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Arbitron Completes First Phase of Portable People Meter U.S. Market Trial.


Business Editors

NEW YORK--(BUSINESS WIRE)--December 13, 2001

Third Comparison With Existing TV And Radio Audience Measurement

Methods Marks Successful Milestone In Portable People Meter The Portable People Meter (sometimes mistakenly "Personal People Meter") or PPM, is a device developed by Arbitron to measure how many people are listening (or at least exposed) to individual radio stations and television stations, including cable TV.  U.S.

Rollout

Arbitron Arbitron (NYSE: ARB) is a radio audience research company in the United States which collects listener data on radio audiences similar to that collected by Nielsen Media Research on television audiences.  Inc. (NYSE NYSE

See: New York Stock Exchange
:ARB) today marked the successful completion of the first phase of the Portable People Meter (PPM) U.S. market trial with the release of a third round of ratings comparisons for its new television, cable and radio audience measurement system.

Compared to ratings reported by current TV and radio audience measurement systems, the Portable People Meter reports higher total-day average quarter-hour (AQH AQH Average Quarter Hour (radio ratings)
AQH American Quarter Horse
AQH Average Quarter of an Hour (advertising) 
) estimates for consumer use of electronic media - radio, TV and cable. These findings indicate that Arbitron's new ratings technology is tracking media exposure missed by today's generation of TV and radio ratings methods.

"Our success in the first phase of the U.S. market trial keeps us on a fast track to deploy the Portable People Meter in local markets across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ," said Marshall Marshall.

1 City (1990 pop. 12,711), seat of Saline co., N central Mo.; inc. 1839. In a large farm area, it is a processing center for grain, eggs, meat, and dairy products. Marshall is the seat of Missouri Valley College.
 Snyder Snyder, city (1990 pop. 12,195), seat of Scurry co., NW Tex., in a prairie and mesquite region; inc. 1907. Oil production is the city's main industry; natural gas is also refined and processed. , president, Worldwide Portable People Meter Development, Arbitron Inc. "By the second quarter of 2002, the industry will have the first direct comparisons of PPM audience estimates for individual radio and TV stations as well as cable networks. This is the information our customers have been looking forward to as they prepare to use a new way of measuring radio, television and cable audiences."

Since December December: see month.  of 2000, the Portable People Meter has been undergoing U.S. market trials in Wilmington, Delaware Wilmington is the largest city in the state of Delaware and is located at the confluence of the Christina River and Brandywine Creek, near where the Christina flows into the Delaware River. , which is within the Philadelphia Philadelphia, ancient cities
Philadelphia, name of several ancient cities. One was in Lydia, W Asia Minor (now W Turkey). At the foot of Mt. Tmolus and near the location of modern Alaşehir, it was founded in the 2d cent. B.C.
 TV market. Arbitron has also released ratings results from the first phase of the trial on July July: see month.  19 and September September: see month.  24, 2001.

The next phase in Arbitron's demonstration of the PPM is to expand the sample to at least 1,500 people across the entire Philadelphia Designated Market Area (DMA (1) (Digital Media Adapter) See digital media hub.

(2) (Document Management Alliance) A specification that provides a common interface for accessing and searching document databases.
(R)) beginning in January January: see month.  2002. The increased sample size in the second phase of the trial will allow direct comparisons of audiences for individual radio stations and formats, TV stations and cable networks.

Nielsen Noun 1. Nielsen - Danish composer (1865-1931)
Carl August Nielsen, Carl Nielsen
 Media Research is providing financial support and its television survey research expertise in this trial of the Portable People Meter. Nielsen also has an option to join Arbitron in the commercial deployment of the Arbitron Portable People Meter in the United States.

The PPM is a pager-sized device that is carried by consumers. It automatically detects inaudible codes that TV and radio broadcasters as well as cable networks embed em·bed   also im·bed
v. em·bed·ded, em·bed·ding, em·beds

v.tr.
1. To fix firmly in a surrounding mass: embed a post in concrete; fossils embedded in shale.
 in the audio portion of their programming using encoders provided by Arbitron. At the end of each day, the survey participants place the meters into base stations that recharge re·charge  
tr.v. re·charged, re·charg·ing, re·charg·es
To charge again, especially to reenergize a storage battery.



re
 the devices and send the collected codes to Arbitron for tabulation tab·u·late  
tr.v. tab·u·lat·ed, tab·u·lat·ing, tab·u·lates
1. To arrange in tabular form; condense and list.

2. To cut or form with a plane surface.

adj.
Having a plane surface.
. The meters are equipped with a motion sensor A device that measures or detects a real-world condition, such as motion, heat or light and converts the condition into an analog or digital representation. An optical sensor detects the intensity or brightness of light, or the intensity of red, green and blue for color systems.  that allows Arbitron to monitor the compliance of the PPM survey participants every day - a quality control feature unique to the Arbitron Portable People Meter in the realm of media research.

