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CC, Arbitron Deal May Herald Industry Wide Adoption of PPM

With the news that Clear Channel has signed a deal with Arbitron for the electronic ratings from its PPM device, media buyers are looking forward to getting a better picture of the radio marketplace.

Before signing the deal, Clear Channel had refused to have its broadcasts encoded for PPM measurement - and, with nearly 1200 radio stations before it began its limited sell-off of smaller stations last year, the company’s refusal to participate lowered the value of the ratings system significantly, writes MediaPost.

When Arbitron was going live with the PPM in Philadelphia, media buyers were threatening to boycott buying radio time in Philly completely. One buyer, Mary Barnas, executive vp and director of local broadcast for Carat, said that if she could not buy an effective schedule due to lack of proper ratings data, “we will recommend against buying the market.”
Clear Channel ultimately signed for the PPM in that single market.

Clear Channel’s deal with Arbitron will likely herald more deals from smaller holdouts. Jeff Haley, president of the Radio Advertising Bureau, expects industry wide adoption of the PPM by the end of 2007.