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Arbitron, RAB Authorize PPM Economic Impact Study

Arbitron, RAB Authorize PPM Economic Impact Study

Arbitron Inc. and the Radio Advertising Bureau want to hear how the Portable People Meter may affect the economics of radio. The organizations have issued a request for proposal.
The study would look at how the PPM might affect radio’s share of ad revenue and how radio sells, programs and promotes the medium. The RAB and Arbitron have retained David Pearlman, president, Pearlman Advisors and former senior vice president, Infinity Broadcasting, as the initial point of contact for consultants and companies who wish to submit a proposal.
“This RFP is the result of a collaboration between radio industry leaders, Arbitron and the RAB,” said Jay Guyther, senior vice president, PPM Marketing, Arbitron Inc. “We want to help the industry determine how electronic measurement can deliver the greatest possible benefits in terms of increased revenues, new sales opportunities and improved programming as well as identify any additional exposure that radio may gain should it convert to PPM measurement.”
RAB President Gary Fries said the PPM represents “a dramatic change to a new methodology (that) can have a profound impact on how a medium is valued.”
According to Fries, radio needs to understand the pros and cons of PPM. “This study will examine what it might mean to move from diaries to the Portable People Meter.”
Arbitron has agreed to fund the study and will participate on the RAB PPM Task Force, which will select the winning bid. Proposals must be delivered by Aug. 20. The project will be awarded by Sept. 30, and the study should be completed by the beginning of 2005.