The Hispanic Radio trump card worth $250 Million to broadcasters.

Based on the above article regarding PPM and the key issues brought forth by the Spanish Radio Association (SRA), we took the liberty to calculate the impact on local, regional and national dollars potentially impacted on Hispanic radio stations serving US Hispanic Consumers.

The number is HUGE … +/- $250,000,000 in local, regional and national Hispanic Radio revenues negotiated with Arbitron ratings.

But what is the trump card?

Interestingly enough for Arbitron’s PPM to work and to be able to measure Hispanic and all other radio stations in any given market, the radio stations need to agree to encode their programming for the technology driven system to be able to decode all the needed information to produce the data to deliver ratings information in all PPM markets.

Don’t encode and they cannot decode is the trump card. Simple.

Imagine all Hispanic and minority focused radio broadcaster not encoding their signal and then the PPM results do not reflect the appropriate listening patterns in any given market.

That would basically render the PPM data WORTHLESS, since it needs the MAJOR radio station to willingly agree to encode their programming signal in any given market.

Trump Card or what? ¡Claro que Si!

A good portion of the $250 Million at stake is placed by Hispanic focused agencies.

Now on the other end of this potential Mexican Standoff is the response from Hispanic agencies and their continued support of Hispanic Radio stations with advertising without a ratings system to help them quantify the share and spot levels required to deliver the results for their clients.

Veremos.