• by Joe Mandese , November 16, 2006

Arbitron got another crucial vote of confidence for its new portable people meters, striking a deal with Interep to use the new radio audience measurement system. Interep, is one of the largest radio advertising sales representatives, handling an estimated 45% of all national spot radio advertising sales. Interep, which handles radio sales for such broadcasters as ABC/Disney, Beasley, Buckley Radio, CBS Radio, Cumulus Media Partners, Curtis Media, and Emmis, competes with Katz Radio, which is owned by Clear Channel Communications, and controls an estimated 50% of all national spot radio buys.

Clear Channel, which has been the big hold-out on Arbitron's PPM service, this morning accepted a bid of nearly $19 billion to be acquired by private equity firms Thomas J. Lee Partners and Bain Capital. Following such deals, private equity firms typically seek to reduce operating costs to improve margins. Clear Channel's main objection to Arbitron's PPM service is believed to be its cost. The PPM service is estimated to cost 65% more than Arbitron's older paper-based diary ratings.

While the Interep deal represents an important step for Arbitron, the radio researcher has also been waiting for an important blessing from the industry's media ratings watchdog, the Media Rating Council, which has yet to accredit the PPM service.

"The more important news item today might be the Media Research Council is meeting today and [Arbitron] believes it might finally vote either yea or nay on PPM," Jim Boyle, an analyst with C.L. King & Associates, wrote in a research note Wednesday. "If the MRC votes yes to the PPM, we strongly feel most of the remaining radio group holdouts are likely to come back to the bargaining table and cut a similar deal to ones already done by a dozen major groups."