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Nielsen radio ratings service begins test next month
The first sweep of all 50 markets won't come until the spring of 2009, but The Nielsen Company is jumping right into the US radio ratings business with a test next month in one of those markets. Lorraine Hadfield, who'll be heading the new venture, won't identify the market because she doesn't want any stations to try any tricks to skew the ratings. Nielsen already measures radio in 11 other countries and Hadfield, pictured, had plenty to say about how her company's service is going to be different from the "status quo" - which we all refer to as Arbitron.
RBR observation: Neither we nor anyone else thinks Nielsen will be content with a service for 50 smaller markets. This is the starting point of a head-to-head competition with Arbitron. In our view, that's good for radio. It should make Arbitron better and provide broadcasters with something they've been seeking for decades - more choice.
Dickey hails ratings competition as "excellent development"
Cumulus CEO Lew Dickey isn't worried about having radio ratings only once a year in his company's 50 smaller markets. He told RBR/TVBR that advertisers are concerned about the quality of data and he said it was value, not price, that drove the Cumulus effort to find a new ratings vendor. With its reputation established in television, Dickey calls Nielsen the "gold standard" for media measurement and says its launch of a new radio ratings service is an "excellent development for radio." |
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Arbitron vows to fight Nielsen head-to-head
Despite the loss of nearly all revenue from the 50 markets where Nielsen plans to launch its new radio ratings service next year, Arbitron says it will continue to measure all 50 of those markets and defend its turf. "Once a year measurement is a step backward," said Arbitron CEO Steve Morris. And now that the battle has begun, he's not ruling out an attack on Nielsen's turf - using PPM to measure television.
RBR observation: It will be interesting to see how many years Arbitron will be willing to keep generating ratings in markets where it is getting little or no revenue. Both Cumulus and Clear Channel have signed multi-year contracts, so they're not likely to be won back soon. Meanwhile, the smaller players in those markets won't provide nearly enough revenue to begin to cover Arbitron's costs - and some of them might switch over to Nielsen as well. A long and bitter fight has been launched in the radio ratings business.
Eastlan weighs in on Nielsen's
proposed ratings service
In response to Nielsen's proposed entry into the radio ratings business announced yesterday, Eastlan Ratings President/CEO Mike Gould tells RBR he thinks the methodology that's being proposed in the Nielsen-Cumulus solution is expensive. "And that's just not consistent with what we hear is going on in broadcasting" he said. And referring to PPM, he asks, "Why is part of the industry going to be measured daily/hourly and the other part is going to go to being measured half as frequently? That doesn't make a lot of sense."
RBR observation: Remember, just because they are going to one book doesn't mean it will be less expensive. It will be a larger sample size. Cumulus had asked for no diaries in its RFP, as well. So that is a bit confusing. But bottom line, look for Arbitron and Nielsen to begin to wage a battle royale in many markets-and a potential purchase is not out of the question. Where Eastlan will land in that process should be interesting because as of right now they are smack in the middle of this fight.
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WASHINGTON BUSINESS REPORT ™ |
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Adelstein wants Arbitron investigated by FCC
FCC Commissioner Jonathan Adelstein wants Chairman Kevin Martin to kick off an immediate probe into the effect of Arbitron's new PPM technology on minority radio stations. He commended the inquiry Martin kicked off 9/4/08, but argues that it's time to take firmer action. In a letter, Adelstein cited numerous arguments supporting the FCC's standing to jump into this controversy.
RBR observation: We understand the excruciating labor pains associated with the effort to make PPM an effective standard, and we understand the controversy. We also understand that radio must bring its accountability system into the 21st Century, and we remain unconvinced that the FCC, with no expertise in ratings matters, is the proper venue to sort all this out.
Situation even murkier for Stevens
A Senate Republican colleague of Ted Stevens (R-AK) says the votes are there to force him out of the party. But before taking that step, the caucus will wait and see if early-voting, late-to-be-counted Alaska voters have done the job for them at the ballot box. After emerging with a lead back on Election Day, Stevens has fallen behind challenger Mark Begich (D-AK) as other ballots have been counted. And Stevens' own pollster says he has no chance to regain the lead.
RBR observation: With Commerce Committee chair Daniel Inouye (D-HI) apparently headed for Appropriations and with Stevens' prospects getting bleaker every day, we're in for a new-look Commerce Committee for the 111th Congress. So there will be a wildcard in the White House, leading to another wildcard at the FCC, and the Commerce Committee will make it a triple-play.
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Late rally misses broadcasters
Wall Street staged a late rally after the S&P 500 Index bumped a five-year low and brought bargain hunters into the market. The Dow Industrials finished the day up 151 points, or 1.8%, at 8,425. The S&P 500 and Nasdaq Composite were also up.
But radio stocks were down. The RBR Radio Index declined 0.517, or 2.1%, to a record low of 23.970. Regent was down 33.8%, Arbitron 10.3% and SBS 10%.
