Beasley Points The Finger At PPM
May 6, 2008 at 5:22 AM (PT)
BEASLEY BROADCAST GROUP reported Q1 financials YESTERDAY (NET NEWS 5/5), but the jucier news happened after the numbers were told, as Pres./COO BRUCE BEASLEY, while explaining that the PHILADELPHIA cluster "significantly outperformed" the market, and said that Rhythmic WRDW (WIRED 96.5) and Country WXTU are "incredibly solid radio stations."
He then pointed his finger at ARBITRON, when he added, "Unfortunately, because of the ongoing sampling issues related to the PPM technology deployment and ARBITRON's inability to get this right, BEASLEY and other broadcasters in the market are suffering from unnecessary ratings and share volatility that we believe continue to impact our operating results."
Unfortunately, because of the ongoing sampling issues related to the PPM technology deployment and Arbitron's inability to get this right, Beasley and other broadcasters in the market are suffering.
Like consultant RANDY KABRICH, who has made this point several times, including as recently as YESTERDAY (NET NEWS 5/5) in ALL ACCESS, BEASLEY blamed ARBITRON's undersampling of the 25-34 demo and said, "While we would like to be able to report that this action had the effect of stabilizing the key 25-34 demo, it, in fact, resulted in an undersampling of the 18-24 demo, as well as a substantial decrease in the 35-44 sample. This is extremely disruptive to ad buyers, particularly those who use a one-book approach rather than a three-book average to make buying decision." ARBITRON is like a "boy who cried wolf, telling PPM subscribers like BEASLEY, 'Well, we'll get it right in the next few months.'" He added the company has created a task force to deal with ARBITRON and said, "We are focused on this situation and are determined to receive reliable audience-measurement data."
ARBITRON's commercialization of PPM was the subject of a question to BEASLEY, who responded, "I would not want broadcasters to go through what we're going through in PHILADELPHIA, with ARBITRON tweaking cells and subcells in the middle of us paying all kinds of money. I would hope that they wouldn't roll out ARBITRON's new markets until the cells and subcells are at proper samples."
Listen to the BEASLEY webcast here.