Saturday, May 3, 2025

Nielsen's 3-Minute Rule Results In Uptick for Radio


A reported 15% AQH increase for the average radio station in Q1 2025 compared to Q4 2024, was cited recently by the Pennsylvania Association of Broadcasters, and is driven by Nielsen’s January 2025 shift to a three-minute AQH credit rule in PPM markets. 

This change boosted AQH by +24% in PPM markets and +10% nationally, with the 15% figure likely averaging PPM and diary market performance. News events, younger demographics (+28% for 18–34), and formats like all-news and Urban Contemporary fueled the growth, enhancing radio’s advertising value and competitive edge over TV.

In January 2025, Nielsen updated its Portable People Meter (PPM) methodology in 48 U.S. markets, reducing the minimum listening time required for AQH credit from five minutes to three minutes within a 15-minute period. AQH measures the average number of listeners tuned in for at least three minutes in a quarter-hour, making it a key metric for advertisers and broadcasters. This “3-minute rule” was designed to capture shorter listening occasions, reflecting modern consumption patterns where listeners engage briefly, especially via digital streams or in-car radio.



Key impacts of this change:

  • PPM Markets: Nielsen projected a +24% increase in AQH listening in PPM markets, driven by a +19% increase in time spent listening (TSL) and a +4% increase in cumulative audience (cume). Younger demographics saw higher gains, with 18–34-year-olds experiencing a +28% AQH increase, and 18–49 and 25–54 groups seeing +27% increases.
  • National Impact: When combining PPM markets (about two-thirds of the U.S. population) with diary markets (the remaining third, unaffected by the change), total U.S. AM/FM radio listening was expected to rise by +10% in 2025.
  • Specific Evidence: A March 2025 Radio Research Consortium (RRC) analysis found that 44 of 45 PPM markets saw increases in AQH Persons or TSL in January 2025 compared to January 2024, with seven markets hitting post-pandemic highs for both metrics. Public radio station WXPN, for example, saw its AQH share rise from 2.2 in 2024 to 2.9 in January 2025, a 31.8% increase.

The 15% AQH increase cited by the Pennsylvania Association of Broadcasters likely represents an average across all radio stations, blending the +24% PPM market growth with minimal or no change in diary markets. This figure is consistent with Jon Miller, Nielsen’s VP of Audience Insights, who reported a 14% AQH increase from January 2024 to January 2025, though he noted an expected 8–9% attrition in listening over 2024, suggesting the net gain aligns with the projected range.


Factors Driving the Increase

  • Nielsen’s 3-Minute Rule: By crediting three-minute listening occasions, Nielsen captured nearly a quarter of listening sessions (three to four minutes long) previously uncounted under the five-minute rule. This particularly boosted formats with frequent tune-ins, like news and youth-oriented music (e.g., Spanish Tropical, Hot AC, Urban Contemporary).
  • Major News Events: Q1 2025 saw heightened interest in news due to events like the U.S. presidential inauguration and policy changes (e.g., Trump’s executive orders). All-news stations saw the largest AQH gains, with drive times and weekends also showing significant jumps, reflecting increased listener engagement.
  • Seasonal Shifts: While Q4 2024 benefited from a 9% audience share increase for Adult Contemporary (AC) due to holiday “all-Christmas” programming (+17% among 18–34-year-olds), Q1 2025 likely sustained listenership through news and talk formats. The transition from holiday music to regular programming didn’t deter listeners, as political and social developments drove tune-ins.
  • Demographic Trends: Younger listeners (18–34) and diverse groups (e.g., Hispanic audiences, +13% AQH) showed stronger growth, reflecting radio’s appeal in PPM markets with urban and diverse populations. Formats like Rhythmic CHR and Urban Contemporary saw significant gains, appealing to these groups.

No comments:

Post a Comment