RADIOGM said:
Arbitron has just admitted to the whole industry what the industry has already known. Both the diary methodology and PPM methodology are flawed.
I do not see where Arbitron admits "flaws" in the diary system; that methodology is MRC accredited and audited and woks as well as possible within the limits of the "technolgy" and the sample size. The only flaws in the diary methodology are the necessay compromises in registering manually a whole week of listening. There has been no better way, anywhere in the world.
Why are we even dealing with Arbitron anymore? Because there is no other company taking a serious run at Arbitron's business.
Arbitron has the confidence of the buying community (till now, perhaps) and stations pay the cost because they want to be on buys. No other service has achieved credibility at the agency level since Arbitron drove The Pulse and Hooper out of the arena in the 70's, and including Burke, Audits & Surveys, Birch, SRC, etc.
Plus Arbitron has MRC accreditation in all diary markets except one... and the MRC is essentially a watchdog for the agencies.
You can't fool Wall Street. Arbitron is taking a beating on the stock price and should be.
Wall Street reacts similarly on any significant downsizing of guidance, whether it is a change in car sales or lack of approval for a new drug.
They are two faced liars about earlier fixing problems and have been caught hands down with a product not ready to go.
Most think that Arbitron, who has never done a radio study using a panel, underestimated the difficulty of building and maintaining a panel.
The issues with the PPM have to do with getting the service running with a proportional panel on every stratification variable and keeping panelists over time and insuring that they participate (carry) daily. The NY test data showed this was not yet perfected... thus the lack of accreditation. Their lack of experience in panels bit them... and the MRC obviously was in no position to give accreditation.
[/quote]This is going to be fun for the ad agencies! Gee - which numbers do we use and can we believe?[/quote]
There is only one service in Philly and Houston... there is, thus, only one set of numbers to use. All ratings are estimates. Advetisers will use whatever is available to help justify ad placement.
Buyers of advertising, such as agencies and large accounts, have been asking for electronic measurement because it should be, when done correctly, more accurate and much more timely and easy to use.