Monday, September 21, 2009

Patrick Bittel Critique #1

The article I read, "Radio Shows Tune In to Listener Habits," can be found in the technology section of the Wall Street Journal Online. This article discusses the fact that Radio programmers are now in a position where they can collect incredible amounts of data about specific listener habits. This allows them to program their shows down to the second, in order to keep as many listeners interested as possible. The article centers around none other than Tv and Radio personality Ryan Seacrest, and the use of audience-measurement systems, and the affect they have on his show.

Two years ago, Arbitron Inc.'s Portable People Meter started replacing radio's diary-based audience measurement system, a system in which people documented in written form what they listened to on the radio. The People Meter is no bigger than a cell phone, and is carried by consumers involved in this study. It electronically relays which stations the consumer is listening to, and where they are while they listen to these stations. After collecting data for two years, the directors of this study can figure out perfect ratios of talk time to music in order to keep listeners from changing stations. It also has provided them with enough data to figure out perfect commercial ratios. The down side, according to Ryan Seacrest, is that programmers put more pressure on the talk show hosts to perform following certain ratios.

Although it provides a substantial amount of data, The People Meter is being investigated by many attorney generals across the U.S., as well as the Federal Communications Commission review. This is due to multiple claims of the fact that this device undercounts minorities. Many radio companies have pledged to stick with the device because it offers such great information to advertisers, especially in a time when money for advertising is slowly declining. It is stated that radio advertising this year will shrink by 14%, or $16.46 billion. When radio companies can find specific problem areas for their shows, they can fine tune their broadcasts in order to appeal to all listeners.

CBS has already scheduled station changes based on the People Meter data. The meter showed that certain audiences were not responding as much to male-oriented chat as much as others. CBS's newest station, KAMP is now a top pop station in LA due to this meter. A sufficient amount of stations have already begun tweaking advertising schedules based on this data. By running shows that get to the point, managers can continue to cut back on resources as well as stimulate interest in their shows, and also sponsors.

With all of this in consideration, I do believe that this meter crosses the line between data gathering and personal privacy. If this device can record radio data, what else can it record? How far are it's limits of recording? In a day and age in which personal privacy is crucial to personal finances, how much are people willing to risk by participating in this study? I hope that in the near future the Federal Communications Commission can further understand the extent of this power, and regulate it so that it is used in a way that is truly beneficial.

The Arbitron People Meter is a great way of gathering data. The habits of those that listen to radio shows can provide valuable information to those in charge of advertising via radio broadcast. This technology leads to better organization and better upper management of radio programming. I do believe that Arbitron needs to deal with the claim that minorities are under represented by the People Meter. If theres false data, false information could jeopardize the legitimacy of what the People Meter was actually meant to do. Although Arbitron claims that minorities are equally represented in this study, they need to make that information available to those considering using that data. Overall I think that it is an incredible way of documenting data that could potentially save the advertising industry $16.46 billion dollars this year.

2 comments:

  1. I agree that this Arbitron People Meter is a great invention and should be implemented in order to aid radio station's marketing strategy. I don't think gathering information on when people listen to the radio, or where they are when they listen is much of an invasion of privacy. It's a mere poll that helps radio station's gather information, in order to advance their business.

    I do not think that this Arbitron People Meter will save radio though. With iPods becoming the sole source of music and media in cars, radio stations are going to have the same effect 8 tracks had. I feel they will soon be outdated. I see in all new cars and stereos that the auxilary cord is prominently put in front so people can play their iPods. So overall, The Arbitron People Meter will definitely save some radio station's audience, but the future of radio stations looks glim.

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  2. This article was really interesting to me as an avid radio listener because I feel like the People Meter that was used by these stations will really help the radio market expand. I remember throughout high school driving every morning for thirty minutes listening to the radio and at least a third of my ride would be commercials, which I hated. By use of the People Meter radio listeners such as me, will be able to modify all of our favorite radio shows by our listening habits. Commercials can be shorter and more to the point, radio shows will have more of our favorite segments, and favorite radio personalities. Entertainment as we know it will be shaped by the entertained by use of the People Meter.

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