Out of the Gate, Nielsen Increases Sample Size

11-7-13

It was one of the biggest complaints radio had with Arbitron: sample sizes were too small to accurately reflect radio listening. Arbitron would always respond, if you are willing to pay, sample sizes can increase. After only a few short months under the new ownership, sample sizes will be increasing and Nielsen says there will be no additional cost. Bigger companies have their advantages. Stations were notified with a letter yesterday and the Radio Advisory Council, which concludes today, was notified yesterday.  

Nielsen Audio, formerly Arbitron, is planning to expand sample size across all PPM markets. The largest increases will be in markets 31-48, where the typical sample size will grow 20 percent, and the number of PPM panelists overall will rise by 6 percent.

The larger samples will be in place in the second half of next year; Nielsen said it will focus on African-Americans and Hispanics as it adds new panelists. Nielsen COO Mitchell Habib said "We created this action plan around the core broadcast radio business following a series of conversations with our clients.

The company also said it's working to include demographics typically challenging to recruit. "By investing in sample improvements to recruit the hardest-to-reach demos where it is needed most, our sample will be even more representative of the overall U.S. population, further enhancing our ability to provide our clients with the most accurate measurement of audio reach and engagement. Finally, we?re looking to improve in-station monitoring of PPM encoding?the audio codes that only a PPM can capture and identify which stations a consumer is listening to?by automating alerts and adding additional ways for our clients to monitor their encoded audio."

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The Song Remains The Same on Sample Size

10-19-2012

The two biggest complaints you hear from broadcasters about Arbitron are sample sizes being too small and prices too high. The Arbitron Radio Advisory Council addressed the sample size issue this week and the result was the same, more work needs to be done. RAC Chairman Don Benson said we need to be in a better place and we are not there yet. It was almost a carbon copy of the RAC report from May, the last time the group met. 

Benson said, Arbitron provided updates on ideas to improve sample quality and effective sample size, based on the Council's request back in the spring. "I will tell you that Arbitron has been responsive and shared a series of ideas. While some good work has been done by both Arbitron and the Council, particularly with some subcommittee work, on this process, the concern over sample still exists. We are simply not there yet. There is no one silver bullet that is going to be an easy resolution for this issue. There is more work to be done by both parties and it is continuing. I will tell you, this remains, for the Council and it's members, an essential priority going forward."

When asked what that "better place" is on sample size, and whether or not there was even unity within the industry on that "better place," Benson said  that's a very good question. "I think there are a series of different opinions, as you could imagine. You've got a broader spectrum of clients and members in there. I think that is being more crystallized and we are really, again, just evaluating different ideas as they are presented to us. Each has it's own individual impact. I would hate to escape back to the point about there not being one simple solution, but there really isn't. That gives you the option to look at it as a series of different approaches on how to best remedy it. Each has its own contributory impact to it. The feeling is that we need to get it to an improved position from what it is."

Benson wasn't specific about what's being discussed, only that they are in the idea discussion stage. "I think that they've been honed down a bit. But, as we move along, there are also a variety of ideas that weren't necessarily discussed in the early stages that I think will get discussion as we go forward. The choices, I think, just aren't limited to... and the discussion points aren't limited to what we covered back in the early summer when we talked about that timing issue with Arbitron. Ideas have come out yesterday. That's why it really is a process and a discussion, and it seems like it has been going on for a long time. And, it has, but I think we are really making a concentrated effort to get this resolved."

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Is Sample Size Costing Radio Revenue?

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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