5-10-2012
They are as secretive as the names of the Navy Seals that killed Bin Laden, with NDA's signed all around to make sure details of their meetings are not leaked to the pesky radio trades. However, once complete, Arbitron and its Radio Advisory Council, hold a 30 minute conference call to highlight a few of the discussions from the meeting. Yesterday, Lincoln Financial CEO and RAC chair Don Benson (pictured) said the dialogue at the meeting was "spirited" and the feedback to Arbitron was "direct." Two major concerns according to Benson are Arbitron's sample size and how quickly things get done. Benson said Arbitron's sample size is a "significant" concern and "we need to be in a better place" on sample size.
Benson made it clear that broadcasters are not happy with Arbitron's sample sizes. And, when asked if he thought the sample size was costing the radio industry revenue, after a very long pause, Benson said the industry needs stable ratings. "I think that having stable ratings, that aren't volatile, that have a higher degree of reliability make for a more stable, reassuring medium to purchase. I think that it is important that we have quality there and the we have confidence there and that we have a level of assuredness there. Getting to a better sample is going to get us to a better place and going to make our industry look more solid. If you are sitting there as a media buyer and you see volatility in numbers, I think it makes you, at times, a little uncertain. We are asking for investigation into helping the sample in hopes of getting it to a more stable point, or what council feels is a more stable point."
Benson said the discussion about sample size was not hostile nor was it docile. "I think there was a great focus. To come back to what we were talking about dealing with sample size, also the desire to move things along at a faster pace. The need for speed. That is the need for speed and getting sample size issues addressed. We didn't specifically offer ideas to Arbitron on how to go solve problem. We shared what our concern for the problem was, how genuine our concern was. They listened. They are off to do homework, to come back to us as quickly as possible with options on how to increase share and different ideas for that.
Benson said when you have that many people in one room, you have a bevy of different ideas. "I think what we want to see is feedback from Arbitron. We shared with them our feelings about this issue in a very open and frank dialogue and we need to hear from them their outlook and their suggestions on how to get to improving sample size. We are going to wait for them. Were there different opinions? Sure.I think we are just going to wait and see what information we get back from Arbitron before we form an opinion. I think the sample issue is a significant issue and is one that is a concern, and a sizable concern for everybody. We are just waiting for feedback from Arbitron on what they see and what might be involved in getting to a better place on the sample issue. Then, we will just evaluate based on the information they give to us."
Arbitron meets with the Radio Advisory Council two times per year. Both sides have agreed to add a third meeting.
(5/11/2012 6:34:15 AM)
There is a simple solution. Offer competitive ratings services at a reasonable pricepoint. When a company is viewed as a telemarketer and receives as little as 20% return on books, that is virtually no sample size. Radio station owners need to form a coalition and drive the market by demanding an internet/phone and app ratings system with large samples and multiple companies to choose from.
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