More Static: Citadel Radio Slams PPM

radioThe chorus of radio broadcasters criticizing ratings from Arbitron's Portable People Meter now includes Citadel Broadcasting. Michael Luckoff, president and general manager of two Citadel stations in San Francisco, wrote an open letter to Arbitron CEO Michael Skarzynski characterizing Arbitron's PPM service as "next to worthless if not actually destructive to many radio broadcasters."

Although not formally representing the entire company, the public broadside from one of Citadel's regional bosses presumably had the blessing of the other top executives. The addition is important because Citadel is the first "mainstream" broadcaster to jump into the most recent round of protest. (Until now, complaints have mostly come from broadcasters that target minority audiences with urban formats.)

Luckoff's complaints are especially damning because on the surface, Citadel has nothing to complain about in San Francisco: KGO-AM, which focuses on news and talk, is the top-rated station in that market by PPM measures.

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Nonetheless, Luckoff tore into Arbitron for failing to maintain sample sizes equivalent to those used in its old paper diary system: "In the San Francisco metro, for instance, approximately 7,200 diaries were distributed in every quarter. Now, there are but 2,000 meters, 800 households surveyed for what Arbitron hopes to be a two-year period."

The letter argues that the big reduction in sample sizes makes it impossible to conduct statistically valid comparisons of audience size, listening trends, etc. -- all information that advertisers and media buyers rely on when gauging their radio investments. Luckoff added that this deficiency is especially egregious in light of the higher rates charged by Arbitron for its PPM ratings.

While Citadel may be the first mainstream broadcaster to join the most recent round of attacks on Arbitron, in previous years some of the nation's biggest radio groups bitterly opposed plans to introduce PPM as currency for radio transactions.

Complaining about PPM's cost, sampling flaws and other shortcomings, an industry consortium led by Clear Channel Radio considered alternative measurement systems before signing up for PPM ratings under pressure from media buyers and Arbitron itself.

However, the complaints continued, with open letters signed by Clear Channel Radio, Cumulus Media, Cox Radio and Radio One Inc., complaining about Arbitron's missed sample size targets.

2 comments about "More Static: Citadel Radio Slams PPM".
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  1. John Grono from GAP Research, August 14, 2009 at 9 a.m.

    OK, what have I missed here?

    The diary sample in San Francisco was quoted at "7,200 per quarter". The PPM sample is "2,000 meters" (actually, the average daily in-tab rate was n=2,286 for July 2009 - Arbitron website data).

    Now the diaries are weekly are they not (well they are here in Australia)? And there are 13 weeks in a quarter are there not? Doesn't this mean that on average n=554 diaries were returned each week to get to the n=7,200 per quarter?

    In contrast, the PPM's are placed in a continuous panel (great for measuring R&F by the way, rather than modelling it for any duration greater than a week) that return data 24/7 for every day. So if the daily in-tab averaged n=2,286 for July, doesn't it mean that the average week also has 2,286 reporting PPMs?

    Isn't n=2,286 about FOUR TIMES LARGER than n=554?

    Put another way, across a quarter, the n=2,286 PPM panel accumulates to the same number of daily data points as an n=29,718 diary sample. While costs have increased, and have been reported to be by as much as +60%, that is somewhat less than the increase in what is known as 'effective sample size' (Intro to Stats:101 stuff).

    I simply don't understand how this is a worse sample size as the report indicates was the primary concern in the letter to Arbitron. Could someone please explain? Have I completely misread the data and the situation? If not, does this not then display a profoundly worrying lack of understanding of audience measurement research by a major broadcaster?

    John Grono

    GAP Research

    Sydney Australia

  2. Rob Frydlewicz from DentsuAegis, August 14, 2009 at 10:40 a.m.

    Mr. Grono's comments are a breath of fresh air - truth to power!

    Interesting that a struggling medium continues to embrace an archaic means of measurement. Yes, let's keep chopping down trees in order to produce tens of of thousands of personal diaries each week.

    http://www.thestarryeye.typepad.com/history

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