THREE MORE AD AGENCIES SIGN UP FOR PPM Katy Bachman – Mediaweek Unlike radio groups, which have been slow to embrace Arbitron’s proposed portable people meter-based ratings service, agencies have been signing contracts. In addition to The Interpublic Group, which announced Wednesday its agreement to use the PPM service when it becomes available, WPP Group, Publicis Groupe, and Aegis Group have also signed agreements with Arbitron.
Like IPG’s agreement, Arbitron’s deals with WPP, Publicis and Aegis cover the U.S.-based radio planning and buying activities for all the companies in the group such as WPP’s Mediaedge: cia, MindShare and Mediacom, Publicis’ Starcom MediaVest Worldwide and ZenithOptimedia, and Aegis’ CARAT USA.
The PPM would replace Arbitron’s current diary-based service, considered antiquated in today’s fragmented, digital world. Despite the diary’s shortcomings, radio groups have been reluctant to sign PPM contracts, concerned about paying a 60 percent rate increase for lower average ratings. Two groups, Cox Radio and Radio One, have refused to participate in the Houston demonstration, likely to be the first PPM market as soon as April.
Agencies hope that by throwing their support behind PPM it will send a clear message to the radio industry. “It’s time for broadcasters to wake up and come into the 21st century. This is good for their business,” said Susan Nathan, senior VP and director of media knowledge for Universal McCann, an IPG company. “We’re learning better how radio works,” she added.
With enough support, Arbitron’s current proposal is to roll out the PPM to the top 50 markets over the next five to seven years. |