• by Erik Sass  @eriksass1, April 15, 2008

Cumulus Media issued an RFP Monday for a new measurement system for radio in mid-sized and smaller markets, citing the need to generate more convincing, timely data to compete with the Internet. The RFP is also an expression of frustration with Arbitron, the dominant radio measurement firm, which has developed an electronic measurement system based on its Portable People Meter (PPM) but has no plans to replace its paper diary ratings system in smaller markets.

The Cumulus RFP specifies a measurement system that can capture the size and demographic detail of radio audiences outside the top 100 markets. According to Cumulus COO Lew Dickey, the measurement would be provided by a third-party company with no financial dependence on Cumulus, functioning as an "independent, objective entity."

Cumulus formulated the RFP after reaching agreement about the objectives of the new system in discussion with other broadcasters and advertisers. It hopes that other broadcasters will sign up for the new measurement as well. Although few details were provided, the RFP called for a "robust, scalable and extensible Web-based solution." The new service would eventually be accredited by the Media Rating Council.

Dickey said the RFP was prompted in part because "in all likelihood, [Arbitron's] PPM will not be available to these smaller markets." He added that Arbitron is welcome to submit proposals in response to the new RFP.

In its RFP, Cumulus also criticized Arbitron's current paper diary system for failing to fully represent the "18-34 cohort, younger males, Hispanics and cell-phone only households." Cumulus will drop its subscriptions to Arbitron's paper-diary measurement system in 54 smaller markets on January 1st, 2009.

Commenting on the Cumulus RFP, Arbitron said it has worked to improve the existing paper-diary ratings in smaller markets, in part by increasing the average sample sizes in 42 smaller and mid-sized markets by 30% and introducing improved qualitative questions in the back of the diary.