U.S. Media Audit Leader Lauds Radio Industry’s Accountability Initiative
ST. LOUIS, MO., June 3, 2008 . . . Last week, the Radio Advertising Bureau (RAB) passed a resolution recommending guidelines to bring accountability to local radio, post-reporting of actual ratings delivery and offering guarantees to assure advertisers will be compensated when posted delivery falls short of those guarantees. While the resolution brings radio performance accountability into line with long-accepted practices in television and print, Media Management, Inc. (MMI), North America’s leading media audit firm, reports that it has provided radio accountability audits including schedule post performance for more than four years.
Historically, the lack of guarantees associated with advertising buys on local radio stations contributed to stagnant revenue and an inability of local stations to obtain their “fair share” of national advertiser spend. Now, with the support of the RAB and other key groups, the industry is catching up to what TV, print and MMI have known for years – greater accountability will help revitalize the radio star.
Over the past decade, stations have struggled to increase radio advertising revenue, due in great part to a lack of the accountability that posting and guarantees will bring as well as a host of audience measurement issues that Arbitron and its clients are addressing via Portable People Meter℠ (PPM℠) and other initiatives. The impact of a radio campaign has been less measurable and the results not guaranteed, leaving clients to question the return on their investment. For its clients, MMI has helped surmount these obstacles by conducting radio accountability audits which have aided in assessing whether they got what they paid for and laid the groundwork for developing “best practices” in radio buying and stewardship.
“It’s no secret that spot radio has been struggling for some time,” explains Larry Goldstein, former Chief Media & Research Officer at MMI. “Advertisers’ perceptions about radio are that there is no accountability to reinforce their confidence in the investment. Schedules are seldom posted and delivery is not guaranteed, so how can advertisers defend radio as a key part of the media mix? Oddly enough, there is ample evidence that radio is or can be effective. It’s the accountability that is lacking.”
For MMI the solution is simple. The firm has been counseling its clients on best practices for thirteen years, encouraging them to negotiate guaranteed buys, auditing agency performance, and asking several critical questions: Did each station deliver? Did spots run as ordered? In compliance with client buying guidelines? If the answer is no to any of these questions, what actions were taken? By assessing potential under-delivery for its clients, MMI supports them in seeking restitution due.
MMI clients that have embraced this approach have successfully improved their overall spot radio delivery, schedule rotations and pricing (due to securing delivery guarantees). MMI is posting schedules for general market, Hispanic and African American market segments.
MMI whole-heartily supports the efforts of the RAB and broadcasters in this important endeavor. This move toward greater accountability will ultimately benefit the medium.
About MMI
Media Management, Inc. (staging.mediaaudit.com) is a completely independent media auditing firm, headquartered in St. Louis, offering genuine objectivity with no vested interest in the outcomes of their audits. MMI’s client base, which counts 16 of Ad Age’s “Top 100” advertisers as clients, includes leading advertisers in the automotive, financial services, consumer packaged goods, retail, restaurant, and entertainment sectors.
