Dr. Mike says a portable people meter is... "a pager sized device that consumers wear throughout the day. It works by detecting identification codes that can be embedded in the audio portion of any transmission"

Arbitron says..."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 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 the devices and send the collected codes to Arbitron for tabulation. The meters are equipped with a motion sensor 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."
 
 
 
 
 

Arbitron invented this device to in a sense, keep track of media ratings.  Technically speaking, it is used by consumers. but the media companies use the data gathered from it.
 
 
 
 

Since this is a brand new technology, only one company is manufacturing it.  This company is called Arbitron.  According to their web site, "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, 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. Arbitron has approximately 750 full-time employees; its executive offices are located in New York City."
 
 
 
 
 

COMPONENTS
The Portable People Meter has four main components that make it work.
1.  There is a the actual device itself which resembles a pager.
 

2.  There is a charger or "hub"  that comes with the device that consumers can use to keep the meter fully powered, which is similar to the charger that came with earlier models of cell phones.

 

3.  There is what is called the "household hub" also according to the website, which transmits the codes gathered by the devices through the telephone during the evening hours.

 

4.  Finally, there is an "encoder" which is similar to an identification code, which is used to differentiate signals from each meter. 
 
 
 
 

PRICING

Since Arbitron will need people to use this device for the benefit of the company, users will get the product for free and will not be able to keep it once the company is done gathering data.  It will be a simple device.  One which great intellectuals or simple individuals can use.  However, speculations says that Arbitron might have to offer incentives since this is a more technical system than the Nielson ratings system.
 
 
 
 

This is a new idea as far as using this kind of technology for market research, but it stands on the shoulders of previous technology.

The Pager

 

The Cell Phone Charger

 
 
 
 

MARKET PENETRATION

This product which provides a service should penetrate the entire market because it is designed to gather ratings data.
 
 
 
 

HEADLINES

Arbitron Updates Portable People Meter Development Schedule

Company sets timetable for balance of U. S. market trial and issues update to industry on status of proposed joint venture with Nielsen Media Research. 06.04.02
 

NEW YORK, June 4, 2002 -- Arbitron Inc. (NYSE: ARB) today released an updated development schedule for the Portable People Meter (PPM), and an update on the discussions with Nielsen Media Research regarding the proposed joint venture that would deploy the new audience measurement system that Arbitron is developing for use in local markets in the United States.

"In the first five months of 2002, we've made significant progress in the development and evaluation of the Portable People Meter," said Steve Morris, president and chief executive officer, Arbitron Inc. "We've released the first round of station and cable network ratings, and made substantial progress researching many of the factors that contribute to the ratings produced by the PPM.

"Our path to commercial deployment of the PPM is much clearer now, thanks to the results of our research program, the responses of the industry to the initial round of station ratings and the due diligence discussions we have held thus far with Nielsen Media Research," continued Mr. Morris. "As a result, we are issuing this update to the industry regarding our plans for the Portable People Meter."

Nielsen Media Research is providing financial support as well as its television survey research expertise in the U.S. market 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.
 
 
 

Arbitron Releases Initial Round of Ratings Results From the Second Phase of the Portable People Meter Trial

Arbitron expands ongoing assessment of Portable People Meter audience ratings. 04.15.02

NEW YORK, April 15, 2002 -Arbitron Inc. (NYSE:ARB) today released an initial round of ratings results from the second phase of the Portable People Meter (PPM) U.S. market trial in Philadelphia.

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 stations and networks that encoded full time. The February 2002 PPM results show increased average quarter-hour audiences for broadcast and cable television, and somewhat higher average quarter-hour audiences for radio. (See summary findings below.)

The latest Portable People Meter findings from early weeks of the expanded panel of 1,500 consumers in the Philadelphia radio and television market confirm the pattern of observations that were reported in the previous three ratings comparisons from last year's more limited phase of the trial in Wilmington, Delaware. These findings continue to suggest that Arbitron's new ratings technology is tracking media exposure that is not included in today's generation of TV and radio ratings methods.

"These four comparisons, from two separate panels of consumers, indicate that the PPM can track consistently people's exposure to radio, broadcast and cable television, in and out of the home," said Steve Morris, president and chief executive officer, Arbitron Inc. "The Portable People Meter is a system that is showing its potential. However, it's clear that there are aspects of the PPM data that need to be explored in more detail. The expanded evaluation program that we are announcing today will be essential to any ultimate acceptance of the new technology in the marketplace."
 
 
 
 

ADVANTAGES AND BENEFITS

The advantages to this are many.  Ratings can be gathered with ease and more trust than by other methods.  Users are less likely to change their behavior since this is a small device that they have to wear.  It will be easy for them to go about their lives as normal, so ratings can be counted as more accurate.
 
 
 
 

DOWNSIDES

Despite it's convenient nature, people are still apt to change what they watch and listen to when they know they are being observed.  Also, the technology this device uses could very easily be used for invasion of privacy in the future or even in the present.
 
 
 
 

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PREDICTIONS

I predict that this technology will soon replace any type of manual ratings gethering information.  There will be bugs that will need to be worked out just like any other new invention.  It may even become smaller and easier to use than it already is.  There may be an elimination of the household hub some day, and the signals will transmit straight from the meter.  This technology will undoubtedly be used and tapped into for the wrong reason though.  If advertisers can find out who personally is watching what, than that consumer will personally be targeted by whichever advertisers see benefit from contacting them.  Privacy is a growing issue in today's technological world, and this device will surely make the concern more urgent.  However, security measures will be invented for this device also.  Many new ideas will come from this and many new inventions will stem from this one idea.
 
 

SOURCES

www.arbitron.com
www.tcom.bsu.edu/tcom101
www.beepers.com

6/6/02
Audrey Marie Brown