2009-07-30

Analysis: Ethnic radio ratings drop more.

New PPM ratings versus old Diary ratings system - Link below or click title:
http://www.insideradio.com/goout.asp?u=http://ftp.media.radcity.net/ZMST/ArbitronPPM07-30.pdf

Minority-targeted broadcasters have been among PPM’s most vocal critics. A new analysis among adults 18-49 of the top ten stations across the first 20 commercialized markets puts some numbers behind those arguments. It shows their drop is more than double what general-market stations have seen.

A non-ethnic station’s rating has typically fallen 16% with its market rank holding steady. In nine PPM markets, the average general market station even went up in rank. In two markets, Washington, DC and Nassau Suffolk, the non-ethnic station average ratings didn't change at all from diary to PPM.

The situation is much different for formats targeting African Americans and Hispanics. The typical urban station watched its ratings fall 34% while Spanish-language formats were off 42%. Among Black-targeted stations, Chicago saw the biggest ratings decline (-63%) followed by Atlanta (-56%). Only in Los Angeles did urban stations go up in rank.

Not even a single Hispanic-targeted station moved higher. The average Spanish station in Dallas, Miami and San Diego lost more than 60% of its ratings. Philadelphia’s only top ten Hispanic station -- "Rumba 104.5" WUBA -- changed format to rock after PPM was introduced. Veteran Hispanic programmer Bill Tanner says, "It's not hard to see why Spanish stations are less than enthusiastic about PPM."

Consultant Randy Kabrich says, "No one really cares that a station ranked #22 is now #20 or #28 as that really has little impact in overall revenue. The top ten stations are where the revenue picture really is and how jaw-dropping the changes are."

In a call with investors last week, Arbitron CEO Michael Skarzynski says the company is "actively working" to make improvements and win MRC approval, noting the sample is adding more cell phone-only households and increasing delivery targets for minority listeners.

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