For Immediate Release

New Approach to Audience Measurement Yields More Powerful Data

Wednesday September 19, 2007

For years media has been measured demographically, i.e. media consumption has been defined by broad age groupings of listeners. Primarily used in media by advertising agencies to properly target their clients' products, demographics have outlived their usefulness in many cases as broad age groups no longer effectively describe the complicated consumer landscape that has developed in recent years.

I had the recent pleasure of meeting Phil Goodman, President & CEO of Genergraphics and a long-time radio and advertising genius. Phil has developed what he calls "Genergraphics", a better, more effective way to understand generational differences of consumers. He differentiates Genergraphics as follows:

Demographics: Shows the age, gender and income of people. Demographics can also tell us what products people buy and how often they buy them.

Psychographics: Shows why people do what they do based upon the lifestyle and patterns of their generation. Psychographics also tells us how we can get them to do it for us.

Genergraphics®: Genergraphics can do what psychographics does based upon mind set, plus it can tell what influence one generation has or does not have on another generation. Genergraphics allows us to market to one generation without alienating another.

With this new approach to understanding generations of consumers, Bridge Ratings has introduced a new audience measurement product called "GenerRatings" which is structured to give clients a true reading of their listeners as defined by the more focused combination of both audience demographic, lifestyle and mind set.

The results yield a startling difference between the data produced demographically and that produced Genographically.

For example, in a major market competitive radio battle, the market's Oldies station has recently revitalized its format and music mix and demographically-produced audience measurement shows that the Oldies station's loyalty or "Favoriteness" has improved nicely.

Yet, while it has improved, the entire market is very competitive and ratings 'compression' has occurred in which only a few percentage points differentiate stations. Demographic audience measurement no longer is able to reflect statistically significant audience differences between stations that are separated by tenths of a point. A more sophisticated and sensitive tool is needed.

Enter GenerRatings.

The GenerRatings analysis of the same market shows marked and significant differences.

Using the Oldies station's generational target of Boomers - those born between 1946 and 1964 - the Oldies station's true dominance of this generational audience is clearly evident in the following chart that compares its GenerRating trends to traditional demographic trends:

When using typical demographic break-outs (25-54 Adults, 35-64 Adults), the Oldies station in this sample market shows some improvement in Favoriteness - especially when using the older demographic spread of 35-64.

Generationally, the numbers speak volumes. The Boomer generation is not only defined by its birth-years, but screening for this particular sample was defined by mind-set as well as lifestyle - key areas of differentiation for advertisers and station operators alike. The added dimensionality of this audience definition provides a refined understanding of a radio station's audience loyalty.

Let's look at how this sample Oldies station that we'll call KAAA, looks compared to other market stations that also appeal to this same Boomer generation:

While the station demographically leads its competitors, GenerRatings highlights the station's dominance over other Boomer-focused stations when lifestyle and mind set are added to narrowed demographic information.

Generation X

Those born between 1964 and 1976 are also known as "Generation X", so-called the "invisible generation" who followed the socially-reconstructing Boomers. "Generation X" is noted as one of the most entrepreneurial and tech-friendly generations in American history as they've driven a majority of the Internet's growth and ingenuity from day one.

Today "Generation X" falls into the 31 to 43 year old demographic.

Media which tends to target Gen-X often misses the boat because of demographic targeting. The following chart shows how audience measurement of a Gen-X targeted radio station differs when measuring "Favoriteness" (loyalty) in standard demographics versus the generational approach of Bridge Ratings' new "GenerRatings" in one of the U.S. top markets.

A standard advertising buy for this Gen-X group would typically be found in 25-49 and 18-34 year old targets. Bridge Ratings' trending for this particular station shows the station losing loyalty over the six-year measurement period.

However, when measured generationally, the station looks much more dominant.

Echo Boomers/Generation-Y

Also known as the Millennials, the Echo Boomers were born immediately after "Generation X" and grew up with many world-changing events including the rise of mass communication, the Internet and the 9/11 terrorist attacks.

Generation Y are primarily children of Baby Boomers. The core of this generation is a five-year span between 1989 and 1993 when for the first time since 1964, the number of live births reached over million.

A notable demographic shift should begin to occur in 2011 when the oldest Boomers hit 65 years of age. As Boomers retire, more members of Generation X will be expected to take roles in middle and upper management and the large membership of Generation Y should take up positions in the lower half of the workforce.

From an audience measurement perspective, the 18-34 year demographic has been most commonly used to target this generation, but as is profiled in the following chart, 18-34 does not effectively reach the key members of "Gen-Y" which has two primary cohorts: 13-21 and 22-31.

Because of this split, Gen-Y is a more difficult generation to target simply because they are more of a moving target than previous generations, i.e. unlike Boomers and Gen-X, Gen-Y consumers are finding their entertainment through a variety of technical sources besides traditional radio. The Internet, satellite radio and MP3 players in particular are creating high levels of difficulty in targeting this generation.

Regardless, generational measurement through Bridge Ratings' GenerRatings shows that the two cohorts signified by the blue and red trend lines below, have higher loyalty/Favoriteness scores in relation this major market's Alternative Rock radio station than is reflected in measurement using traditional demographic age cells.

Final Thoughts

With the introduction of "GenerRatings", Bridge Ratings is bringing a new layer of audience understanding to the broadcast industry. As these sample market studies have shown, when generational age focus is coupled with lifestyle and mind set preferences, radio station appeal is heightened, consumer targeting is simplified and both advertising and station programming content will be more effective with these new tools.

Traditional demographic targeting is simply no longer an effective manner for advertisers to reach consumer targets. Advertising for products and services should be customized generationally in order to be significantly more effective.

For more information about "GenerRatings" and how your company can benefit from an analysis, contact Dave Van Dyke at Bridge Ratings at dvd@bridgeratings.com or by calling 818.291.6420.

*Sample = 2702 consumers 13+
Methodology: Random digit dial telephone interviews, one person per household.

Sample error = +/- 1.9%