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NY Attorney General Probes Arbitron's PPM
US Attorney General Andrew Cuomo has begun an investigation into the accuracy of Arbitron's Portable People Meter (PPM) methodology. The move follows pressure from the Association of Hispanic Advertising Agencies (AHAA) and a group of minority radio broadcasters.
Last week, the broadcasters petitioned the Federal Communications Commission (FCC) to conduct an enquiry into the PPM system, which they say they believe does not adequately represent African-Americans and Hispanics in the US, and yields 'faulty and inadequate' results. The alliance fears that a plunge in ratings could lead to a decline in ad revenue which would threaten the viability of stations that serve minority communities.
In response to the complaint, Cuomo's office has asked Arbitron for PPM documents dating back to 2003 and given the ratings giant until September 19 to produce the paperwork. Cuomo said in a letter to Arbitron that a full investigation of the PPM methodology is warranted before these 'sudden and possibly irreversible consequences are imposed on minority radio stations'.
Last November, following concerns that radio ratings sample sizes were too small, Arbitron delayed the roll out of PPM in nine of its planned markets. However, the firm now intends to go ahead with its plans to commercialize the service, and has announced a sample program, which aims to increase sample sizes prior to roll out.
Frank Flores, General Manager of Hispanic station WSKQ, says that unofficial PPM ratings released over the last year show that his firm's ratings have dropped 50%-60% in its average quarter-hour share.
'At a time when the Hispanic population is growing, it defies logic that the No 1 Hispanic radio station would lose that much of its audience,' says Flores. 'We're talking with Arbitron, and trying to tell them they aren't properly measuring several communities yet. We don't want PPM to become official until that is fixed.'
Jim Winston, Executive Director of the National Association of Black Owned Broadcasters (NABOB) adds his belief that intervention by the State of New York will provide 'the kind of attention this matter deserves'.
However, Arbitron reiterates its argument that the PPM service is 'fair, reliable and fully represents the diversity of New York radio markets'.
Web site: www.arbitron.com .
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