Arbitron Receives Media Rating Council Accreditation for the Portable People Meter Radio Ratings Data in Houston
Arbitron Inc. (NYSE:ARB) announced today that the Media Rating
Council(R) (MRC) has accredited the Portable People MeterTM radio
ratings data in Houston.
"This is a significant milestone for Arbitron and for the radio
industry," said Steve Morris, president and chief executive officer,
Arbitron Inc. "This is the first completely new, electronic
methodology for broadcast ratings since the set-top, push-button
people meter was introduced in the late 1980s. It's the only personal,
portable electronic meter system in the world that's ever been
subjected to an MRC audit and has met the accreditation standards of
the Media Rating Council for a radio ratings service."
"Obtaining accreditation of the Houston PPMTM radio ratings data
is a major accomplishment-two years in the making-for the industry and
for Arbitron. Users of the new PPM radio ratings currency in Houston -
monthly data based on average quarter hour radio ratings-can have
confidence that the radio methodology, sampling systems and survey
processes that are the foundation of the PPM service have been
independently and thoroughly audited and have met the standards of the
MRC," said Owen Charlebois, president, Operations, Technology and
Research & Development, Arbitron Inc. "We are grateful for the hard
work of the MRC staff, their auditors and the members of the MRC
committees who worked tirelessly to help us complete the rigorous
accreditation process."
"The MRC appreciates the extensive commitment Arbitron made to the
accreditation process for the Houston PPM service." said George Ivie,
executive director, Media Rating Council. "We broke a lot of new
ground over the last two years, and Arbitron worked with us
constructively during the audit and thereafter to ensure necessary
audit committee learning took place. We know that supporting this
large audit internally and externally has been a challenge for
Arbitron."
Status of Arbitron Portable People Meter Television Ratings in
Houston
Arbitron is pursuing MRC accreditation for the broadcast
television and cable television data in Houston that utilize the same
PPM technology and respondents as the radio ratings data.
Because Arbitron does not have, at this time, a license to use its
current source of MRC-approved language universe estimates in Houston
to sample-balance television audience estimates, the television data
have not yet been granted accreditation by the MRC.
Because of the importance of the weighting procedure, the MRC has
requested that Arbitron not represent any television ratings data from
the Houston PPM service as accredited until it is able to
language-weight the television ratings data by the language usage of
Hispanic respondents using MRC-approved methods and universe
estimates.
Arbitron can and does sample-balance radio audience estimates by
the language usage of Hispanic respondents in Houston.
The MRC Accreditation Process
Media Rating Council accreditation means that the Houston PPM
radio ratings service delivers radio audience estimates that meet the
MRC's Minimum Standards for Media Rating Research, which include
requirements for ethics and operations, for disclosure and for
electronic delivery tools. Accreditation helps ensure that audience
measurement products are "valid, reliable and effective." In addition,
the MRC membership actively pursues research issues they consider
priorities in an effort to improve the quality of research in the
marketplace.
MRC accreditation begins with an audit, which is a detailed and
rigorous review of every aspect of a ratings service that has applied
for MRC accreditation. The cost of the audit is paid for by the
company seeking accreditation.
Over a two-year period, the audit team inspected all aspects of
the PPM methodology as deployed in the Houston demonstration. The
audit included, for example:
-- Laboratory and real-world field tests of the PPM technology:
encoders, meters, automatic data collection and editing
systems, in-home/out-of-home tracking system and other
technical aspects of the system;
-- An end-to-end evaluation and verification of the PPM software,
including the development process, documentation and
functionality;
-- A thorough examination of the address-based sample design and
sampling execution that are unique to the PPM Houston service;
-- An examination of panel recruitment and installation methods
and results;
-- A review of panel management and compliance monitoring methods
and results;
-- A detailed assessment of sample performance, proportionality
and in-tab rates;
-- An assessment of data processing, universe estimate and
weighting procedures; and
-- An assessment of the rating service disclosures of methodology
and survey performance.
The multi-phase audit was completed in early 2006 and delivered to
the MRC staff and audit committee members for their review. Since
January, the MRC's PPM audit committee members (who include television
and radio broadcasters, cablecasters, advertisers, advertising
agencies and industry trade associations) reviewed and discussed the
audit findings; asked questions and gathered responses from Arbitron
on a number of issues. In the course of this process, Arbitron
submitted to the PPM audit subcommittee a comprehensive plan to
improve respondent compliance, which will be implemented throughout
2007. A number of the projects outlined in the plan are under way, and
Arbitron will continue to work with the MRC in assessing the results
of these efforts and determining next steps as necessary.
Additionally, Arbitron will be releasing a new PPM ratings delivery
tool in 2007, which is currently being audited by the MRC.
About the Portable People Meter
The Arbitron Portable People Meter system uses a passive audience
measurement device - about the size of a small mobile phone - to track
consumer exposure to media and entertainment, including broadcast,
cable and satellite television; terrestrial, satellite and online
radio, as well as cinema advertising and many types of place-based
electronic media. Carried throughout the day by randomly selected
survey participants, the PPM device can track when and where they
watch television, listen to radio, as well as how they interact with
other forms of media and entertainment.
The PPM detects inaudible codes embedded in the audio portion of
media and entertainment content delivered by broadcasters, content
providers and distributors. At the end of the day, the meter is placed
in a docking station that extracts the codes and sends them to a
central computer. The PPM is equipped with a motion sensor, a patented
quality control feature unique to the system, which allows Arbitron to
confirm the compliance of the PPM survey participants every day.
About Arbitron
Arbitron Inc. (NYSE: ARB) is an international media and marketing
research firm serving radio broadcasters, cable companies,
advertisers, advertising agencies and outdoor advertising companies in
the United States, Mexico and Europe.
Portable People MeterTM and PPMTM are marks of Arbitron Inc.
RADAR(R) is a registered mark of Arbitron Inc.
Maximi$er(R) is a registered mark of Arbitron Inc.
Media ProfessionalSM is a service mark of Arbitron Inc.
Media Rating Council(R) and the "double checkmark" logo design are
registered marks of the Media Rating Council.