• by October 20, 2000

The Arbitron Company, a division of Ceridian Corporation, announced today that the two leading advertising rep firms - Interep Interactive and Katz Interactive Marketing - have agreed to use Arbitron Webcast Ratings and its ongoing Internet studies to promote streaming media to advertisers and their agencies.

Arbitron has been tracking the emergence of streaming media audiences in a series comprehensive studies since July 1998 and was the first to release measures of Webcast audiences in December 1999.

Announcing the partnership, Gerry Boehme, President of Katz Interactive Marketing a subsidiary of the Katz Media Group, said, "Independent, third-party measurement is crucial for generating advertiser and agency usage of this growing medium. Arbitron's leadership position in traditional radio audience ratings is well documented. Their measurement of streaming audiences provides instant credibility at the point of sale and will help sponsors use this new medium with confidence."

But the move has brought the two giants under mild scrutiny from several industry watchers, including Ken Dardis of AudioGraphics.com, who wrote in his daily newsletter, "The giant flaw in this is Arbitron does not document the listening of all online radio stations, which means unless you agree to let Arbitron measure your audience you're dead meat in the race to sell ads."

Dardis went on to send an "open message" to Katz and Interep, which said, "You're representing a new form of entertainment that has the power to transform everything you've done in the ad selling process. Why not look for new techniques and companies that bring a fresh approach, instead of settling on the easiest way out? Bring agencies something that gives a true image of what's available. Now is the time to leave old relationships to create something that improves the industry."

In defense of the reps, it's worth mentioning that just 10 days ago, the two formed a strategic partnership with MeasureCast, Arbitron Webcast's more noteworthy competitor and the first company to provide the streaming media industry with next-day audience size and demographic reports. MeasureCast has contracts with Internet broadcasters representing more than 1,700 on-line stations.

The three companies have agreed to jointly develop programs that will increase awareness of the streaming media industry among advertising agencies, media buyers and advertisers. Much like the Katz/Interep/Arbitron alliance.

Today, during the Arbitron announcement, Keenan said "Arbitron's recent study shows that listening to radio stations online has tripled in two years, growing from six percent to 20 percent of U.S. consumers. This type of information will enable Interep to support and promote the importance of streaming media to our clients. Having credible audience ratings for webcast programming supplied by a company such as Arbitron is good news for webcasters, advertisers and agencies alike."

- Masha G