Summary of Ratings Results

Compared to existing methods of measuring media audiences, the Portable People Meter continues to report higher average quarter-hour audiences on a 24-hour day, total-week basis for the combined electronic media outlets that encoded full time. The October PPM results show increased average quarter-hour audiences for cable and radio and equivalent AQH audiences for broadcast TV. In the previous two comparisons, the PPM reported equivalent average quarter-hour audiences for radio while showing increased average quarter-hour audiences for broadcast TV and cable.

                        Total Media Comparisons
                  Average Quarter-Hour (AQH) Ratings
                              Persons 12+
                        Encoded Media Outlets(1)

                                                         Radio:
                                                     Arbitron Diary
                                                  Wilmington Metro
 Monday-Sunday,                                 Broadcast TV & Cable:
   Total Day                                    Nielsen Media Research
                   Portable People Meter          Philadelphia DMA(R)
                                                        Oct 2001

 Combined Media           25.6                            22.2
 Broadcast TV             11.5      4                     11.3       5
 Cable                     4.6      4                      2.0       5
 Radio                     9.5      2                      8.9       3

1. 38 radio stations, 8 broadcast TV stations and 15 cable outlets
   were encoded full-time for the reported time periods.

2. Estimates for September 20, 2001 - October 17, 2001.

3. Arbitron Wilmington Metro Diary Estimates, Fall 2001 Phase 1
   (September 20, 2001 - October 17, 2001).

4. Estimates for September 27, 2001 to October 24, 2001.

5. Nielsen Media Research Meter-Diary Integrated October 2001
   Estimates for the Philadelphia DMA.

      For radio, the PPM again reported a higher average daily
cumulative audience: 79.5 percent for the PPM vs. 66.6 percent for the
radio diary. The PPM also showed less time spent listening for radio:
2 hours and 51 minutes per day for the PPM vs. 3 hours and 12 minutes
per day for the diary.

               Average Quarter-Hour (AQH) Radio Ratings
                              Persons 12+
                           Wilmington Metro
                        Encoded Radio Stations(1)

 Daypart                      PPM(2)             Arbitron Diary(3)
 M-F 6A-10A                   15.7                   17.7
 M-F 10A-3P                   16.4                   15.3
 M-F 3P-7P                    15.8                   13.8
 M-F 7P-Mid                    6.0                   5.4
 M-F Mid-6A                    2.5                   1.9
 Sa-Su 6A-Mid                  8.5                   8.0

1. 38 radio stations were encoded full-time for the reported time
   periods.

2. Estimates for September 20, 2001 - October 17, 2001.

3. Arbitron Wilmington Metro Diary Estimates, Fall 2001 Phase 1
  (September 20, 2001 - October 17, 2001).

      The PPM continues to report shifts in listening patterns by
daypart. Morning-drive AQH ratings are slightly lower according to the
PPM, while Monday-Friday midday, afternoon drive, evening and
overnight AQH ratings are higher as are weekend AQH ratings.

                  Average Quarter-Hour (AQH) Ratings
                              Persons 12+
                        Encoded Media Outlets(1)

 Monday-       Radio                Broadcast         Combined Media
  Sunday                           TV and Cable
             PPM(2)  Arbitron    PPM(4)    Nielsen     PPM  Existing
                     Wilmington            Phila. DMA           3,5
                       FA01(3)              Oct 01(5)
 5A-10A      11.1      12.7      9.6          8.1     20.7     20.8
 10A-4P      15.3      14.2     10.8          8.9     26.0     23.1
 4P-8P       12.5      10.3     23.4         20.2     35.9     30.5
 8P-Mid       5.2       4.7     34.8         31.1     40.0     35.8
 Mid-5A       2.2       1.1      7.9          3.4     10.1      4.5

1. 38 radio stations, 8 broadcast TV stations and 15 cable outlets
   were encoded full-time for the reported time periods.

2. Estimates for September 20, 2001 - October 17, 2001.

3. Arbitron Wilmington Metro Diary Estimates, Fall 2001 Phase 1
   (September 20, 2001 - October 17, 2001).

4. Estimates for September 27, 2001 to October 24, 2001.

5. Nielsen Media Research Meter-Diary Integrated October 2001
   Estimates for the Philadelphia DMA.

      As with the previous two findings, these comparisons for October
2001 indicate that, for broadcast TV and cable, the PPM is reporting
higher AQH audiences for all dayparts. These increases are due in part
to increased viewing for men and people under age 35, as well as
substantially higher cable viewing overall and the PPM's ability to
track viewing out of home.

                  Average Quarter-Hour (AQH) Ratings
                  Monday-Sunday, Midnight to Midnight
                        Encoded Media Outlets(1)

          Radio                Broadcast              Combined Media
                              TV and Cable
        PPM2    Arbitron     PPM4      Nielsen       PPM     Existing
               Wilmington              Phila. DMA               3,5
                 FA01(3)                Oct 01(5)
P 6-17    --        --        13.1         6.9         --         --
P 12-17  5.0       6.1          --          --         --         --
P 18-34  9.2       8.7        13.7         9.6       22.9       18.3
P 35-54 10.8      10.5        15.4        13.4       26.2       23.9
P 55+    9.7       8.0        21.0        19.0       30.7       27.0

1. 38 radio stations, 8 broadcast TV stations and 15 cable outlets
   were encoded full-time for the reported time periods.

