This is the fifth installment on Arbitron's new controversial electronic measurement, the Portable People Meter (PPM).
Broadcast Industry Concerns
In June, stating they “speak for the vast majority of the industry”, six major broadcast companies, Clear Channel, Cumulus, Cox, Inner City Broadcasting, Radio One, and Saga, sent a letter to Arbitron asking for improvements, reassurances, and an action plan concerning four issues.
1. During the debut month of PPM in a market, 100% 18-54-year old age sample guarantees. If the 100% is not met, the companies wanted a financial rebate.
2. Ages 18-34, 100% sample guarantee with financial rebates if the goal is not met.
3. Abandon the measurement of ages 6-11. Existing panelists in this demographic should be phased out.
4. Do not implement Portable People Meter (PPM) in any more markets until the Media Rating Council has given accreditation. Also, at no additional cost to broadcasters, the “best practices” methodology in Houston, be applied to all PPM cities. Many feel Houston received accreditation due to the successful combination of door to door canvassing and phone solicitation.
Arbitron’s Response
The cell phone only selection process is being revamped, and beginning with spring 2009, the improvements will be implemented in PPM and diary markets, 50 cities all totaled. Another 75 markets (diary cities) will be added in fall 09, raising the number of markets to 125.
A new study from Nielsen Mobile found that more than 20 million U.S. telephone households (17 percent) are wireless homes without landlines. The new research also suggested that one in five U.S. households could be cell phone only by the end of this year.
The Arbitron Radio Advisory Council has also guaranteed a ten-percent sample increase for ages 12+ and ages 18-54. These enhancements will be phased in until completion by the end of 2010. Theoretically, a larger sample increases the possibilities for a clearer ratings picture in a market.
Political Pressure
Recently, Senators Daniel Inouye, Hawaii, Patrick Leahy, Vermont, Dick Durbin, Illinois, and President-Elect Barack Obama sent letters to Arbitron, stating displeasure with PPM. All four want assurances the new system will not adversely affect any radio station.
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