Report Indicates Portable People Meter Ratings Will Allow Advertisers to Make More Rapid Adjustments When a Change in Audience Occurs
The United States Federal Trade Commission (FTC) recently issued a report entitled Self Regulation in the Alcohol Industry that, among other matters, highlighted the need for more widespread electronic measurement of radio. The FTC indicated that adult beverage advertisers would be able to use the more frequent radio data that electronic measurement provides to better comply with the industry’s voluntary guidelines.
“This FTC report illustrates one more reason why the radio industry needs more timely reporting of audience estimates,” said Pierre Bouvard, president, Sales and Marketing, Arbitron Inc. “Our Portable People MeterTM ratings services will help adult beverage advertisers use radio more responsibly. Electronic measurement will put the medium on par with television, which already has the capability to account reliably for month-to-month changes in audience composition.”
In the top local markets, television has the ability to update demographic data at least once a month which in turn helps television advertisers mitigate exposure to alcohol advertisements by people under 21 ““ thanks in large part to the broader deployment of electronic people meters in that industry.
The FTC highlighted its concerns regarding frequency of ratings reports in the following paragraph:
First, audience composition can change unexpectedly due to programming modi?cations or competitive factors. In the case of television, national audience demographic data are updated at least monthly and companies can adjust their purchases frequently”¦advertisements placed on radio and in magazines may run for many months before a company learns of the need to modify a placement.