Final word: No Nielsen role in Houston PPM test
After months of negotiations over whether Nielsen Media Research would take part in the Portable People Meter (PPM) test that Arbitron has already begun deploying in Houston, the final decision came down Friday: no. Arbitron says that with the PPM test already ramping up, by the time Nielsen could make a decision on whether to join in, the test would already be up and running and generating ratings data. So, Arbitron says it has withdrawn its invitation for Nielsen to participate in the Houston test. Instead, according to Arbitron, Nielsen will now focus its PPM a more detailed examination of the PPM's audio detection capabilities (since all data collection is based on audio encoding) and on the business, research and financial issues of a potential PPM joint venture with Arbitron. RBR/TVBR got this brief comment from a Nielsen spokesman: "The Arbitron report accurately describes our priorities."
Here's the email that Arbitron's President, PPM and International, Pierre Bouvard, sent to clients.
RE: Nielsen's role in the Houston market trial of the PPM
I'm writing to tell you that Arbitron has informed Nielsen Media Research of changes that redefine Nielsen's role in the Houston market trial of the Portable People Meter ratings system.
At Arbitron's request, Nielsen has agreed to focus its activities regarding the potential Portable People Meter joint venture on two of the three current priorities: the more detailed examination of the audio detection capabilities of the Portable People Meter and the examination of the research, business and financial issues that a potential joint venture must resolve in order to deploy the PPM as a local market ratings service for radio and television.
We have withdrawn our invitation for Nielsen to participate in the day-to-day operations of the Houston PPM market trial. Nielsen will still provide access to their meter/diary television audience estimates in Houston so that the industry can compare the Nielsen television ratings to audience estimates produced by the Portable People Meter system.
Given the progress of the Houston PPM market trial, by the time Nielsen would make its decision, the Houston demonstration market will be up, running and producing audience estimates.
So, instead of spending time determining how Nielsen might fit into to an already functioning Arbitron organization in Houston, we would rather we spend our time with Nielsen focused on those issues that hold the most promise for bringing the PPM to the marketplace.
While some in the industry were concerned about the Houston panel absent any participation by Nielsen, Arbitron has already shown that we can recruit a panel of consumers that is highly representative in terms of key demographics, including race, ethnicity and language preference. It is for these reasons and more that we believe Nielsen's efforts should be focused on the other priorities regarding the potential PPM joint venture.
Where we go from here...
Arbitron is still on track to complete the recruitment of the planned 2,100-person panel at the end of June. We would then begin compiling PPM station-level data for the month of July.
In late August and early September, we would release comparisons of station-level radio audience estimates from July PPM radio data to May-June -July radio diary data produced from a special tabulation.
In September, we would release comparisons of station-level TV audience estimates from July PPM television data to the NSI meter/diary estimates for the July TV survey.
I will be sure to keep you up to date on the latest developments in Houston. If you have any questions, please don't hesitate to call me.
Pierre Bouvard
President, Portable People Meters/International
Arbitron Inc.
Are you reading this from a forwarded email?
