spots x x x x x 5 5 5 5 5 Gross Impressions (00) 4 Gross Impressions = = = = = 560 505 525 290 175 2,055 Radio terms and calculations Optimum Effective Scheduling System (OES) - OES is a buying and scheduling concept that was specifically designed for and proven on Radio. Research indicates that OES Radio campaigns are eight times more likely to produce results than non-OES schedules. Consumers must be exposed to an advertising message a minimum of three times. OES involves repetition and concentration – breaking through the clutter to achieve threshold advertising levels. This results in campaigns with a greater number of occasions than traditional schedules. Total Hours Tuned - It is calculated by multiplying the AQH audience by the number of quarter hours in the time period and dividing by 4 Example: (the number of z AQH audience, Monday - Friday, 6:00quarter hours in 10:00am, Adults 25-54: 3,069 an hour). z # of Quarter hours Monday - Friday, 6:00-10:00am: 80 Interpretation: Total hours of Total Hours Tuned tuning to Station = 3,069 X 80 CAAA Monday4 Friday 6:00 to 61,380 = 10:00am by adults 25-54 is 61,380. The essential figures are the station’s turnover ratio and the OES spot factor of 3.29: 1. Calculate the station’s turnover ratio for a broad demographic, Monday – Sunday 5:00am to 1:00am Example: Turnover Ratio = 350,000 24,000 = Reach AQH Turnover - Turnover is calculated by dividing the station’s reach audience by its average quarter hour audience. 14.5 Turnover 2. Multiply the turnover ratio times 3.29 to determine the number of spots per week. Example: 3.29 x Turnover Ratio 14.5 # of Occasions 48 spots = Example: Station Percent Reach - Percent reach is calculated by dividing the reach audience by the target population and multiplying by 100. Example: Station CAAA z Reach: Adults 18-49: 63,300 z Adults 18-49 in the market: 179,220 Percent Reach = = = Reach x 100 Target Population 63,300 179,220 35.3% x 100 Share of Hours - It is calculated by dividing a station’s total hours of tuning by the total hours of tuning in the market, and multiplying by 100. Interpretation: Station CAAA’s share of total hours tuned, Mon-Fri, 6:00am to 10:00am against adults 18-49 in the market is 17.1 percent. Example: Station CAAA z CAAA’s hours: Monday - Friday, 6:0010:00am, Adults 18-49: 6,000 z Total Hours of Tuning in Market: 35,000 Share of Hours = x 100 CAAA’s hours Total hours of tuning in market = 6,000 35,000 x Reach Audience Average Quarter Hour Audience Interpretation: The audience of Station CAAA turned over 2.6 times during the 3:00 pm to 7:00 pm time period. Station CCCC’s audience turned over 8.2 times. A low turnover factor indicates a better frequency builder and a high turnover factor indicates faster CUME growth. 3. Run the spots with a guaranteed even distribution across all days and dayparts, Monday – Sunday, 5:00am to 1:00am Interpretation: Breakfast on CAAA has a reach potential of 35.3% against all persons 18 – 49 in the specified market. = 100 = 17.1% 5 Monday - Friday, 3:00 - 7:00pm Reach Audience Average Quarter Hour Audience Turnover CAAA 2,140 / 810 = 2.6 CBBB CCCC 950 735 / / 145 90 = = 6.6 8.2 Radio terms and calculations BBM Audience Estimates – Do’s and Don’ts Sometimes it’s necessary to combine certain demographics, stations or dayparts to obtain an estimate not reported in BBM’s market books. Certain audience estimates can be combined while others cannot. The following chart provides a quick reference to combining numbers: Do’s and Dont’s BBM Audience Figure Station CUME (Reach) NO CUME (Rating) NO Average Quarter Hour (AQH) YES Audience AQH Rating YES Shares YES Demographic YES NO YES Daypart NO NO NO Stations: AQH Audiences, AQH ratings and shares can be combined to determine the total for more than one station in NO NO a market. However, due to duplication between stations, cumes NO NO cannot be added to produce a relevant number. A person counted in the cume for station CAAA may also have listened The chart assumes exclusive demographics and dayparts as well as a to station CBBB and counted in that station’s cume. Therefore, constant geography. adding cume estimates would result in an inflated figure. Demographic: AQH audience and cume estimates can be added to arrive at a combined figure for demographics not reported by BBM. For example, adding the men 25-34 and men 35-64 estimates provides the audience of men 25-64. AQH ratings and percent reach cannot be combined as the base population of each demographic is different. However, it is possible to obtain these figures for more than one demographic by combining the AQH or cume audience and dividing by the total population for both age groups. Shares cannot be added due to the different base (total hours tuned) for each demographic. Adding shares across demographics produces meaningless figures. Daypart: As with stations, cume figures cannot be added due to the duplication between dayparts. A person listening to a station during the breakfast period and later the drive period would be counted as part of the cume for both dayparts. Shares, AQH audience and ratings cannot be added as the result would be a total of two averages. Also, combining these figures does not take into account that the number of quarter hours in each daypart may be different. This means that each audience figure was calculated using a different quarter hour base. S e a s o n a l i t y/ T i m e l i n e s Season January/February Demand Low March/April Medium/Low May/August Very Heavy Mid-August/September October November/December Heavy Medium/Heavy Very Heavy Rationale Lead Time z Traditionally a low advertising season which is especially true for retailers z Some Valentine’s Day z Financial Institutions will drive up demand in February advertising RSPs 10+ weeks Other Major/ Minor Markets 8+ weeks z Overall advertising starts to pickup z Easter 10+ weeks 8+ weeks z Particularly young skewing stations due to beer/ pop advertising z Other products with high summer consumption 12+ weeks 10+ weeks z Back to School z Especially heavy with retailers 12+ weeks 10+ weeks z Thanksgiving z Halloween z Some pre-Christmas starts 12+ weeks 10+ weeks z Pre-Christmas advertising rush 12+ weeks 10+ weeks 6 Tor./Van./Cal.