ARBITRON BACKS OFF PPM ROLLOUT Katy Bachman and Paul Heine – Billboard Under intense pressure from radio stations, Arbitron said late Wednesday (March 29) it agreed that it would not turn on the portable people meter service in Houston without Media Rating Council accreditation. Both Arbitron and the Radio Advisory Council are still debating whether MRC accreditation would be a prerequisite for rolling out the PPM in Philadelphia in Jan. 2007 and subsequent markets.
The decision, which could derail the timing of the entire rollout of the PPM service to the top 50 markets, was made following Arbitron's meeting Tuesday and Wednesday of its Radio Station Advisory Council in Washington, D.C.
"The council was of the opinion that this product was so important that it really needed to first get the good housekeeping seal of approval," Radio Station Advisory Council chairman Bill Kelly told Billboard Radio Monitor. "It was the council's strong feeling that accreditation was a must before the PPM became the ratings currency in Houston."
Kelly--VP/market manager for Clear Channel Radio's Youngstown, Ohio cluster--said all parties are committed to helping make accreditation a speedy process.
Arbitron had originally scheduled the Houston PPM service to go live July 1. The ratings firm completed a MRC audit in February, but the MRC is still in the process of reviewing the audit for accreditation. Accreditation could come before July, or it could take several more months. Arbitron agreed to wait at least 60 days after receiving accreditation before designating PPM data in Houston as the "currency." For Arbitron to meet its original July 1 PPM launch date in Houston, the company would need to receive accreditation by June 15.
While advertisers and agencies have signed for the PPM practically en masse, so far, not a single Houston broadcaster has signed for the PPM service. Two companies, Cox Radio and Radio One, have refused to encode their signals, rendering the service impotent.
To further complicate the radio industry's transition to electronic measurement, Clear Channel's electronic measurement evaluation committee has opened the door to two potential competitors to Arbitron. Although Media Audit/Ipsos' smart cell-phone based technology and MRI /Eurisko's "Media Monitor," (a portable meter that uses a matching technology), have yet to conduct a single U.S. test, Arbitron's decision gives both research firms more time to get up to speed.
Asked about the recommendation's impact on Arbitron's potential competitors, Kelly said, "We know they exist and we know they're part of the process. But council deals strictly with issues regarding Arbitron."
The Radio Advisory Council is made up of a diverse group of radio companies, including representatives from Arbitron's five largest clients--Clear Channel, CBS Radio, Entercom Communications, Cox Radio and ABC Radio--which each hold a corporate seat. However, many smaller companies, including Millennium Radio and Dick Broadcasting, are also represented.
Arbitron's Advertiser/Agency Advisory Council met Wednesday afternoon in a concurrent session with the Radio Station Advisory Council, and is meeting solo with Arbitron on Thursday. |