• by Erik Sass  @eriksass1, March 5, 2007

In a deal that may herald a major shift in the radio ratings landscape, Clear Channel Radio has signed an agreement to use results from Arbitron Inc.'s Portable People Meter (PPM), a passive electronic measurement device, for radio ratings in the Philadelphia area. Although the deal only covers one of the country's major radio markets, it may signal the end of a long, public dispute between Clear Channel and Arbitron over the PPM system.

Clear Channel Radio President John Hogan advised advertisers on Friday that the company signed a three-year deal for Arbitron's PPM ratings in Philadelphia, where Clear Channel owns six radio stations. In January the city became the site of a skirmish between the companies when Clear Channel refused to encode its stations for PPM measurement, making overall ratings less comprehensive during a pre-commercialization demonstration phase of the product.

The Philadelphia face-off was just one in a series of clashes between Arbitron and Clear Channel. In 2005 the radio giant convened an RFP committee of leading radio station owners to consider alternatives to PPM, which is still deliberating. More recently, Clear Channel began funding field tests of PPM's main competitor, a "smart phone" system from Media Audit.

During the public debate over potential electronic measurement systems for radio, Clear Channel and its allies have expressed concern that Arbitron might not be able to roll out the PPM system in the top 50 U.S. markets in a timely fashion. They also insisted that PPM receive accreditation from the Media Rating Council (MRC), a semi-official industry body created at the behest of Congress to regulate media measurement--a condition Arbitron finally fulfilled at the end of January.

However, industry observers say the drawn-out controversy is simply a cover for fierce behind-the-scenes negotiations between the two companies over the price of PPM ratings. At one time, Arbitron proposed rates 65% greater than its antiquated paper diary system. The terms of Friday's deal with Clear Channel were not disclosed.