Small Market Revenue Measurement NOW

I have long advocated the measurement of small market revenue performance with the same rigor and credibility as the RAB-Miller, Kaplan revenue reports from larger markets. I have not been alone in this, but these days, with the sad news coming from larger markets - which news is, for lack of anything better, applied to smaller markets as well - the small-market-revenue movement is picking up steam.

A number of factions - including measurement companies like Miller, Kaplan and BIA; industry associations like the NAB and the RAB; public-spirited industry vendors and broadcasters in all size markets - are working together to make this happen.

It now looks like the prime mover will be the RAB. I’m told that Board Chairman Peter Smyth has appointed Entercom Regional Vice President and RAB Board Vice Chair Weezie Kramer to head a committee to study the issue, ensuring that smaller markets are represented in proper proportion. I spoke with President/CEO Jeff Haley last week, and he assured me that the RAB is very focused on and committed to this, and that some form of all-encompassing measurement should be in place for 2009, if not sooner. He told me, "I believe it's our industry right to count every ad dollar received. Anything less sells us short."

This is good news indeed. CL King analyst Jim Boyle estimates that small market radio revenues account for about 20% of the radio total. Right now that total is around $21 billion, says the RAB ... but I think that number will be larger when small market radio is fully counted. That’s $4-5 billion of radio revenues that we need to count!

My concern in all this is the definition of small market radio. In speaking with various people in the industry, definitions include “markets 26+,” “markets 75+” and “markets 100+.” These definitions, in my opinion, are off the mark, and they aren’t useful in the present context. A more realistic definition is “markets 150+,” which pretty much takes up where the Miller, Kaplan study now leaves off.

Everybody seems to understand that unrated markets must be included, but even in that realm, we must be inclusive. The most cost-efficient way to survey these markets is, as at least one company is proposing, to identify key small-market groups and capture one number from each, representing all their markets. But that approach would omit smaller groups and independent operators, who - if our newsletter subscriber list is any indication - are the backbone of small market radio.

I will continue to work with our industry leaders on this, and I will continue to keep you informed. For your part, I and a bunch of other people need your support and commitment to participate!