2. Estimates for September 20, 2001 - October 17, 2001.

3. Arbitron Wilmington Metro Diary Estimates, Fall 2001 Phase 1
   (September 20, 2001 - October 17, 2001).

4. Estimates for September 27, 2001 to October 24, 2001.

5. Nielsen Media Research Meter-Diary Integrated October 2001
   Estimates for the Philadelphia DMA.


About the Comparisons

For the month of October 2001, 38 radio stations, eight broadcast television stations and 15 cable outlets were encoding See encode.  their audio full time and are included in these ratings comparisons.

The panel of consumers used for these ratings comparisons is representative of the market being measured, and the panelists have carried the meters with them more than 15 hours a day (median value Noun 1. median value - the value below which 50% of the cases fall
median

statistics - a branch of applied mathematics concerned with the collection and interpretation of quantitative data and the use of probability theory to estimate population
) throughout the month of October.

The radio ratings comparisons are between October 2001 PPM data and the Fall 2001 Phase I radio diary data. These comparisons are for Persons 12+, as the diary radio survey begins at age 12.

TV ratings comparisons are made with data from the Nielsen meter/diary integrated estimates for the total Philadelphia DMA(R) for the October 2001 Nielsen survey. These data are compared with the October 2001 PPM results for total Persons 6+, which is currently the youngest age for PPM measurement.

About Arbitron

Arbitron Inc. (NYSE: ARB) is an international media and marketing research firm serving radio broadcasters, cable companies, advertisers, advertising agencies and outdoor advertising companies in the United States, Mexico and Europe. Arbitron's core businesses are measuring network and local market radio audiences across the United States; surveying the retail, media and product patterns of local market consumers; and providing application software used for analyzing media audience and marketing information data. Arbitron Webcast Services measures the audiences of audio and video content on the Internet Internet

Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the
, commonly known as webcasts. The Company is developing the Portable People Meter, a new technology for radio, TV and cable ratings.

Arbitron's marketing and business units are supported by a world-renowned research and technology organization located in Columbia, Maryland Columbia is a census-designated place and planned community in Howard County, Maryland, United States. It is a suburb of Baltimore, and, to a lesser degree, Washington, DC. It began with the idea that a city could enhance its residents' quality of life. . Arbitron has approximately 750 full-time employees; its executive offices are located in New York City New York City: see New York, city.
New York City

City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S.
.

Through its Scarborough Research joint venture with VNU VNU Volontaires des Nations Unies (French)
VNU Verenigde Nederlandse Uitgeversbedrijven (Dutch)
VNU Virtual Network User
 Media Measurement & Information, Arbitron also provides media and marketing research services to the broadcast television, magazine, newspaper and online industries.

DMA is a registered trademark of Nielsen Media Research.

This press release is available on the Arbitron Web site at www.arbitron.com and the KCSA KCSA Krannert Center Student Association
KCSA Kentucky Crushed Stone Association (Frankfort, KY)
KCSA Kyiv City State Administration
KCSA Kalamazoo Christian School Association
KCSA Kentucky-Canadian Studies Association
 Web site at www.kcsa.com. You may register to receive Arbitron's future press releases or to download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer.  a complete Digital Investor Kit(TM) including press releases, regulatory filings and corporate materials by clicking on the "Digital Investor Kit" icon at www.kcsa.com

This press release contains forward-looking statements forward-looking statement

A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections.
 within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  of 1995. The statements regarding Arbitron in this release that are not historical in nature, particularly those that utilize terminology such as "may," "will," "should," "likely," "expects," "anticipates," "estimates," "believes" or "plans," or comparable terminology, are forward-looking statements based on current expectations about future events, which Arbitron has derived from the information currently available to it. These forward-looking statements involve known and unknown risks and uncertainties that may cause our results to be materially different from results implied in such forward-looking statements. These risks and uncertainties include whether we will be able to:
- realize the benefits we expect to achieve from our spin-off from Ceridian
Corporation;

- renew contracts with large customers as they expire;

- successfully execute our business strategies, including timely implementation
of our Portable People Meter and our Webcast Ratings services, as well as
expansion of international operations;

- benefit from further consolidation in the radio industry; and

- keep up with rapidly changing technological needs of our customer base,
including creating new products and services that meet these needs.


Additional important factors known to Arbitron that could cause forward-looking statements to turn out to be incorrect are identified and discussed from time to time in Arbitron's filings with the Securities and Exchange Commission, including in particular the risk factors discussed under the caption "ITEM 1. BUSINESS - Business Risks" in our Annual Report on Form 10-K Form 10-K

A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.


Form 10-K

See 10-K.
, which discussion is incorporated herein by reference.

The forward-looking statements contained in this release speak only as of the date hereof here·of  
adv.
Of this.


hereof
Adverb

Formal or law of or concerning this

Adv. 1. hereof - of or concerning this; "the twigs hereof are physic"
, and Arbitron undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.

Editor's note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat.

Trained by D.
: A complete list of radio stations, broadcast television stations and cable networks and outlets participating in the U.S. market trial is available on request.
COPYRIGHT 2001 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:Dec 13, 2001
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