Arbitron plans to increase the Persons 12+ sample
Company Raises 18-54 Guarantee
Persons 12+ sample target to
increase by 10 percent;
Persons 18-54 guarantee upped to 90
percent, after first year of currency;
Persons 6+ and 18-34
sample benchmarks also raised
NEW YORK; July 21, 2008 – Arbitron Inc. (NYSE:
ARB) today announced a new Portable People MeterTM sample program
which was presented at the July Arbitron Radio Advisory Council meeting. The program is designed to deliver a larger 12+
sample target. The company also
announced an increase in its 18-54 sample size guarantee from 80 to 90 percent and
raised other key sample benchmarks in PPM markets. Arbitron will announce additional details of the PPM sample plan
and the effective dates of the individual components in the coming weeks.
“The PPM sample program we unveiled at the
Advisory Council Meeting is a significant step forward,” said Steve Morris,
chairman, president and chief executive officer, Arbitron Inc. “The Advisory Council deserves credit from
the industry for providing Arbitron with insights and input over the last few
months which enabled us to raise the bar regarding these key PPM sample
metrics,” continued Mr. Morris.
Key components of the PPM sample plan debuted at
the July 2008 Arbitron Radio Advisory Council include:
Increasing the Persons 12+ sample target by ten percent
Increasing the threshold for the Persons 18-54 sample
size guarantee from 80 percent to 90 percent
Raising the PPM sample benchmarks for total Persons 6+
from 90 to 100 percent.
Increasing the sample benchmarks for 18-34 from 70-75
percent at month six, prior to the 80 percent benchmark for year two and
Persons 12+ sample target to increase by ten percent at no
cost to customers
Arbitron plans to increase the Persons 12+ sample
target in current and future PPM markets by ten percent.
Arbitron is considering several approaches for achieving
the Persons 12+ sample target including, among other means, an increase to the
cell phone only household sampling rate, redistributing children 6-11 sample
and/or the introduction of sample stratification. The specific combinations of approaches are pending the outcome
of methodological tests and further industry consultation.
Arbitron plans to implement the increase in Person
12+ sample target in phases, beginning in 2009, with completion currently
expected by the end of 2010.
Persons 18-54 sample guarantee threshold to increase from 80
to 90 percent
Arbitron also announced two
changes to its previously disclosed Persons 18-54 PPM sample size
guarantee. First, the current guarantee
threshold of 80 percent will now take effect in each PPM local market with the
first month of PPM currency in that market instead of the fourth. Second, starting on the first anniversary of
PPM currency in the local market, the threshold for the Persons 18-54 sample size
guarantee will be raised to 90 percent of the sample target as determined based
on a 13-report monthly rolling average.
Persons 6+ benchmark
to increase from 90 to 100 percent
The company plans two changes to its persons 6+
benchmark. The current benchmark of 90
percent of the sample target for persons 6+ will take effect in the first month
of currency instead of the fourth.
Starting on the first anniversary of PPM currency
in a market, the Persons 6+-sample benchmark will be raised from 90 to 100
percent of the sample target based on a 13-report monthly rolling average.
18-34 demographic benchmark to increase from 70 percent to
75 percent at month six
Arbitron’s new sample plan involves three elements
for its 18-34 benchmarks. First, the
current benchmark – 70 percent of target – will take effect with the first
currency report instead of the current approach, which begins on the fourth
month. Second, the benchmark will be
raised to 75 percent of target with the sixth currency report. Lastly, the 18-34 benchmark will increase to
80 percent of target effective with first anniversary of PPM currency in a market
based on a 13-report monthly rolling average.
The 18-34 benchmarks apply (depending on market
population) to the following gender, race and ethnicity breaks: Persons, Men,
Women, Black, Hispanic and Other.
review the specific methods by which we plan to achieve these enhancements with
the Media Rating Council and the NAB Committee on Local Radio Audience
Measurement (COLRAM),” said Mr. Morris.
intends to provide a more detailed summary of the plan along with milestones
and timelines in the weeks to come.
Arbitron Inc. (NYSE: ARB) is a media and marketing research firm
serving the media – radio, television, cable, online radio and out-of-home – as
well as advertisers and advertising agencies in the United States. Arbitron’s
core businesses are measuring network and local market radio audiences across
the United States; surveying the retail, media and product patterns of local
market consumers; and providing application software used for analyzing media
audience and marketing information data. The company has developed the Portable
People Meter, a new technology for media and marketing
Through its Scarborough Research joint venture with The Nielsen
Company, Arbitron provides additional media and marketing research services to
the broadcast television, newspaper and online industries.
Arbitron’s marketing and business units are supported by a
world-renowned research and technology organization located in Columbia,
Maryland. Arbitron’s executive offices are located in New York City.