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Radio Top 50 May Be PPM Markets By 2007

Arbitron has proposed to follow up its April 2006 Houston commercialization of the portable people meter with Philadelphia and three other markets in 2007; by 2011, all of the top 50 markets could be PPM markets, Mediaweek writes. But the change will be anything but predictable. PPMs show a 20 percent diminishment in quarter-hour ratings, the audience measure the industry uses to set rates for commercials, which broadcasters may be slow to embrace. On the other hand, Arbitron’s Houston PPM findings show that most radio stations in Houston have twice as many weekly listeners compared to diary measurement.

Add to that a 65 percent rate increase from Arbitron, and Clear Channel and Infinity Broadcasting are balking. In fact, Clear Channel is accepting proposals for an alternative to Arbitron’s PPM through December.

The PPM issue may eventually mean that agencies will have to rethink how they buy radio. “With less time spent listening, but higher cumes, you may have to buy radio across more dayparts and stations, rather than just a.m. drive,” said Brad Adgate, senior vp and director of corporate research for Horizon Media.