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Nielsen to measure US radio - the diary returns

Two US broadcasters – Cumulus Media and Clear Channel Radio – have opened the door for the Nielsen Company to measure radio audiences. Nielsen will measure 50 small US cities starting Q3 2009. Nielsen has been active in radio measurement in the rest of the world but has stayed television-only in the US, giving Arbitron a near monopoly.

Nielsen diaryNielsen will survey radio listening using its ‘sticker diary,’ reported US radio trade publication Radio Business Report (November 18). Survey sampling will be ‘address-based,’ similar to that used by its television panels.

Arbitron’s CEO Steve Morris quickly released a statement, saying the move is “a step backward.”  US broadcasters have leveled a range of criticisms toward Arbitron over the years, largely due to its near-monopoly for radio ratings. Arbitron has, mostly, faced down critics with a series of expensive innovations. The most controversial of those innovations is electronic measurement, which Arbitron is rolling out with its Personal People Meter (PPM) technology.

Some broadcasters oppose the change to electronic measurement, fearing the shift in ratings method will negatively impact station results. That means money. Arbitron has long countered that and other arguments by invoking media buyers demand for electronic measurement. Recently several broadcasters successfully lobbied New York and New Jersey Attorneys General for investigations.

A small market radio deal is small potatoes for Nielsen, particularly in light of the shuffling caused by ad giant WPP’s takeover of research company TNS. To satisfy anti-trust authorities, largely in Europe, WPP gave up its 50% state in AGB Nielsen Media Research. The other option was giving up TNS’ European television measurement business. Nielsen will now own 100% of AGB Nielsen. A year ago Nielsen lost the important BARB UK television contract, which TNS takes over in 2010. When the radio deal was announced, Nielsen crowed that it now measures 75% of the world’s television markets.

And Nielsen appears to be moving quickly on other fronts now that the WPP-TNS deal has been negotiated. Nielsen Online announced (November 18) it will give up its GNETT online measurement survey in the UK in favor of a joint industry standard. This places Nielsen as a bidder for the online measurement contract to be tendered in 2009. Aside from the BARB contract starting in 2010, TNS bid for and won pilot funding for a London survey for radio measurement provider RAJAR to test Arbitron's PPM device. That trial was abandoned in April. RAJAR's radio surveys are provided by another measurement biggie, Ipsos MORI.

At the end of October AGB Nielsen was awarded Ireland’s television measurement contract to begin in 2010.


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