I have held off on commenting, posting, or bloviating about what is already the most uttered word radio in 2015 – Voltair. Until now.
Like talking politics at a dinner party, this topic about radio ratings on steroids is something that many broadcasters are tied up in knots about. And for good reason.
Before all hell broke loose in the trades, conversations and speculation about Voltair were cautious, mysterious, and hush-hush. Throughout most of this past fall, it was very much a secret to many broadcasters. No one wanted to say or give away too much about a possible hole in the ratings fence.
But since the Telos presentation at the NAB this past spring in Las Vegas, Voltair has been outed. The attention these black boxes has garnered in the trades and at industry gatherings over the past few months has made it a topic that, while painful to many, is an unavoidable one. Voltair fascinates the industry for many good reasons, in much the same way people whisper about the black arts.
So Voltair is on everyone’s mind and generating a lot of press; let’s explore some of the main issues revolving around this big story and the technology behind it.
- We don’t know the true impact and full extent of Voltair on PPM ratings.
- We don’t know how many stations are using the Voltair technology, who they are, and in which markets they’re using it.
- We don’t know if Voltair is more advantageous to some formats, music types, or personalities, and harmful to others.
- We do know that if the radio industry and Nielsen don’t get to the truth about Voltair and address these and other issues, then the credibility and revenue foundation of the industry is at risk.
So, there’s a lot of noise, but there is also a lack of indisputable facts and a great deal of mystery still surrounding Voltair. And consequently, the industry needs to clarify the true facts about Voltair and its ability to juice up encoding. Quickly.
Those who have Voltair – and who are willing to talk about it – will mostly tell you they’ve seen a positive impact. But based on what? The ratings went up? As we know, lots of things make the ratings go up…or down.
How well does Voltair’s technology fill in the blanks in the encoding process, and how much of this listening improvement is due to the same factors that have moved the ratings since their inception? No matter how skilled a programmer, it has always been something of a a mystery since the dawn of ratings to determine the specific forces and conditions that drive them north or south.
From signal to execution to music flow to weather to competitive pressures to the sample frame to local market forces, the variables are many. Gathering ratings is an inexact science. In some ways, Voltair has overlayed itself on that confusion.
Now a new expose in the well-respected FiveThirtyEight by Carl Bialik blows up this conversation and takes it outside of the radio industry trades and into the mainstream press. It suggests that the Smooth Jazz format was, in fact, a victim of faulty meter measurement.
Our company was clued into the Voltair technology last summer. As consultants, we weren’t just radio pundits having intellectual conversations about a mysterious new black box. We live and die with the ratings just like the radio people working inside stations. We are invested in the results, and much of the time, they determine our fate, too.
So over the fall and into the new year, I found myself engaged in veiled conversations with our clients in PPM markets. They often went something like this:
Me: I’m going to say a word to you that you’ll either immediately know what I’m talking about or we’re about to have an interesting conversation.
Client: OK, go ahead.
Me: Voltair
Client: You mean the French philosopher?
Of course, other versions of this same conversation ended with the client laughing and saying, “We just ordered four boxes. Don’t tell anyone.”
Now the word is that 25-Seven Systems has sold 600 of these boxes that some say is like Viagra for PPM ratings. The buyers are broadcasters who understandably choose to keep their purchases to themselves – and for good reason. Part of the story behind Voltair and its impact on metered ratings is that no one knows – save for 25-Seven – who actually is running the box in their rack rooms.
Until Voltair came along, concerned PPM discussions have been about the efficacy and accuracy of metered ratings, specifically the device’s ability to recognize codes of different styles of music, voice, and audio in general. Critics have pointed to the inaccuracies of PPM, exacerbated by the assertion that the meter fails to capture all audio a respondent is exposed to. The belief is that some types of music or even specific personalities encode better than others.
No methodology is able to achieve 100% accuracy. And clearly, many of the people whining the loudest about Nielsen and PPM have forgotten what it was like to live with diary measurement. In the UK, FiveThirtyEight reports that RAJAR – the Radio Joint Audience Research – rejected the PPM methodology in 2004, and elected to update the diary system by having respondents log their listening online.
Jerry Hill, RAJAR’s CEO, avers that “One of the prices you pay for granularity and data is that a lot of your listening ends up just disappearing.”
Perhaps, but if you’ve talked to anyone in Wichita or Pensacola lately, chances are they’ll tell you that the diary methodology – let’s just call it recalled listening – has its downsides, too. It’s not just “lost listening” that’s the probem – it’s usage that doesn’t always square with reality.
That’s because every ratings methodology is flawed in some way. It’s why they call them “estimates.”
Two true stories:
As the Research Director at WRIF in the late ‘70s, my charge was to extol the virtue of our Arbitron diary ratings when we had a good book. And to find “holes” and other unbelievable ratings stories when we had a lousy quarterly ratings performance. It was never hard to find absurd findings in the book like these:
“How can we have absolutely no Men 18-24 during middays on Sunday?”
Or “How is it possible that this AM daytimer became the #2 female 25-34 station in one book?”
