MindShare To Begin PPM-Based Radio Buys With 90% Delivery Guarantees

Holding Radio Accountable
Looks like radio will soon be governed by similar rules that have long-applied to TV in terms of audience delivery, under PPM. ALL ACCESS has obtained a memo from MINDSHARE Sr. Broadcast Negotiator KATHI CLAIRE that was sent to all HOUSTON radio stations. The email, reads as follows:

To Our Houston Radio Partners:

MindShare is now going to post radio for all PPM markets. This will affect everything placed in Houston from this date forward, as well as for the 2008 Burger King already placed. I can now discuss ratings and demos with you. All buys will have to be guaranteed to deliver 90% of the total points for the estimate, with under delivery weight run as requested at a later date.

I'll re-send the 2008 1Q and 2Q BK skeds with the ratings soon. If anyone wants to drop out based on having to make a guarantee, you'll have a week to do so after I send the numbers. Nothing already booked in 2007 will be posted (except through BK's audit company which started doing this after
the fact).

Please make sure that all of your managers are aware of this. Thank you.

MINDSHARE President/Local Broadcast KATHY CRAWFORD responded to ALL ACCESS saying she was in an all day meeting, and would respond to this matter tomorrow.

One HOUSTON broadcaster spoke to ALL ACCESS, taking a shot at ARBITRON's under sampling issues in key demos. He commented: "This is a first in the radio industry and has tremendous implications to all, especially with the 18-44 sample, and the 35-44 sample, being so under-represented in most PPM markets, so far.

"Imagine your station depends on 18-34 year olds. And because of the sampling is half of what it should be, Oldies stations win in that demo and you are forced to make-good spots. Why would a station go Christmas music, knowing that they must guarantee those numbers in Q1 and Q2 if they base their pricing off of them. This has tremendous format implications as well, potentially affecting 18-34 targeted formats."

Arbitron Has Improved In Houston In-Tab

While In-Tab was soft in some demos, ARBITRON pointed out in a conference call held last FRIDAY (NET NEWS 11/9), that it had improved in several areas, 18-34 Persons in HOUSTON being one of them. In OCTOBER 2007, the In-Tab Target for HOUSTON was 364. The actual was 346, with a DDI of 95. That's close to hitting 100% of the demo. Both 6+ and 12+ were both at 100, and 25-54 was actually over the target, with a DDI of 104.