• by Joe Mandese  @mp_joemandese, January 12, 2004

In a strong indication that the portable people meter (PPM) system is still very much alive, Arbitron has quietly begun asking radio and TV station operators if they would support the rollout of a new test in Houston early this year, MediaDailyNews has learned. Houston -- which would be the second U.S. media market to be metered by the new system, which measures both TV viewing and radio listening -- was selected because it has a heavy concentration of Hispanic and African American consumers, and because it is a top 10 radio market.

Houston, interestingly, also is not one of the markets Nielsen Media Research has designated to deploy a local people meter service in, suggesting that it would not conflict with Nielsen's plans should the two companies ultimately agree to deploy a PPM service in the market. An Arbitron spokesman confirmed that Nielsen has agreed to join in the Houston test, indicating that it would retain its option to control the TV ratings portion of any PPM service deployed in the United States.

"We have contacted radio stations and TV stations for support, and Nielsen retains their option. We are continuing to work with them," said Thom Mocarsky, vice president-communications at Arbitron.

Financial support from broadcasters and cable companies is critical to keeping the PPM alive, as Arbitron has already sunk millions -- including an extensive beta test in Philadelphia -- into the system, and still has no firm indication from Nielsen or its clients that they would support a commercial service based on the promising new technology.

Through the first three quarters of 2003, Arbitron invested $19 million on its overall research and development, according to the company's third-quarter earnings release.

"For the radio industry not to support this would be irresponsible," said Tony Jarvis, senior vice president-director of strategic insights at MediaCom Worldwide. "The PPM will produce higher quality and more accountable data for our clients, and it will give radio a reach story that they can't claim from diaries."