Arbitron Commercializes PPM in Chicago, PPM Coalition 'Outraged'

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: The PPM Coalition on Monday afternoon (Oct. 6) lashed out at Arbitron's decision to release the eight new PPM markets on Monday morning as "currency," two days ahead of schedule. : : Saying they were "outraged" at the ratings company's decision, the group -- whose members include the Association of Hispanic Advertising Agencies, Border Media Partners, Entravision, Inner City Broadcasting, the Minority Media and Telecommunications Council, the National Association of Black Owned Broadcasters, SBS Radio, the Spanish Radio Association and Univision Radio -- said in a statement, "[Arbitron's] action is in blatant disregard to the concerns from dozens of entities including the radio industry, advertisers, the New York attorney general's office, members of Congress, civil rights organizations, minority-owned stations and community leaders." : : In an Oct. 2 letter to Arbitron, N.Y. attorney general Andrew Cuomo said he would file suit against Arbitron to stop the company’s rollout of PPM in the Empire State. He alleges that Arbitron has engaged in “unlawful and deceptive acts and practices” in connection with “the marketing and planned commercialization in New York of the Portable People Meter (PPM) methodology.” : : The Coalition's statement went on to say: "The implementation of PPM will have a tremendously negative impact on minority communities nationwide. Arbitron's defective system reports inaccurate listenership data, which in turn drives lower advertiser rates, making it difficult for ethnic and urban stations to survive. The unaccredited methodology will severely damage the diversity of voices and viewpoints on our nation's radio airwaves, posing a significant threat to minority communities with the potential to have a devastating impact on local economies. In fact New York and Philadelphia have been audited twice by the MRC and denied accreditation twice. : : "Unfortunately we are not surprised by this action. Arbitron is a completely unregulated monopoly. Absent accreditation, Arbitron is free to impose its will at the expense of accurate and reliable data in the market that counts minority communities. The PPM Coalition is going to continue to fully cooperate with regulators, Congress, the civil rights community, state and municipal authorities and other stakeholders to bring some accountability to Arbitron.” : : The newest PPM currency markets include New York, Los Angeles, Chicago, San Francisco, San Jose, Nassau-Suffolk, Middlesex-Somerset-Union, and Riverside-San Bernardino, joining Houston and Philadelphia. : : Arbitron said Monday that the PPM radio audience estimates for these new markets should be used as the basis for buy/sell transactions of radio commercial time among subscribing stations, agencies and advertisers. In addition, the July and August PPM survey months, which Arbitron had previously released as “pre-currency” information, are now designated as “currency” data. The spring 2008 diary-based radio audience report (April 3-June 25) is no longer deemed “currency” for buy/sell transactions. : : Commenting on the early PPM rollout, Arbitron chairman/president/CEO Steve Morris says, “We are commercializing our Portable People Meter radio ratings services in these markets in order to meet our obligations to our customers and to the radio industry.” : (Mike Boyle, Radio & Records)

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