Nielsen rejects ratings venture with Arbitron
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Nielsen Media Research has decided against developing a joint TV and radio ratings service with Arbitron, using the latter's portable people meter (PPM) technology.
The US TV ratings provider rejected a deal with radio researcher Arbitron, in part because it felt a PPM-based system would be “more expensive than the methodologies it would replace” – paper diaries and Nielsen's own local people meters.
Chief executive, Susan Whiting said: “We recognise the appeal of a portable, single source measurement tool. [But] while it may offer considerable benefits for radio research, we believe that a one-size-fits-all measurement system is not the approach for a currency in today's complex television markets.”
PPMs measure media audiences by detecting inaudible codes embedded in TV or radio broadcasts.
Now that Nielsen has pulled out of the joint venture option, Arbitron said it would focus its efforts on developing a PPM ratings service for the US radio industry.
Arbitron CEO, Steve Morris said: “Our goal is to secure a critical mass of stations and agencies to allow us to go forward rapidly with the deployment of the portable people meter system.”
Media planning and buying companies owned by Aegis, Havas, Interpublic, Publicis and WPP have all pledged support for PPM ratings.
Morris said Arbitron would also look to work with the broadcast television and cable industry on developing “additional, non-currency services that utilise the PPM”.
“At the same time,” he said. “Nielsen has also expressed to us their desire to use the Arbitron PPM as one component in their portfolio of solutions for television ratings. Nielsen is particularly interested in using the PPM to add a measure of out-of-home television viewing to their existing television ratings services.”
