RBR Exclusive
Whiting explains; others react to PPM decision at 4As
In an exclusive interview with RBR/TVBR shortly after she arrived in Orland for the AAAAs gathering last night, Nielsen Media Research CEO Susan Whiting explained her decision to pass on doing a PPM joint venture with Arbitron. She said in talks with clients, Nielsen was told that it needed to be able to measure video viewing from new sources, such as the Internet and iPods, with the same quality by which it measures television. "Basically, follow the video," she said. After looking at Arbitron's PPM testing and the financial requirements of a joint venture, which she said would have amounted to television subsidizing radio measurement, Nielsen decided that the joint venture was not the way to go. "We just decided that it was better for us to continue on our path with a portfolio of new tools for television, and radio to have its own path, and that the place we would work together using the PPM was really in the out-of-home measurement and also in Project Apollo. So this decision is only really about the decision we had to make on the option we had to join a joint venture for currency, but it doesn't stop us from - - and we are, in fact going to be talking to Arbitron about using that technology for measuring outside the home and also continue to use it for the Project Apollo joint venture. It's very specifically about television in the home and we had to make that decision yesterday," Whiting said.
As the advertising industry assembled in Orlando for the AAAAs conference, there was plenty of reaction to the Nielsen decision to pass on a PPM joint venture.
Jack Klues, Publicis Media Chairman and CEO: "My immediate reaction is it might have been a better service [if they had gone through with the JV]. What it now creates is less of a monopoly tomorrow than there was today. Someone smarter than me will argue that when things come together, it's not only efficiency, you get a better product. The skeptic in me says it's about efficiency. Because clearly, why do the same reporting through two sources? So I see where it's a benefit to them, not to us as customers. Secondly, inside that comment is it's already enough of a monopolistic situation for audience data collection. And to see it further consolidate, I'm not so sure that could be a good thing."
Dennis Donlin, President/GM Planworks: "One of the great challenges these days is trying to stay abreast of the traditional media issues, particularly the local ones, and also staying current on the digital side. You've got to pick and choose. I'd say we're a little more focused on the digital side right now because you've got good people in the metrics question in the traditional side. We support more electronic and accurate measurement systems across the board. And if they don't do a deal together they'll do it separately, and we will support."
Jean Pool, EVP/Director of North American Operations Universal McCann, Chairman of Media Policy at the AAAAs: "I am shocked. I don't understand why they're not going there. Everything seemed to lead towards Nielsen and Arbitron doing this together. Why wouldn't they? Yes, there are flaws with PPM, but my God, there are flaws with diaries. Why can't we have a service that will measure multiple media with a one-stop shop? I'm disappointed."
Gary Fries, RAB CEO: "I think it's good for radio because it's going to allow the definition of a lot of the things that were part of the infrastructure to be radio-focused. For example, with the Nielsen deal there was a lot of concern about exclusions in the contract that they couldn't do the top 10 markets. As you recall, Houston only became a test market because it was not a Nielsen Top 10 market. Now they're wide open to move it into the major markets at their own pace. The second thing is the industry is demanding a rollout a lot faster than the original rollout. And when you take Nielsen out of the equation, Arbitron can meet those deadlines faster and probably serve the industry better."
Pierre Bouvard, Arbitron PPM President: "We have always told the marketplace that we were pursuing two parallel strategies. One the one hand a JV, on the other hand a faster 'radio first' approach. This just answers the question, it's been one of the lingering questions in the minds of the marketplace, as to how PPM will come to market. PPM will now come to market with a more rapid radio first rollout. I think for radio, this is very exciting news. This will allow radio to roll more markets out faster for electronic measuring."
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