Yesterday’s post covered some key factors in the new PPM world.
So what does all this mean? And where should it go from here? We don’t know the real ramifications of Arbitron’s PPM delay. Hopefully, they will be able to make good on their promise to improve the sample representation. They have to. But that will not affect why some formats look good and others look not-so-good. And the net effect in the ad community, specifically in markets where PPM was coming, is immeasurable. And what impact will all this “noise” about PPM’s legitimacy have on ongoing commerce in Houston and Philadelphia where PPM ratings continue to be generated?
And isn’t that the bigger picture? No one disputes the concerns that are being expressed about PPM sample and panel size. Like any new product, there are going to be bugs, and Arbitron needs to be proactive in identifying and solving problems.
But there are mechanisms in place – specifically, the Advisory Council – where protests can best be lodged, without all the media fanfare and explosiveness we’ve been seeing. Like it or not, we’re all in this together – radio companies, Arbitron, advertisers, and the industry at large. In too many situations we’re working in, “great rating books” have not been translating into “great sales.” Too many Top 5 25-54 stations aren’t making budget because the old rules no longer apply. The radio business has a real problem: being perceived as a legitimate medium in the new digital millennium. How we’re regarded by the ad community is critical at this juncture, and this controversy is not working to radio’s benefit. We need to fix the problem, not the blame. It’s in everyone’s best interest.
So, we’ve heard the explosion. Now let’s wait for Arbitron to make good on its promise to get this right. And then, we can get going, figure this thing out, and start making some money on what is still a great business.
Full disclosure: We have conducted research for Arbitron in both ’06 and ’07.
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