Portable People Meter Review, Part Two

Uploading and Editing

Sometime between the docking of the PPM, and the household hub collection of daily data, there is an upload to a central computer at Arbitron. The uploading can occur anytime up until 4a. Once the information reaches Arbitron, there is an editing process of coded audio, to properly assign credit to individual radio stations. Remember, stations only get listening credit from an individual panelist if the person meets the minimum motion requirement: a panelist aged six to 17 has to carry the meter at least five hours a day; 18 and over, it's eight hours a day.

Morning Radio

There has been some confusion about morning radio measurement; many have said that much of the listening is not being reflected in ratings. Here is an example to clarify how it actually works: The alarm clock radio goes off at 6a and the meter, still docked, begins to record the coded audio. Though the panelist does not indicate motion until 7:30a, all the recorded exposure prior to motion will count for ratings, as long as the panelist meets the minimum exposure requirements for the Arbitron broadcast day of 4a to 4a.

Panel Expectations

For a family to remain a Portable People Meter survey household, participants must maintain a solid record of compliance with the rules. If successful, a household could conceivably serve the two-year panel maximum. However, if any one member of a family does not regularly carry the meter, the entire household will be dropped from the panel and replaced.

Causes for Panel Removal

There are numerous reasons for a household to be removed as panelists from the PPM survey. Reasons include a family's request for removal, a move out of the metro area, constant disconnection of the home phone (or cell phone, in a cell phone-only family) by the phone company, a radio station employing a member of the household, and others that may yet be determined. Panel relation's specialists stay in communication with survey households to encourage proper usage and answer any questions.

Accreditation

Arbitron's guinea pig markets for test marketing Portable People Meters have been Philadelphia and Houston, the latter was the only city accredited by the Media Ratings Council (MRC) until the recent accreditation given to the Riverside-San Bernardino market. Many credit the Houston nod to the recruitment process combining telephone solicitation with person to person, door-to-door canvassing. With the exception of Philadelphia Houston and New York, telephone recruitment, referred to as "Radio First," is used to select panels in all other PPM markets. About one-third of Houston panelists are recruited by the addressed-based person-to-person, door-to-door method.

Broadcast Industry Concerns

In June 2008, 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 is 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, 151 cities all totaled. This plan depends on the company completing the software development.

A new study from Nielsen Mobile found that more than 20 million U.S. telephone households (17%) 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 10% 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.

New York City Council voted unanimously to request that the FCC investigate PPM and the potential effects on the diversity of radio. In addition, the PPM Coalition, consisting of the Spanish Radio Association and the National Association of Black-Owned Broadcasters, filed a complaint with the FCC. Their concerns include panel selection methodology, non-Media Radio Council accreditation, media diversity issues, and possible financial effects on minority-owned or operated stations.

Legal Issues

New York State Attorney General Andrew Cuomo sued Arbitron over "alleged false advertising and deceptive business practices, implementing a Portable Meter system threatens to drive minority broadcasters out of business." Cuomo has attempted to discourage radio groups and advertisers from using the system due to flaws.

New Jersey Attorney General Anne Milgram also sued Arbitron over the Portable People Meter, charging violation of state laws on consumer fraud, advertising and discrimination.

Despite political pressure, eight more markets have implemented the Portable People Meter: Chicago, Los Angeles, Riverside-San Bernardino, New York City, Nassau-Suffolk, San Francisco, Middlesex-Somerset-Union, and San Jose. Remaining markets scheduled for operation by the end of 2010.

Denial and Rejection

Arbitron denied all allegations and counter sued in both cases, asking for declaratory judgment and injunctive relief. However, in the New York case, the U.S. District Court, dismissed Arbitron's counterclaim. There is some good news; the decision has not affected the right to release PPM rating estimates during the investigation.

