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How are advertising ratings measured?

Ever heard the one about the statistician who drowned while wading across a river with an average depth of four feet? It’s amazing that so many people in the advertising world treat survey results (i.e., ratings) as gospel. In fact, the decision of where to spend millions of advertising dollars every year is greatly determined by the results of these often faulty surveys.

Did you know that in Lexington, Kentucky the audience ratings for local radio stations are derived from a survey of merely 0.25% of the population? Yes, out of nearly 400,000 adults age 18 and over, statistics for radio listening are determined by the responses of about 1000 people.

To put that in perspective, let’s say you are conducting a survey among 400 people in a room. Only one person out of those 400 participates in the survey. That person’s responses will then represent the other 399 people in that room. Do you really think one person is enough to accurately represent a population of 400?

We haven’t even touched on the method used to gather this precious data. Participants in the radio measurement survey receive a “diary” in which they are expected to accurately report what radio stations they listen to, at what times they listen, and for how long. Do you think there may be some human error involved in this method?

Unfortunately, TV ratings are also measured by written diaries in most of the country. Some larger markets employ the use of an electronic “people meter” attached to the TV set which accurately tracks what shows are being watched and even who is watching them. Technological advances such as the Portable People Meter will revolutionize the way TV and radio audiences are measured in the coming years.

The audience measurement methods discussed above are examples of quantitative surveys. But what about qualitative surveys which attempt to paint a portrait of a consumer based on their shopping habits, travel destinations, and whether or not they own a dog? Turns out there’s much room for improvement in this area as well.

One of the larger qualitative research companies uses a two-part survey to obtain data. First, they conduct a telephone survey to find out your radio listening habits. Then-with your permission-they send a 28-page questionnaire covering every conceivable purchase decision known to man. Oh yeah, they too send you a diary to report your TV viewing habits.

If advertisers would spend a fraction of the time on developing their message as they spend on analyzing ratings and qualitative data, they would be blown away by the results.

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