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Arbitron Admits Errors, Promises Bill Reduction
Following complaints from clients about the audience measurement firm's failure to meet in-tab sample sizes in Houston and Philadelphia in July, Arbitron has issued a client letter committing to issue 'sample guarantees' from 1 October 2007.
In the letter, the firm admitted that it is not hitting its sample targets in both markets. Arbitron CEO Steve Morris explained the problem: 'While sample sizes in Houston and Philadelphia debuted at or close to target, the total panel size dropped over the summer as we introduced a new 'tough love' panel-management approach. As we began removing panelists at a faster pace, we were unable to recruit and install new panelists quickly enough to offset the loss.'
He confirmed that in July the firm was 193 panelists short versus its average daily target of 1,361 in Houston, and 179 panelists short versus its 1,530 average daily target in Philadelphia.
To counter the complaints, Arbitron has introduced the 'PPM Sample Target Guarantee', which promises a deduction from subscribers' monthly bills if the firm falls below the target sample size for their market. Morris said that a series of initiatives have been put in place to focus more tightly on the in-tab sample, and added that this should establish 'reasonable parameters'. The firm is also adding extra quality assurance procedures to prevent future errors and uncover potential issues before data is sent to clients.
Arbitron is currently recruiting new panelists in Houston and Philadelphia and hopes to have the in-tab samples up to speed by early October. Morris is pleased that the firm is having some success with ethnic groups, but is not doing so well with young persons of all races - which he says is especially challenging in Philadelphia.
If the problems persist into the autumn, discussions with Arbitron's Radio Advisory Council, composed of representatives from its leading clients, will determine the size of the client refunds.
In June, following criticism of the cost and viability of Arbitron's Portable People Meter (PPM) technology, Clear Channel Radio finally signed a multi-year deal to use the ratings to track its listener habits in June (www.mrweb.com/drno/news6967.htm ).
Arbitron is on the web at www.arbitron.com.
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