Nielsen Jumps Into The Radio Ratings Business
November 18, 2008 at 9:08 AM (PT)
CUMULUS MEDIA has concluded its process that commenced with a "request for proposal," and which evolved into an open search for a new company to provide radio research, and will start relying on NIELSEN's measurements of 50 of its small and midsize markets in the third quarter of 2009. CLEAR CHANNEL RADIO will also use the NIELSEN data for 17 markets.
NIELSEN, best known for television ratings, already measures radio audiences in other countries. In the UNITED STATES, NIELSEN will be in direct competition with ARBITRON, the country’s leading supplier of radio ratings data. NIELSEN will produce ratings by collecting diaries from respondents. ARBITRON's effort to replace diaries with the PPM service has led some station owners to complain.
We couldn't be more pleased with the outcome. Nielsen is the Gold Standard for television advertisers who make nearly $80 billion worth of decisions in the U.S. based on Nielsen data. This is a great development for Radio
"We initiated the RFP to improve the quality and value of radio ratings," said CUMULUS CEO LEW DICKEY. "That opened up a transparent process which gave us the option to talk to the best research practitioners in the world. We couldn't be more pleased with the outcome. NIELSEN is the Gold Standard for television advertisers who make nearly $80 billion worth of decisions in the U.S. based on NIELSEN data. This is a great development for Radio."
"CLEAR CHANNEL RADIO is delighted to have the choice to move to an improved audience measurement approach in these important markets and applauds NIELSEN for bringing their exemplary business practices to radio," said CLEAR CHANNEL RADIO Pres./CEO JOHN HOGAN. "This gives radio ratings greater accuracy, stronger accountability, and full transparency, and shows the true power of radio to reach the most coveted consumers."
NIELSEN will use address-based sampling (ABS) to recruit sample households. NIELSEN pioneered the use of ABS, which uses randomly selected addresses rather than telephone numbers, in its domestic television measurement in order to reach the 34% of U.S. households that are not covered by current sampling methods, including cell-phone only and many unlisted landline phone households.
One Book A Year Strategy
CUMULUS Co-COO JOHN DICKEY addressed the early criticism of these surveys only being held for two months, once a year. "We are thrilled about NIELSEN and their commitment to radio. We are also impressed that in excess of $100 billion dollars a year in advertising is placed off of NIELSEN data in TV, outdoor and digital.
"Media buyers are comfortable in making decisions off of quality data, bases on one time a year data -- the newspaper industry has been lapping us for years based on this data.
"The nature of this relationship with NIELSEN is one of openness, transparency, and true partners who are committed to true common goals and not a relationship defined by self-interest."
NIELSEN Managing Dir./International Audience Measurement LORRAINE HADFIELD told ALL ACCESS, "It's a definite strategy to do one survey a year with a robust sample as the extreme bounce between the books is more confusing than useful, particularly the 18-34 numbers which are not robust. We took this route so that radio and media buyers can plan using this data with confidence. Unless there are some format changes, in which we would then do some custom survey work, we are most pleased with our current strategy."
ALL ACCESS contacted NIELSEN about MRC Accreditation. Spokesman GARY HOLMES commented, "We will begin discussions with the MRC soon, but their audit cannot be conducted until we are actually in the field this SPRING."
Markets To Be Monitored
For a look at the 50 radio markets that NIELSEN is going to survey, just click here.
And, for a look at a list of the 17 markets that NIELSEN will survey for CLEAR CHANNEL, just click here.