Arbitron temporarily shelves new radio ratings system

The research firm says that radio stations are complaining that the samples used were too small to produce reliable ratings data.

Arbitron still uses the over four decade old paper diary method of calculating ratings. The new system will electronically measure what people listen to.

The participant is asked to carry around a portable device that looks like a pager. It can pick up audio signals from nearby radios and mark what the person is listening to without the need to write it down.

Nine markets were set to get the new system starting in December through September 2008, including New York, Los Angeles, San Francisco, and Dallas. However, in all cases, the rollout has been delayed between three and nine months to September 2008, except Dallas, where it will not be rolled out until December of that year.

"We remain confident in the audience estimates that the Portable People Meter service is producing," Arbitron chief Steve Morris said. "However, over the past three weeks, feedback from our customers, the Media Rating Council and other constituencies has led us to conclude that the radio industry would be better served if we were to delay further commercialization of the PPM in order to address their issues."

Several radio station conglomerates complained to the research firm about two weeks ago, saying the problem of the small sample sizes needed to be corrected as it was a "critical and immediate shortfall."

Radio stations in Houston and Philadelphia are already using the system. Despite the delays in other markets, use of the new system will continue there, Arbitron said.