Or “How can a Country station move from #17 to #1?”
Easy peasy.
I remember one year when W4 – which was Country at the time – had a major technical problem, forcing them off the air for several days. As a research guy, I couldn’t wait to see the impact of this catastrophic event on the ratings. During those days, Arbitron offered the AID system (Arbitron Information On Demand), allowing subscribers to request their desired demographics and time period – then wait overnight for the results to upload so you could access them in the morning.
When I saw in horror that W4 managed to post decent ratings during a period when they were off the air, it was a stark reminder the diary methodology was far from a perfect reflection of listening reality. Many simply wrote them down even though it was not technically possible to listen.
I also remember the converse was often true. One year, WTWR (Tower 92) snared the rights to broadcast the soundtrack for the Detroit/Windsor “Freedom Festival” riverfront fireworks show one year. Their outspoken GM, Tony Salvadore, was convinced that with more than a million attendees and his station blaring through loudspeakers all over downtown Detroit, the station would have a 20-share. Alas, it was another flaw of the diary methodology because people had to recall that it was, in fact, Tower 92 playing during “the rockets’ red glare.” Their rating book that summer was nowhere near as spectacular as the fireworks themselves.
So when people question PPM, the sample size, meters attached to ceiling fans and strapped onto dogs, and other ratings horror stories, it’s really no different than the agony of sifting through diaries in Beltsville, Laurel, or Columbia, and seeing mom fill out seven diaries for the family and the other inequities that occur with regularity because diaries have limitations, too.
Whether it’s exit polling or radio ratings, there is no perfect research. And PPM, like its predecessor methodologies, has its share of built-in imperfections. And in fact, most people in radio are willing to accept that reality.
But the intrinsic promise in any ratings contest is that every station has a fair chance to succeed – or fail. It is supposed to be a level playing field built upon a foundation of trust and credibility. How stations play the game (or game the system) has always been part of the arts, crafts, and voodoo of being a sharp programmer.
You could make the case that certain formats are more conducive to the diary methodology. Many Alternative programmers, managers, and owners always believed their core audience often failed to give them proper diary crediting.
But with PPM, there is that implicit belief that all formats, all announcers, and all sounds should have a fair chance to win or lose. The meter’s coding should be able to capture all dynamic ranges, from Delilah and Kenny G solos to Rush Limbaugh and Metallica.
That may not be the case, and that’s where Voltair has been allowed to shake up the system. Not all 600 stations that have purchased a box are experiencing higher PPM ratings. There are variables that go beyond settings and encoding that are in play here, too..
While 25-Seven proudly boasts that no one has asked for a refund, part of that may be due to the nature of radio owners and managers. Like gamblers in Vegas, they are always convinced that the next book, monthly, or weekly will be the one where they break through. Voltair ensures they have a chance to win, and that their fate will be dependent on their programming and marketing skills. Or at worst, the box allows them to keep up with their competitors who also invested in Voltair, making it a fairer fight.
There has been much disappointment with metered measurement almost from the beginning. The promise and hope of PPM were thrashed by a number of factors – the cratering economy as well as the disruption from other media options that have mushroomed over the past several years. The planets have lined up – but sadly, almost all of them angry, difficult, and confusing. The timing of the PPM methodology and its higher price tag couldn’t have been worse.
But encoding problems that lead to decreases in persons using radio puts the entire enterprise at risk. At a time when advertisers believe they’re seeing more accurate, accountable digital measurement, the broadcast radio industry deserves better.
So we’re in the middle of “The Year of Voltair” in radio, and it’s not been a good one as “half time” ends, and we begin the second half of the year. The final story and the true impact of this conundrum won’t be written in the rack room or on ratings spreadsheets. The true extent of the damage may be quietly whispered in ad agencies by buyers, planners, and account managers who are reading the vitriol, finger-pointing, and rampant speculation that is so common in radio whenever Arbitron, and now Nielsen, are discussed. The erosion of trust in the system is at the heart of the matter when it comes to radio and the way it is measured.
The real story behind Voltair is centered not on whether the box works, but on the credibility of the radio ratings themselves. The onus is on Nielsen to swiftly, accurately, and transparently study Telos’ technology – and the “Voltair Effect” – and make an honest determination of its impact and implications. The radio industry – from the Advisory Council to the MRC – would be best served by speaking in a calm but firm and unified voice to identify, solve, and address this problem, and then move on to radio’s real issues.
There is no bigger issue facing radio broadcasters than the credibility of its measurement. The radio industry needs and deserves answers and solutions to these questions…now.
“Doubt is an uncomfortable condition, but certainty is a ridiculous one.” – Voltaire
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Clark Smidt says
So well stated, fascinating and top priority. Electronics, sample size and delivered content must be accurately quantified. Thanks, again, Fred. http://www.broadcatideas.com
Fred Jacobs says
Thanks as always, Clark, for the kind words.
Dimitri says
Very well written article
The Voltaire quote: perfect ending
Perfect
Fred Jacobs says
Thanks, Dimitri. It’s a tough topic, to be sure.
