Radio-ranking firm Arbitron, and the analysts who cover it, are betting a new product launched Thursday will pay off. The portable people meter, or PPM, is a small, wearable device that detects what radio stations people listen to. Some are outfitted with global positioning systems to track where listeners go after hearing an ad.
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But analysts say 2007 could be a tough year for Arbitron, partly due to the costs associated with the PPM rollout. “We expect lumpy near-term results,” said Mr. McKenzie. But by 2008, the company’s earnings growth should pick up again, “as radio stations, ad buyers and advertisers come to embrace the more reliable and detailed measurement system,” he said.
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