FCC launches inquiry into Arbitron's PPM

US-- The Federal Communications Commission (FCC) has launched an inquiry into the impact of Arbitron's portable people meter (PPM) radio ratings system on minority stations.

In what the Commission describes as an “open and neutral” inquiry, it is inviting submissions from all parties not only on the reliability of Arbitron's system, but also on its own authority to conduct a full investigation and to take action on the matter – which Arbitron has challenged.

The inquiry comes in answer to calls from broadcasters targeting ethnic minorities, who claim that the system, which is being rolled out to replace the old diary-based method in the country's major radio markets, is undercounting their audiences because black and Hispanic listeners are not properly represented in the sample.

Groups including the National Association of Black Owned Broadcasters (NABOB) and the specially formed PPM Coalition, argue that the system is flawed in a way that creates a bias against minority stations, with some fearing for their survival and abandoning formats targeted at minority audiences. NABOB director Jim Winston went as far as calling the situation a “civil rights crisis”.

Arbitron responded to the FCC's Notice of Inquiry with a statement saying that it “welcomes the opportunity to better educate all parties about our portable people meter service and its advantages over the diary-based system”. It said that the open nature of the inquiry could “foster dialogue, education and an exchange of ideas among parties holding differing viewpoints” more effectively than a closed, adversarial proceeding.

Arbitron has insisted that its system is reliable, arguing that difference between listening figures from the diary and PPM systems are due to the fact that PPM measures actual listening, while a diary-based system can only measure recall and loyalty.

However the firm has acknowledged difficulties in recruiting ethnic minority panelists and ensuring they regularly carry their PPM device, and, under pressure from clients it has implemented a range of quality assurance improvements.

Commissioner Jonathan Adelstein, who has been pushing for an investigation since last year, speculated that the Commission could even ban the use of PPM by broadcasters if it is found to be unreliable.

The Commission noted that Arbitron is “the only company that currently provides quantitative audience data for radio stations” and that the FCC itself relies on the firm's data.

PPM is currently in use in 14 radio markets, which together represent more than half of the ad revenue of the country's top 50 markets. A further 19 markets are due to make the switch to PPM this year.

Author: Robert Bain

Related links:

FCC to investigate Arbitron PPM? Commissioner thinks so

Senators call on FCC to investigate Arbitron

Hispanic firms want probe of 'flawed' PPM