DP says
So, what was the over/under until I posted something? 🙂 Great read..well written and thought provoking, Fred.
At the end of the day, you’re asking for what we’re all asking for as broadcasters.
A statement. It either works or it doesn’t. Period.
While no one should expect perfection from their ratings service, I would remind everyone that Arbitron/Nielsen is my second largest monthly expense in my cluster, as I would assume it is for most broadcasters. Granted, that’s our choice, but for us…I pretty much do expect perfection. I don’t have the option to tell our clients “well, most of your spots ran correctly” and neither should my single largest vendor.
Radio has massive challenges and most are certainly bigger in scope than the Voltiar issue. However,if the ratings measurement system is proven accurate, via Voltair or not..this is truly a “rising tide lifts all boats”.
As you so accurately point out (as does Richard Harker)..there should be one determining factor to a stations ratings success.
Popularity.
Fred Jacobs says
Dave, you’ve been a consistent voice in the matter and you recognized the erosive toll this can take on our partnerships and relationships with advertisers. As you note, there’s a lot on the line here, from cred to dollars. My hope is that broadcaster angst with this matter can be expressed calmly and rationally. Anger, indignation, and outrage are not strategies. That said, the industry needs answers…now. Thanks for keeping me on track.
DP says
Thanks Fred, well said..and thanks for helping our industry keep this a high profile topic!
Scott Hanley says
Thanks for the great read, Fred.
A chilling reminder of how media, in general, is built on imprecision. And from my experience with my colleagues in the newspaper business, going after “clicks” has proven to give diminishing returns – and damage the quality in the process. Build us a system and people will figure out how to game it. Build us a flawed system, and we will destroy the game, entirely.
You become what you measure. What is it we were trying to measure, anyway?
Fred Jacobs says
Yes, Scott, good questions. I’ve worked with enough smart (and devious) programmers over the years to know that any system or methodology can be gamed. And that’s just the way the game is played. We just need to be sure we all have an equal chance to manipulate the ratings. 🙂 Thanks for the comment and for reading our blog.
Bob Bellin says
Depending on the outcome of the research, this could prove to BE radio’s biggest problem. One of the first PPM “realities” was lower PUR numbers. I don’t want to channel Dateline here, but were they realllllleeee lower??? Bottom line is that this is easy enough to validate in relatively short order.
Large agencies complained that they needed immediate more granular data from radio in the wake of real time actuals from digital media. Radio bought into (and paid for) PPM and advertisers didn’t respond as they said they would. Now, the whole systems credibility is at risk, pending research into what Voltair does and doesn’t do. This could be a real mess.
The folks at Telos are smart and the guy behind this product is really smart. My guess is that they’re on to something, having discovered significant missed listening in the PPM system. Under-representing ratings is certainly less problematic than over estimating them, but radio needs a reliable way to measure its audience and one can only imagine how much lost revenue could be tied to PPM under delivering on radio use.
What a mess!
Fred Jacobs says
It’s not pretty, forcing cooler heads to prevail. And my hope is that now that the vitriol is out of the way, the time for the truly mature players in all this to get together, provide transparency, and ultimately, answers is right now. Thanks for these comments, Bob.
Rick O'Dell says
I hope you’re the cool head that sets the tone for the discussion going forward. Well put, Mr. Jacobs.
It took MLB almost a dozen years to achieve consensus on a plan to deal with PEDs. I wonder: How long will it take radio to do the same regarding Voltair?
Fred Jacobs says
Rick, thanks for the kind words. It is essential for the industry to address this issue in a calm, rational manner. I am not on any of the committees that consider ratings policy so like most of you reading our blog, I’m another radio guy with an opinion.
Tom Bigby says
Nice Article….. having been thru many top-40 wars on AM and FM stations I was the first person in the GM’s office wanting to buy the New Processor that would make our station louder and then spending many hours beating the Engineer over the head getting him or her to push the modulation….History repeats again except in this situation the all mighty ratings are involved…..The Box will not help bad content…
Fred Jacobs says
You are correct, Tom – which explains why all 600 stations hooked up to the new black box aren’t celebrating victories. Voltair isn’t going to help a lame station to any great extent. And yes, when I walk into a rack room in 2015 and see the Voltair box, it is a reminder of the limiters, exciters, compressors, equalizers, and the other “hot new things” we had to have. Thanks for the comment.
Max Tolkoff says
Wow, your “unpacking” skills were on full display here.I wonder: if the Voltair box actually proves to be effective, will Nielsen buy and/or license the technology? It would seem they would have to, if for no other reason than to give their clients better accuracy and transparency.
Also, love the Voltaire quote at the end. Nice touch. You are, and always shall be, the ultimate brain in the jar.
Fred Jacobs says
Max, thanks for checking in. Nielsen’s in a tough place with Voltair. Buying the technology is always an option, and it provides the technology to all subscribing stations. It will be very interesting to see how they come down on this gnarly issue in next week’s client call. And I finally remembered where I found that Voltaire quote – Dave Beasing. So it’s all about the circle of Jacobs Media life.