rhumbo said:
David, Have you ever been to Maryland and actually looked at a completed radio diary?
I first viewed diaries in 1970 in Beltsville and have probably done well over a hundred trecks to that town, Laurel and Columbia since then. I am responsible for two books being reissued based on diary reviews. I have lead teams of as man as 12 programmers from our stations on these multi-day visits.
During my radio days, I visited Maryland over 20 times to study diaries for the various stations and markets in which I managed. I left Maryland every time thinking the same thing. There has to be a better way to measure radio.
I've worked in markets with Hooper, Pulse, Birch, Burke, Audits & Surveys, Mediastat, Mediatrend, IBOPE, Datos S.A, INRA-Starch-Hooper, BRI, Clapp & Mayne, Strategy Research, Asesores, Inc., and others. As far as controls, follow up, accuracy, verification, validation, being audieted by a user association, Arbitron is far ahead of all of these.
ARB is a great direct mail and telemarketing operation. That is what they do. Back in the 70's, when they competed with Pulse, they proved to be great businessmen as well. They spent all their time selling to the agency community, how great their service was. Pulse spent its time servicing its radio customers. We know who won the war, ARB.
I was in the last market released by Pulse, and was actually in their offices when the last book was released and the office closed. Arbitron was better then and is now. I had to use Pulse because Arbitron was not at the time interested in doing my market.
But you are one of the few I know who realized that Arbitron sold to the agencies. When the seller came back from an agency call saying the client was buying off Arbitron, stations finally dropped first Hooper and then Pulse... but Pulse held in there for 13 years after Arbitron started.
They now operate a monopoly in the radio measurement business. They do not want to change from a diary based system. It's much cheaper for them.
They are dying to go to PPM, as they can increase rates by nearly 70% with PPM. It took the MRC to stop the ill-timed rollout, in fact.
What's sad for the radio industry is this technology was developed in the early 90's. I attended an Arbitron presentation in Maryland to learn about this in 1992. It took over 15 years to get it in the marketplace!
I saw it working on the third floor of Arbitron around 1995. The meter was the size of a paperback novel, and the battery life was just about a half a day. The encoding was still noticable, and there were not components and batteries on the market to make it practical in the field.
Pricing was always the issue. Every GM I know wanted the pager method but the cost was out of sight. At the time, my station paid over $250,000 a year to ARB. They wanted slightly over $800,000 a year for the new system from our station in Houston. I have no idea what they charge now for their service, but I bet it's less than that on a per station basis.
The increase was about 60% to 70% over the cost of the last diary survey in the market.
What is really sad, is that The Media Audit has a cell phone based system that everyone would use. Think about it, a free cell phone for you and a great rating system for the stations. Everyone carries cells these days, so there would be no problem getting people to use them.
The idea was very good. However, when an attempt to test it was done in Houston, the destruction of the analog signal was so horrible few stations kept it on even 6 hours. And idea is not practical unless it works.
My prediction is the folks in Maryland are doing a Texas Two Step because of the problems of the pager system and they can continue to use a system developed in the late 40's and print massive amounts of money for the next 15 years while they study the problem. And radio falls farther behind in the advertisers eyes.
Arbitron is working on cell phones, but the biggest issue is having a standard for detection given that there is a wide range of microphones on cellulars; even if models are modified, there have to be multiple models since different demos and lifestyles will not want the same phone and the pickup has to be the same on each, no matter what.