Here's how stocks fared on Tuesday
Company |
Symbol |
Close |
Chng |
Company |
Symbol |
Close |
Chng |
Arbitron* |
ARB |
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21.69 |
-2.48 |
Fisher |
FSCI |
|
20.67 |
-3.63 |
Beasley* |
BBGI |
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1.88 |
-0.12 |
Google |
GOOG |
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297.42 |
-2.70 |
CBS CI. B |
CBS |
|
6.07 |
-0.04 |
Hearst-Argyle |
HTV |
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10.46 |
-0.12 |
CBS CI. A |
CBSa |
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6.06 |
-0.31 |
Journal Comm. |
JRN |
|
1.94 |
+0.04 |
Citadel* |
CDL |
|
0.25 |
+0.03 |
Lincoln Natl. |
LNC |
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12.16 |
-0.39 |
CC Media |
CCMO |
|
3.00 |
0.00 |
Radio One, Cl. A |
ROIA |
|
0.35 |
-0.12 |
Cox Radio* |
CXR |
|
4.05 |
-0.02 |
Radio One, Cl. D* |
ROIAK |
|
0.18 |
+0.03 |
Cumulus* |
CMLS |
|
0.54 |
-0.04 |
Regent* |
RGCI |
|
0.14 |
-0.07 |
Debut Bcg. |
DBTB |
|
0.27 |
0.00 |
Saga Commun.* |
SGA |
|
2.87 |
-0.03 |
Disney |
DIS |
|
20.67 |
+0.93 |
Salem Comm.* |
SALM |
|
0.86 |
0.00 |
Emmis* |
EMMS |
|
0.40 |
+0.01 |
Sirius XM |
SIRI |
|
0.20 |
-0.03 |
Entercom* |
ETM |
|
0.81 |
+0.04 |
Spanish Bcg.* |
SBSA |
|
0.12 |
-0.01 |
Entravision |
EVC |
|
0.72 |
+0.02 |
Westwood One* |
WON |
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0.13 |
0.00 |
*Component of the RBR Radio Index
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Only on RBR.com
On Nielsen Radio
Here is my initial
assessment of the plans
Ad Business Report
Buyers comment
On Nielsen-Cumulus deal
Media, Markets & Money
NC AM goes on the Lamm
Acquisition of WMPM-AM forms new AM duopoly in Raleigh-Durham |
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NABOB dinner scheduled
If you're bringing a gift, it should be silver, as the National Association of Black Owned Broadcasters holds its 25th Annual Communications Award Dinner next year. The annual event will be held 3/19/09 at the Marriott Wardman Park Hotel in Washington.
Rock Jam announces KSTR as new sponsor
MBC Grand Broadcasting announced it is working with Rock Jam USA as the exclusive radio sponsor on the Western Slope. One of the largest concert events in Western Colorado, second only to Country Jam, Rock Jam provides quality rock entertainment. MBC acquired KSTR in 2005 and returned the station to its original rock format with the goal of growing the station to become the exclusive home of Rock Jam.
NYMRAD to honor top 25 advertisers at holiday party
New York Market Radio Association (NYMRAD) celebrates 25 years of serving the needs of radio stations, representatives and the advertising community. This year the party will kick off the holiday season at the Marriott Marquis, Friday, December 5th, honoring the Top 25 Advertisers. |
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News you won't read any where else. RBR--First, Accurate, and Independently Owned.
RAB posts GM plea
Asks help from the radio biz on getting the government bailout dollars for the auto industry.
11/18/08 RBR #226
Arbitron cuts its phone bill
No more will Arbitron have to install and pay for a conventional land line when a cell phone-only household joins a PPM panel.
11/18/08 RBR #226
Consumers anxiously
await Black Friday deals
Though the majority of consumers have not even put a dent in their shopping list, traditional winter apparel and personal, inexpensive items like DVDs, CDs and books will be the first things they stock up on as they begin their holiday shopping. Ideas for your Sales department.
11/18/08 RBR #226
Local Internet
Radio
is the New FM!
Interesting things are happening. NAB does not feel that Internet Radio is worthy of membership, nor does my state organization PAB. This is amusing to me because I remember well when the NAB didn't consider FM "Real" radio and as a result the NAFMB was founded. Local Internet Radio is the future. XM, Sirius and even the vaulted HD-Radio are toast.
11/18/08 RBR #226
What cookies can teach us about news branding
Don't mistake a product feature for a brand...breaking news, weather and consumer stories are not your brand. Your newscast may have lots of breaking news, but your brand is about excitement, adventure and chaos. If you're the breaking news station and you want to live your brand, stop showing so many shots of your live trucks racing down the street. Start showcasing the Indiana Jones adventure ride
11/18/08 RBR #226
For complete content and previous RBR issues, analysis, interviews,
and more...see and bookmark www.RBR.com |
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