Arbitron considers picking up the phone

US-- As radio ratings provider Arbitron struggles to improve compliance in its portable people meter (PPM) panels, the firm's CEO has said cellphones could be a possible future alternative.

Arbitron has spent millions introducing the PPM system, which is based on a dedicated device that panellists carry to record their listening habits. But the firm has had trouble getting panellists to carry the device, and some sample sizes in Houston and Philadelphia – the first two cities to make the switch – have been falling below targets.

Meanwhile, a partnership of the Media Audit and Ipsos is conducting an industry-funded test of a system using participants' own cellphones – an approach that supporters claim makes more sense, and will be cheaper.

In a conference call with investors on Thursday, Morris defended the PPM methodology, but accepted that cellphones could improve compliance in the 18-34 group.

“There may be other devices that that age group would be more willing to carry, like a cellphone,” said Morris. “There are problems with cellphones as a research tool, so we are, and have been for quite a while, working with cellphones as a potential device, and I think there could be a solution there, but it's not essential right now because the overall metrics are good and the quality looks good. But long term, we're open to anything that could fundamentally improve and increase the performance in any one of those cells, so… it may be part of the future.”

Morris had previously called on supporters of the Media Audit/Ipsos test not to “sit out and take a pass on the hope that something useful might come out of this,” urging them to also sign up for PPM.

Cox Radio, owner of 80 stations, was one of the firms to do so, but CEO Bob Neil has been vocal in his criticism of the PPM system, complaining of “massive problems” in the samples.

Neil told Research : “Many in radio feel that a system in which people are asked to carry around an extra device may have bigger problems in the future, because people already have enough to carry. Cox advocated a system of using cellphones because virtually everyone keeps one of those with them at all times.”

Neil said that despite improvements in Houston, major problems remain in Philadelphia – which is to be the model for other cities as they move to PPM measurement. “Our fear is that Arbitron hasn't proven it can properly sample two markets, yet continues to roll out PPM in new markets,” said Neil.

Author: Robert Bain

Related links:

Investors grill Arbitron over PPM samples and Apollo delay

On-target PPM samples – or your money back

Cox signs for PPM but keeps Media Audit option open

Arbitron warns radio firms against delay as Media Audit wins test funding