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December 17, 2007

Radio Industry and Arbitron will get it right

This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Alan Albarran, Professor and DirectorAlan Albarran
Professor and Director, UNIVERSITY OF NORTH TEXAS
Implications: True, the people meter introduction was supposed to have moved faster by now, but changing to a new measurement system is complicated.  It is better to pause and get things right than it is to plow ahead and commit more mistakes.

Analysis: I don't disagree with this analysis, but changing to a new measurement system that will have major impacts on the radio industry is not without possible flaws or complications.  Arbitron is doing the right thing by not rushing forward and making more mistakes.

The PPM will replace the diary--a measurement system that has been around for decades.  Radio made the transition to the diary from telephone, and that was not without pains and problems.  Implementing technological change is not easy.

Radio is far from dead.  Ad revenues have been flat since 2000, and the industry needs to refocus on localism.  But even in today's consolidated environment, the industry still attracts over 225 million listeners a week. 

A fully accredited and functional PPM system should enable a new era of marketing for radio, along with the push to see radio available on new distribution platforms like the cell phone.  That's one of several initiatives that is part of the "Radio 2020" campaign introduced this September at the NAB Radio Show.

Other Analyses of the Same Source Article:
Firing of Broadcast Analysts
February 27, 2008, Author: Brad Saul, Chief Executive Officer, Matrix Media
Radio Industry and Arbitron will get it right
December 18, 2007, Author: GLG Expert Contributor
A Wake Up Call for Radio
December 12, 2007, Author: Brad Saul, Chief Executive Officer, Matrix Media
Why Radio Companies Should be Private Not Public
November 28, 2007, Author: Brad Saul, Chief Executive Officer, Matrix Media

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