Spanish Radio Assn. Steps Up PPM Attacks
September 11, 2008 at 2:40 PM (PT)
THE SPANISH RADIO ASSOCIATION came away from the NEW YORK CITY COUNCIL still adamant in its belief that ARBITRON's PORTABLE PEOPLE METER (PPM) is inherently detrimental to Hispanic radio. What's more, they objected to ARBITRON's determination to roll out PPM data in eight new markets allegedly due to cost concerns.
"Spanish radio stations will be further challenged in this new world because our ratings will be 50-60% less, which translates into 50-60% less revenues," SBS-NY VP/Market Mgr. FRANK FLORES stated. "In a market that has more than four million Latinos who hail from 21 different countries (with 21 distinct cultures), who can now listen to at least five Spanish-language radio stations, will now have a choice of two -- or maybe three. Simple business mathematics will rule that only the strong will survive."
The PPM Coalition does not argue against the need for laser-sharp metrics. It simply requests the presentation of potentially devastating effects of Arbitronâ??s flawed methodology
"Despite failing to achieve accreditation from the MRC, ARBITRON intends to continue the commercialization of its PPM service," ICBC BROADCASTINGS HOLDINGS Pres./COO CHARLES WARFIELD stated, "ARBITRON’s unaccredited methodology produces unreliable and inaccurate measurement data. The continued, unabated rollout of PPM data will result in huge financial losses for stations serving the Black and Hispanic audiences and might even force some out of business. For ICBC, this is a civil rights issue. This is about survival. The commercialization of flawed ratings data will directly affect the ability of current owners to service debt, repay debt, employee staff and serve the communities we live in and are committed to serve."
"The implementation of a flawed PPM methodology would be akin to dropping a financial nuclear bomb -- what the MMTCF estimates to be around $500 million in annual lost revenues -- on AMERICA’s minority radio stations," MMTCF's JOSEPH MILLER said."PPM’s flawed methodology threatens to drive advertising dollars away from minority-owned stat ions -- a slap in the face of minority broadcasters. It is absolutely critical that we give ARBITRON’s PPM methodology an appropriate level of scrutiny and skepticism. The stakes are too high. The PPM Coalition does not argue against the need for laser-sharp metrics. It simply requests the presentation of potentially devastating effects of ARBITRON’s flawed methodology.”
"ARBITRON’s proposed new system risks inaccurately counting Hispanic radio listeners," UNIVISION EVP/Corporate Research CERIL SHAGRIN said. "Sample size in PPM is smaller than the diary service which limits the ways the data can be used. PPM may require larger sample sizes in order to provide stability of the data and accurate representation of ethnic populations. ARBITRON sets its goals too low. An overall standard of 75% of persons 6+ providing usable data and 60% of persons 18-34 is not acceptable for currency data. Managing an ongoing panel is not the same as a weekly diary service. The quarterly diary measurement was an average of 12 different weekly samples. In PPM if the sample is not representative, users must live with that sample for months. These estimates become the currency with which radio is bought and sold. Spanish radio will not continue to exist if our currency is counterfeit."
We are talking about potentially silencing our community that is something we cannot let anyone do," FLORES concludes. "Not now, not ever."