Arbitron Makes Noise With New Electronic Radio Rating System
Starting Thursday, Arbitron Inc. (ARB) is using electronic monitors to measure radio ratings, the first time the industry is turning to technology to replace the pencil-on-paper ratings logs abandoned long ago in major TV markets.
Ratings, of course, are critical to set ad rates, and the roll out of electronic measurement - like the switch to electronic television ratings beginning in the 1980s - brings the promise of quicker and more accurate tallies of the radio listening audience. It also could prove profitable for Arbitron, shares of which are nearing eight-year highs.
For radio companies, the embrace of electronic ratings could make their medium a more attractive destination for advertisers, who have long worried that they don't have a reliable measure of which radio stations people listen to and for how long. Particularly in an era where Internet users can be counted with every mouse click, the pressure in on for radio and other media to provide hard evidence that advertising on its medium works. [ MORE ]
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