Arbitron and Nielsen Report Progress in Portable People Meter -PPM- Response Rate Testing.

Entertainment Editors/Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 21, 2003

Arbitron Inc. (NYSE: ARB) and Nielsen Media Research today announced that preliminary tests of methods to improve consumer response rates in the Portable People Meter system were positive. In a key research test of two sampling and recruitment techniques, response rates among panelists increased significantly over those for prior sampling and recruitment methodologies used for the PPM. Additional tests are underway in order to assure that these initial success levels can be maintained.

"For the better part of a year, Arbitron, Nielsen and the industry have pointed to response rates as one of the key issues that had to be resolved before the Portable People Meter could be deployed as a means of measuring audiences for radio as well as broadcast and cable television in local markets," said Steve Morris, president and chief executive officer, Arbitron. "We said that Arbitron would work with Nielsen to devise techniques that could increase the percentage of consumers who would accept our invitation to take part in PPM surveys and then carry the meters on a continuing basis.

"I am pleased to report that Arbitron and Nielsen have developed two separate methods that have increased the rate at which we can recruit consumers for PPM surveys. Initial results are in line with what Nielsen would expect when recruiting a new set-top meter panel, which is what we both wanted to achieve. While the response rate test needs to be completed to confirm that acceptable rates can be sustained over time and that turnover rates are also acceptable, Arbitron is confident that we have found a solution on this key issue."

Said Susan Whiting, president and chief executive officer, Nielsen Media Research: "It is quite encouraging that Nielsen and Arbitron working together were able to improve the response rate methodology that can be used with the Portable People Meter. We are continuing the tests to see if the turnover rates are acceptable from both a quality and cost perspective. Having a better understanding of long-term turnover is important because, over time, households leave the panel for varied reasons such as moving out of the sample home. Our joint efforts also need to continue on other important tests that help Nielsen and television clients understand the changed definition of viewing that the audio-based methodology entails."

The two companies are exploring the feasibility of using the PPM as a data collection tool for television audience measurement. Arbitron and Nielsen first announced an agreement in June 2000 to jointly test the PPM in Philadelphia.

About the Portable People Meter Response Rate Research Tests

For the response rate research test currently underway in Philadelphia, Nielsen and Arbitron have recruited two panels using two different methodologies. The one methodology focuses on the use of Nielsen staff (known as membership representatives) to recruit, install and maintain the panel. This method mirrors Nielsen's current approach for recruiting consumers for its local television meter services.

The second approach is a novel combination of telephone-based recruitment and membership representatives. Key features of the hybrid test include:

-- Use of a brightly colored box for all respondent mailings;

-- Enhanced recruitment materials;

-- Increased incentives and use of promised incentives;

-- Reduced number of data variables collected at recruitment;

-- Streamlined equipment box; and

-- Co-branded materials using both the Nielsen and Arbitron

names.

The two companies will continue the response rate test into 2004 to evaluate the effect of turnover and confirm the initially positive response rate result.

About the Expanded Research Program

The expanded PPM research program that was announced in March 2003 by Arbitron and Nielsen included three tests, one of which is the response rate test. One of the other tests aims at understanding the audio sensitivity of a PPM under different conditions of program type and household acoustic environments. This audio sensitivity test will provide television clients a better understanding of how the PPM might change the definition of viewing. This test will continue for another six to eight months. A second test - aimed at comparing set-meters and PPMs in the same homes - has just begun. Final results of all three tests are expected to be ready by the summer of 2004.

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 Internet Broadcast Services measures the audiences of audio and video content on the Internet, commonly known as webcasts. The Company is developing the Portable People Meter, a new technology for radio, television and cable ratings.

Arbitron's marketing and business units are supported by a world-renowned research and technology organization located in Columbia, Maryland. Arbitron has approximately 825 full-time employees; its executive offices are located in New York City.

Through its Scarborough Research joint venture with VNU, Inc., Arbitron also provides media and marketing research services to the broadcast television, cable, magazine, newspaper, outdoor and online industries.

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The statements regarding Arbitron in this document 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 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:

-- renew contracts with large customers as they expire;

-- successfully execute our business strategies, including timely

implementation of our Portable People Meter services, as well

as expansion of international operations;

-- effectively manage the impact of further consolidation in the

radio industry;

-- keep up with rapidly changing technological needs of our

customer base, including creating new products and services

that meet these needs; and

-- successfully manage the impact on our business of any economic

downturn generally and in the advertising market in

particular, and the impact on costs of data collection due to

privacy concerns.

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.

The forward-looking statements contained in this document speak only as of the date of this release, and Arbitron undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise.