• by Erik Sass  @eriksass1, November 1, 2006

Arbitron Tuesday sent a mixed signal on the future of radio audience measurement, unveiling plans for a new electronic diary, which would be faster and more accurate than the paper-based diaries that historically have been the basis of its radio ratings reports. That, coupled with news of a potential setback for its portable people meter (PPM) system, raises questions about the PPM's role as the new ratings currency for radio advertising buys.

The industry's ratings watchdog, the Media Rating Council, continues to deny Arbitron crucial accreditation for the new PPM service, which Arbitron has vowed to introduce as the new currency of the radio industry.

A spokesman for Arbitron confirmed a previously undisclosed meeting with the MRC in August, but dismissed it as "old news," stating: "The PPM accreditation process is moving forward." Arbitron was previously rebuffed during a June meeting with the MRC.

George Ivie, the MRC's executive director and CEO, declined to comment, citing confidentiality agreements signed by both parties. Radio industry insiders confirm that the MRC refused to grant PPM accreditation at the second meeting in August.

The MRC's first rebuff was delivered publicly on June 9. It provided ammunition to PPM skeptics and strengthened the hand of Arbitron's competitors in an industry audit of new measurement technologies, led by radio giant Clear Channel.

MRC accreditation has been agreed upon as a minimum condition for any new ratings currency adopted by the audit committee. Although the industry is clearly interested in the council's decisions, most of the details of its deliberations are shrouded in mystery, due to confidentiality agreements.

The revelation of a second MRC accreditation refusal may shed light on the roll-out of the new electronic diary system. Arbitron has already rolled out electronic reporting systems to give customers easier access to ratings data. The electronic data collection system serves to digitize the rest of the process, via an Internet interface available to Arbitron panelists. Arbitron noted that users of its "eDiary" tend to be younger and more likely to work, while accuracy is on par with paper diaries.

The introduction of a digital diary service may also be a move by the company to hedge its bets in the face of continued delays in PPM accreditation. Last week, the Arbitron Radio Advisory Committee issued a memorandum urging Arbitron and the MRC to resolve whatever outstanding issues are preventing PPM accreditation, indicating impatience among advertisers and broadcasters for new, more accurate measurements. The electronic diary system may be a stopgap measure, incorporating some elements of digitization into radio ratings, while Arbitron continues its attempt to get MRC accreditation.