Arbitron to Respond to list of concerns raised by AHAA PPM Advisory Council.

In April, José López-Varela announced the creation of the AHAA PPM Advisory Council, designed to explore industry issues and opportunities surrounding Arbitron’s Portable People Meter (PPM), the new electronic radio broadcast measurement system. The AHAA Advisory Council comprises representatives from various AHAA member agencies, Hispanic Radio Broadcasters and Arbitron.

“The Council members remain extremely concerned about the impact of the PPM methodology on the Hispanic market,” says Isabella Sanchez, AHAA PPM Advisory Council chairwoman, and vice president and managing director of Tapestry. “The methodology is not accurately measuring Hispanic radio audiences and this will have a tremendous influence on the future of our industry. Throughout the years, Spanish-language radio has proven to be one of the most effective ways to market to Hispanics, but without accurate measurement, the relative cost and rationale for including radio in our media plans will be increasingly difficult to justify to clients.”

The AHAA PPM Advisory Council submitted a list of questions and concerns to Arbitron in June regarding the roll-out of PPM. Arbitron responded in writing, and Council members and Arbitron representatives are scheduled to meet Monday, August 18th in New York to further discuss their responses. Despite industry trepidation, Arbitron announced on June 12th their plans to move ahead with the roll-out this fall.

The issues raised were numerous but the Council has categorized them into four primary areas of concern:

1. Accreditation: Arbitron has failed to receive accreditation from the Media Ratings Council (MRC); an industry standard.
2. Recruitment: verification of Hispanics in the household, country of origin and other demographic targets when recruiting Latinos for the PPM panel.
3. Low Designated Delivery Index (DDI): the DDI goal Arbitron has set is lower than what Council members consider to be acceptable.
4. Consideration of cell-phone only homes: Hispanic homes are almost 20 percent cell phone only while the current sample is under 8 percent.

The AHAA PPM Council has been working with the Spanish Radio Association (SRA); a group of Hispanic broadcasters that have formed a coalition concerned about the rollout of the PPM. The two groups have voiced their collective concerns and are in parallel on their positions regarding the planned roll-out.

“The preliminary launch of PPM resulted in enormous declines in Hispanic radio audience size, station rankings, and time Hispanics spent listening to their favorite stations,” says José López-Varela, chairman of AHAA. “This is a critical issue for our industry and we plan to keep our membership updated on the Council’s progress. There are multiple flaws in the methodology, measurement, design and implementation of the PPM. While we agree electronic measurement is the right thing to do, and as an industry, we cannot afford to adopt a system that is not truly reflective of our market.”

AHAA will issue a statement following Monday’s meeting with Arbitron representatives.