Radio Ratings Rumble

The two largest radio congloms, CBS Radio and Clear Channel Communications, appear ready to rumble over a new electronic ratings system developed by Arbitron that is pending approval by an industry accreditation board.

If it receives the OK, the “Portable People Meter” could replace the traditional pencil-and-diary method currently used to determine radio ratings. The PPM is a small device people would carry that would pick up electronic codes embedded in radio broadcasts.

CBS Radio, formerly Infinity, and other radio companies have given their blessings to the PPM pending approval from the Media Ratings Council, which is expected by September. Clear Channel, however, then threw CBS off a panel established to evaluate measurement systems submitted in response to a Clear Channel-issued Request For Proposals.

At a recent industry conference sponsored by Bear Stearns, CBS Radio CEO Joel Hollander lashed out at Clear Channel, calling its moves “divisive.”

Hollander urged major broadcasters to adopt Arbitron’s electronic ratings system, saying that even though the technology was not perfected, it was a good enough starting point.

Radio broadcasters and advertisers are in broad agreement that the current diary-keeping system is antiquated and in need of updating to provide fuller and faster ratings data to advertisers.

However, the new system will be far more costly, and many broadcasters are still deep in negotiations with Arbitron.

Entercom Communications CEO David Field said he believes strongly in electronic measurement but “we think the process needs to play out.” Entercom has not yet approved the PPM.

Clear Channel, Entercom, other broadcasters and advertisers are evaluating the PPM and a system by Media Audit/IPSOS.