Measurement Split Worries Radio Ad Industry

With eight days to go until Arbitron launches its first PPM service in Philadelphia, two groups representing more than a quarter of the market's radio ad spend are still not on board. Media agency comments suggest the problems may jeopardise all radio ad buying in the market.

Clear Channel and Radio One, which between them operate nine radio stations in the area, have not committed to encoding their broadcasts for PPM measurement. In 2006 Clear Channel called for the industry to explore alternatives to the PPM and formed a committee for the purpose. Arbitron meanwhile has signed up about 65% of the local market, including CBS Radio, Greater Media, WBEB-FM and Beasley Broadcast Group.

Stations not encoding by 11th January will not be included in the ratings and risk losing ad revenue from the likes of media agency Carat, which has given the PPM solid support and says it will leave stations which are not encoding out of its plans, according to www.mediaweek.com . The site quotes Mary Barnas, Executive VP and Director of Local Broadcast for Carat, saying that the company will only consider stations using PPM and could take more drastic action: 'If we cannot buy an effective schedule due to lack of proper ratings data, we will recommend against buying the market.' Barnas is meeting Clear Channel's senior management this week. Other media agencies have expressed uncertainty about their reaction if some major stations do not encode.

Looking longer-term, Arbitron has developed and is testing technology for the measurement of non-participating radio stations (see DRNO www.mrweb.com/drno/news5922.htm ) which could be in use by autumn 2007.

News of the problems will not please Peter Smyth, incoming Chairman of the Radio Advertising Bureau. Smyth, who is also CEO of Greater Media, this week said that radio has some 'serious housekeeping' to do in order to smooth the ad buying process, according to MediaWeek. He comments: 'We've got to get to electronic invoicing and electronic measurement. I don't know why we're jerking around on this'.

Arbitron is online at www.arbitron.com , and the RAB at www.rab.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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