Legal Settlements

Arbitron agreed to settlements with the states of New York and New Jersey. Both agreements included cash, adjustments in panelist selection recruitment, increases in cell phone only household selection, and promises of increased efforts for accurate measurement. In regards to New York, Attorney General Cuomo reserved the right to rescind the order and reinstate the civil action if Arbitron does not get accreditation by October 15th of this year. By July 2010, 15% of New York City panels will chosen by the same address-based door-to-door method used in Houston.

Other assurances include increased sample targets for cell phone-only households, and an increase in reaching sample targets. An interesting catch: A study will be completed by July 15th in New York City to determine non-response measurable bias. If problems are indicated, Arbitron has obligated itself to find answers within six months. Highlights of New Jersey's agreement included doubling the number of cell phone-only households sampled and a certain percentage of panelists will be recruited using the Houston address-based door-to-door method. Philadelphia will also benefit from the agreement because a significant portion of their market encompasses southern New Jersey.

Inside Trader Allegations

The scrutiny continued, as New York State Attorney General Cuomo has now subpoenaed seven high ranking Arbitron executives to examine alleged possibilities of insider stock trading. Apparently, just prior to a PPM delay in November 2007, there was about an $8 million sell-off of company shares from within the company.

The Upside

PPM is potentially a more efficient way to measure media exposure/listening; it doesn't rely on the memory of a survey participant documenting daily listening in a diary. Results from test markets Philadelphia and Houston have shown that audiences for individual stations are twice or sometimes three times larger than previously reported with diaries. There are weekly trend reports, monthly reports and one special holiday report. More frequent data should provide increased insight into listening habits. Most important, there should be less fluctuation from report to report, and therefore additional sales opportunities. Electronic measurement will also provide broadcasters the ability to measure the new digital audio platforms, HD radio, satellite, Internet radio and podcasting.

A Possible Problem

At-home night listening, from 7pm until midnight, presents a possible problem. When the PPM meter is docked for the night, only one more hour of listening is credited, regardless of the docking time. Although Arbitron panel relation specialists probably try to discourage docking until bedtime, the rules present the potential for a lot of non-measured listening. Remember, even docked, the microphone on the meter is always recording. Over the years Arbitron has made several adjustments to the diary measurement system; hopefully the same will hold true for Portable People Meters.

My Opinion

It is human nature to attempt conquering the unknown. When it comes to man, machines, and computers, there is no such thing as foolproof. As the Portable People Meter debuts in more markets, some programmers will discover how to manipulate the measurements.

Arbitron will address flaws in panel selection methodology and length of service by household panelists, as more cities are incorporated into the PPM process. Most likely, the least expensive and first flaw to be fixed will be panel turnover. With the diary method, there is a new group of survey participants every week, allowing more people to participate in measurement. PPM panelists can serve six months to two years, resulting in little turnover. Other than shipping equipment to new PPM panelists, there would be no other additional financial obligations. Since it is currently impossible to estimate how many persons would be eliminated due to non-compliance in a survey period, Arbitron has probably already factored in extra shipping costs.

However, a change to include the Houston, Philadelphia, and New York City panel recruitment methodology would be a large extra expense Arbitron will attempt to avoid for as long as possible.

A positive effect of the PPM is the renewed interest of broadcasters in the sound of radio. Once again, there is an emphasis on concise, entertaining DJs, improved research interpretation, an effort to improve music rotations, attempts at more effective branding methods, the use of the Internet, social networks, text messaging, and anything else that might increase ratings and revenue. Radio is actually thinking about what consumers want to listen to. Hopefully, the glut of weekly minute-by-minute PPM statistics will not cause too many broadcaster knee-jerk reactions. Regardless of what some advocate, no one is a PPM expert yet.

Consider this: For years, in youth-targeted music radio, pundits insisted uptempo songs be played at the top of each hour. This theory continued to hold sway until the industry realized that the top of the hour for listeners is whenever they decide to listen, regardless of time. So much for "Radio Experts."

A Final Thought

People are afraid of the new, but things are forever changing, and once the dust clears, everything always settles down. Radio has survived every challenge it has faced; the Portable People Meter will be no different.