Nielsen Audio
| Company type | Subsidiary |
|---|---|
| Industry | Consumer research |
| Predecessor | American Research Bureau |
| Founded | 1949 |
| Founder | Jim Seiler |
| Headquarters | Columbia, Maryland , United States |
Area served | United States |
Key people | Sean Creamer (CEO) |
| Products | Radio audience measurement, Portable People Meter |
Number of employees | 1,625 (2011) |
| Parent | Nielsen Holdings |
Nielsen Audio—previously known as Arbitron—is a consumer research firm based in the United States that specializes in measuring radio audiences. Established in 1949 under the name American Research Bureau by Jim Seiler, the company expanded its reach nationwide after merging with Los Angeles-based Coffin, Cooper, and Clay during the early 1950s. Although originally concentrating on television audience measurement, it adopted the Arbitron name in the mid-1960s and introduced the Arbitron System—a centralized statistical computer that delivered real-time viewing data to monitored households via leased communication lines.
Once a division of Control Data Corporation and later Ceridian Corporation, Arbitron became an independent organization in 2001 following a corporate separation. In December 2012, Nielsen Holdings declared its intent to acquire Arbitron, its chief rival, for US$1.26 billion—a transaction completed on September 30, 2013. After this acquisition, the company was renamed Nielsen Audio. To mitigate concerns about market dominance, Nielsen committed to licensing its ratings data and technology to third-party entities for a period of eight years.
With its headquarters located in Columbia, Maryland, Nielsen Audio provides essential ratings data within the U.S. broadcasting landscape, serving broadcasters and advertisers alike. For fiscal year 2010, the company reported revenues of US$422.31 million, operating income of US$85.11 million, and net income of US$53.29 million, supported by a workforce numbering 1,625 employees as of December 2011. The current CEO, Sean Creamer, directs strategic efforts to sustain Nielsen Audio’s leadership position in media market analytics.
Survey
Arbitron’s syndicated radio audience measurement service gathers information from a randomized sample across 294 metropolitan areas throughout the United States. Data collection occurs two to four times annually using paper diaries, complemented by continuous year-round measurement via the Portable People Meter (PPM). Within the industry, these audience reports are commonly referred to as Arbitron books, traditionally released as seasonal publications ("Spring book", "Summer book", etc.). Additionally, monthly interim reports known as "Arbitrends" provide rolling three-month average ratings.
Participants document their radio listening patterns over seven-day diary periods and receive modest incentives for their involvement. The processing time from survey completion to data availability is approximately three weeks. Arbitron distributes this information to a broad range of clients including broadcasters, networks, cable operators, advertisers, advertising agencies, out-of-home media companies, and online radio services. Core metrics offered include cume (the count of unique listeners), average quarter hour (AQH share), time spent listening (TSL), and detailed demographic segmentation by age group, gender, and ethnicity. The "cume" metric accounts for each listener once during the measurement period, whereas AQH reflects the average audience size within fifteen-minute intervals.
Portable People Meter
In response to demands from broadcasters and advertisers for more precise audience data, Arbitron introduced the Portable People Meter (PPM) technology in 2007. This wearable device detects inaudible identification codes embedded in broadcast signals such as those from radio stations. Individuals recruited for participation agree to wear the PPM device for periods up to two years and receive compensation for their involvement. The monthly aggregated results derived from PPM surveys function as the standard currency for transactions involving radio advertising purchases and sales.
By December 2009, PPM deployment had extended to 33 prominent media markets including New York City, Chicago, Los Angeles, Philadelphia, Houston, and San Francisco. This coverage expanded further to encompass 48 markets by 2010. The implementation of PPM technology represents a strategic investment aimed at enhancing Arbitron’s competitive position within the audience measurement industry through improved data accuracy and timeliness.
See also
- ComScore, a digital analytics firm collaborating with Arbitron for integrated media audience measurement
- List of most-listened-to radio programs
- List of United States radio markets
- Nielsen ratings, which measures television viewership
- Radio & Records, a publication that reported Arbitron data for commercial broadcasters
- Radio Research Consortium, responsible for distributing Arbitron data concerning non-commercial broadcasters
- The Media Audit
- Time spent listening (TSL), an essential metric for audience evaluation
External links
- Arbitron SEC Filings
- Ratings - Persons 12+ from Arbitron covering commercial broadcasters
- Ratings - Persons 12+ from FMQB for commercial broadcasters
- Ratings - Persons 12+ from Radio and Records covering commercial broadcasters
- U.S. Radio Markets ranked by size
- Audio interview of Ernest H. Clay, ARB’s Research and Production Director on WGN's Your Right To Say It
- Articles with short description
- American companies established in 1949
- Control Data Corporation
- 1949 establishments in Washington, D.C.
- 1950s mergers and acquisitions
- 2012 mergers and acquisitions
- Companies based in Columbia, Maryland
- Market research companies of the United States
- Radio audience audit
- Companies of the United States by year of establishment
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