Four Major Radio Clients Sign Up for PPM

Audience measurement firm Arbitron has announced the signing of multi-year agreements with four of the USA's largest radio groups for its Portable People Meter (PPM) ratings service. However, the PPM's launch in its first market, Houston, will reportedly be delayed after it failed to get accreditation from industry body the MRC.

Emmis Communications, Bonneville International, Greater Media, Inc. and Lincoln Financial Media join a number of companies already signed up, including top two player CBS Radio. The new additions mean that three of the top ten radio groups and seven of the top twenty will use the PPM.

Arbitron plans to launch the system as its radio ratings service to the top 50 markets. In May, the UK's radio research body RAJAR announced that it would use the PPM for a pioneering panel for both TV and radio audience measurement (DRNO www.mrweb.com/drno/news5530.htm ).

Senior figures from all four of the new signers explained the decision in terms of wanting to move ahead, using available technology to sell the benefits of radio advertising and tap the great potential in the market. Don Benson, Radio Division President for Lincoln Financial Media, sums up: 'Radio needs to make the move to electronic measurement sooner rather than later, in order to grow our audiences and advertising revenue as well as to respond to the needs of our clients. We feel that our investment in the Arbitron Portable People Meter will pay long-term dividends for our company and for the radio industry as a whole.'

Pierre Bouvard, Arbitron's President, Sales and Marketing, says the company has 'listened respectfully' to the industry's requirements over five years, and 'consistently shared the results of our research with the entire industry. We are gratified that all our years of close cooperation are being rewarded with the support of thought leaders in the radio business.' The PPM has been in US market trials since 2001 and is scheduled to be used in the top 50 markets in place of the current paper and pencil diary method used since 1965. It uses a passive audience measurement device - about the size of a small cell phone - to track consumer exposure to media and entertainment including TV, radio, cinema and various place-based electronic media.


Delay in Accreditation

Meanwhile the PPM roll-out has reportedly received a setback from the industry's self-regulatory body, the Media Rating Council (MRC), which says it is not ready to accredit the system. The decision will delay the service's launch in Houston, which was scheduled for July as the first of the 50 major markets. In a letter to subscribers quoted on www.radioink.com , Bouvard and & Owen Charlebois quoted George Ivie, MRC's Executive Director, to stress the positive feeling still existing on both sides: 'Progress toward accreditation of the Houston PPM Service is being made. Our Audit Committee has requested additional information, analyses and follow-up actions from Arbitron in some focused areas, which has narrowed during the audit process. This type of interchange is not unusual for a first-time accreditation proceeding.' Ivie also refers to 'Arbitron's excellent cooperation in the accreditation process to date.'

However, the practical implications of the delay are significant. The letter says the firm will stand by its commitment not to replace diary-based radio ratings in Houston with PPM ratings until the accreditation is received. Arbitron will therefore continue with its old paper diary method in July, although it will also release data from a 2,000-person PPM ratings panel as a 'demonstration'. Furthermore, contracts with the radio company clients signed up to date are dependent on the rollout going ahead.

Arbitron is online at www.arbitron.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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