Department store magnate John Wanamaker once famously said: “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.” In this breakthrough study, Edison Media and Arbitron have encoded the TV commercials run by radio stations and matched them against PPM listenership. Does a television commercial get non-users to try a radio station? Does it turn lighter listeners into heavier ones? They also looked at other marketing efforts in an attempt to finally crack the code of what “really works.” For the first time: real answers on how to best deploy your station’s resources.

1. Tracking Encoded Television Ads with PPM Are Half My Advertising Dollars Wasted?

2. John Wanamaker “ Half the money I spend on advertising is wasted, the trouble is I don’t know which half”

5. How does advertising work? Dates of Campaign “ The Book” For Radio…

7. With new technologies… A revolution in the measurement of advertising and marketing effectiveness is at hand

8. For media advertising… The PPM enables the revolution

9. What PPM always does: Encoded Audio

10. What PPM is already doing: Encoded Audio Encoded Audio

11. What PPM might do in the future: Encoded Audio Encoded Audio Product Encoding

12. For this experiment, we encoded a radio station’s TV spot Encoded Audio Television Commercial for a Radio Station

14. Philadelphia

16. 8,634 Detections! Almost exactly an average of three detections per Philadelphia PPM panelist

17. Who saw the B101 spot?

18. What portion of Philadelphia saw at least one commercial in the campaign? Week January - March 2008 # of Respondents seeing B101 Spot at least once 62% of panelists saw at least one spot during the campaign 26% 53% 61%

19. Number of B101 spots seen Number of Spots Seen # of Respondents One respondent saw the ad thirty-six times in these 12 weeks!

20. Who saw the B101 spot? (Women 25-54) Base: Women 25-54

21. Number of B101 spots seen (Women 25-54) Number of Spots Seen # of Respondents Base: Women 25-54

22. Number of B101 spots seen over time Week January - March 2008 # of Respondents One Two Three Four Five +

23. People who saw the ad spent a little more time with B101 Average Quarter Hours (AQH) Didn’t see any spots Any Detections

24. People who saw the ad more spent more time with B101 Average Quarter Hours (AQH) Didn’t see any spots 5+ Detections

25. Three Classifications of B101 Listeners B101 Light/Non-Listeners B101 Moderate Listeners B101 Heavy Listeners 0-9 QHR in week one 10-19 QHR in week one 20+ QHR in week one

26. Heavy listeners to B101 accounted for most QHs in week 1

27. B101 Listening by classification during the campaign Week AQH Heavy Listeners Moderate Listeners Light/Non-Listeners 4.1 7.3

28. By the end of the campaign, previously ‘moderate’ listeners were contributing more Week 1 Week 12

29. B101’s first preference AQH showed moderate growth through first quarter P1 AQH to B101 Jan Feb Mar Did the TV spot help re-gather the core after Xmas music?

30. B101 Listening (45-54 year-old male panelist) Week (0 spots seen) AQH (1 spot seen) (2 spots seen) (3 spots seen) (3 spots seen)

31. Philadelphia

33. 5,121 Detections Just under an average of two detections per panelist in Philadelphia

34. Who saw the WJJZ spot?

35. Only a small portion of those exposed to the WJJZ ad tried the station Base: Saw at least one ad

48. Tracking Encoded Television Ads with PPM Are Half My Advertising Dollars Wasted?