Arbitron

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Arbitron Inc.
Type Public NYSE: ARB
Founded Washington, DC
Headquarters New York City, New York, United States
Area served United States
Key people Stephen B. Morris
Pres. & CEO
Industry Media Research
Products ratings data,
Website www.arbitron.com

Arbitron (NYSE: ARB) is a radio audience research company in the United States which collects listener data on radio audiences similar to that collected by Nielsen Media Research on television audiences. It was founded as American Ratings Bureau by Jim Seiler in 1949, and became Arbitron in the 1960s.

Contents

[edit] Methods

[edit] Survey

Arbitron collects data by selecting a random sample of a population in roughly 100 metros throughout the United States four times a year. An additional 200 markets are surveyed in the Spring and Fall. People in the sample are asked to maintain a written diary describing each radio program listened to. Each selected household agreeing to participate is provided a diary for each member aged 12 and older for one week, beginning on Thursday and ending the following Wednesday. At the end of the week, the completed diaries are returned to Arbitron by post.

A new random sample is selected to participate each week. Arbitron's surveys are broken down into four key ratings periods, roughly corresponding with the seasons and bearing their names.[1] The term commonly used in the radio industry for these quarterly ratings is Arbitron book, or more specifically, the Spring book, Fall book, etc. Arbitron also releases monthly information twice between the release of each book. These ratings, called Arbitrends are labeled Phase I and Phase II. The Arbitrends, despite being mid-term indicators, reflect the entire three-month block leading up to them.[2] Arbitron surveys listener habits from six a.m. to midnight from Monday through Sunday[citation needed], 48 weeks per year. There is given a one week break following the Spring book, and an additional three weeks break following Fall book.[3] Turnaround time for release of data from the end of the survey period is approximately three weeks.

After collection, the data is marketed to radio broadcasters, radio networks, cable companies, advertisers, advertising agencies, out-of-home advertising companies and the online radio industry.[4] Major ratings products include cume (the cumulative number of unique listeners over a period), average quarter hour (AQH - the average number of people listening every 15 minutes), time spent listening, (TSL), and market breakdowns by demographic. Its important to understand that the CUME only counts a listener once, where as the AQH can count the same person multiple times, this is how to determine the TSL. For example, if you looked into a room and saw Fred and Jane, then 15 minutes later saw Fred with Sara. The Cume would be 3 (Fred, Jane, Sara) and the AQH would be 2. (an average of two people in the room in a given 15 minute period)

The seasonal books' 12+ ratings, a measurement of the overall number of people 12 and over listening to a particular station, are available as a free service for noncommercial use in most markets, except in cases where radio companies request an embargo. More detailed data, such as demographics and Arbitrends, are available only by paid subscription.

[edit] Portable People Meter

With the interest in the collection of more accurate ratings data, Arbitron has introduced the Portable People Meter (PPM). The PPM is a wearable portable device much like a pager or cell phone, that electronically records the listening behavior and history of a single panelist throughout the day for several months. The information generated from each monthly survey is used as the currency for radio stations and advertisers/agencies to buy and sell radio advertising. The PPM currency is currently live in Houston, Philadelphia, and Dallas. New York will be live by the end of 2007, and the rest of the "top ten" U.S. markets will be measured with the PPM by the end of 2008.[1] In 2006, Arbitron sued competitors International Demographics and IPSOS concerning 3 patents related to technology used by the Portable People Meter.[5]

[edit] Financial Performance

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[edit] Top 10 of the Market Research Sector 2006

Rank Company Sales in 2006
(million USD)		 Growth in %
1 Nielsen Company 3,696.0 2.6
2 IMS Health Inc. 1,958.6 8.9
3 Taylor Nelson Sofres 1,851.1 2.5
4 Kantar Group 1,401.4 4.1
5 GfK AG 1,397.3 5.4
6 Ipsos 1,077.0 6.5
7 Synovate 739.6 9.5
8 IRI 665.0 6.6
9 Westat 425.8 0.8
10 Arbitron 329.3 5.9

[edit] See also

[edit] References

  1. ^ Survey Schedule: 2006-2007. Arbitron. Retrieved on 2007-01-11.
  2. ^ Roger D. Wimmer. Arbitron Questions. RogerWimmer.com. Retrieved on 2007-01-11.
  3. ^ Arbitron Ratings Data. Arbitron. Retrieved on 2007-01-11.
  4. ^ What We Do. Arbitron. Retrieved on 2007-01-11.
  5. ^ "Arbitron Inc. Files Patent Infringement Suit against International Demographics, Inc., IPSOS Group S.A. And Its Related Entities.", Business Wire, 11-OCT-06. Retrieved on 2008-04-26. 

[edit] External links