Arbitron Faces Legal Action in NY State Over PPM

Implications: New York State Attorney General Andrew Cuomo announces intent to sue Arbitron over deployment of its PPM technology "to enjoin unlawful and deceptive practices in which Arbitron plans to engage, has engaged and/or continues to engage." 

Analysis: I don't know the New York State AG.  I have no vested interest in Arbitron, or its PPM technology.  But this action for the NY State AG to intervene in the marketplace over the PPM technology smacks of politics, and it comes at a horrible time for the radio industry.

I won't speculate on whatever political motivations created this lawsuit.  I will comment on how this potentially impacts the radio industry.

Fact:  The radio industry needs a better system of measurement in the 21st century.  After years of discussion with radio leaders and advertisers, the committment was made to deploy the PPM to replace the antiquated diary method that no one in radio believes in.

Fact: There have been challenges with the technology that Arbiton is addresing with the radio industry. 

Fact:  There have been sampling issues with minorities that Arbitron is addressing with the industry.

Fact:  The entire area of audience measurement is overseen and evaluated by a non-partisan, independent Media Ratings Council, which has been actively involved in PPM accreditation.

Fact:  At a time when advertisers need and demand more accountability with the advent of so many platforms, the PPM is a needed technology.

Is it perfect?  No, but it's only been tried in a few markets.  The only way to improve it is to get it in the market and work on fixing issues.  You can only do so much in a lab environment.

I recognize the concerns raised by the Spanish Radio Association (I am of Latino descent) and the National Association of Black-Owned Broadcasters about wanting to ensure accurate sampling of minority audiences.  These entities need to work with Arbitron and the rest of the radio industry to resolve these concerns.

But political action?  Last week there were efforts to get the FCC involved, and that agency has no jurisdiction in this matter.

While the politics go on radio and advertisers will continue to suffer.  What a mess.