Paul Hostings Put Hastings. Janofsky & Walker LLP875151h Street, NW.Washington, DC 20005telephone 202-551-1700' facsimile 202·551·1705' ~.paulhastlngs.c m

AtlantaBeijingBrusselsChicagoFranldunHong KongLonclonLos AngelesMilanNew YorkOrange CountyPalo AltoParissan DiegoSan FranciscoShanghaiTokyoWashington. DC

(202) 551~1724

johngciffithjohnson@paulhastings.com

March 9, 2009

FILED ELECTRONICALLY VIA ECFS

Marlene H. DortchSecretaryFederal Communications CommissionThe Portals II445 Twelfth Street, S.W.Washington, D.C. 205.54

72010.00010

Rc: Notice of Oral Ex Parle Presentation in MB Docket No. 08-187, In theMatter of the PPM Coalition's Emergency Petition Requesting an Inquiryunder Section 403 of tbe CouununicatioDS Act of 1934. as amended

Dear Madame Secretar'!:

On March 5, 2009, Michael P. Skarzynski, the new President and Chief ExecutiveOfficer of Arbitron Inc. ("Arbitron"), Timothy T. Smith, Albitron's Executive VicePresident and Chief Legal Officer for Legal and Business Affairs, Michelle Levister,Senior Attorney at Arbi.tron. and the undersigned, Arbitron's counsel, met withActing Chairman Michael J. Copps, Rick C. Chessen, Senior Legal Advisor toChairman Copps, and Jamila Bess Johnson, in connection with the above-referencedproceeding. At the mel:ting, Mr. Skarzynski provided Chairman Copps, Mr.Chessen. and Ms. Johnson with an update on recent initiatives undertaken byArbitron as part of its continuous improvement program for its Radio First™Portable People Meter TM, or PPMTM, radio broadcasting station audiencemeasurement service, including enhancements to PPM sample recruitment andpanelist compliance prc.cesses that follow agreements that Arbitron entered intoearlier this year with tlw Attorneys General of the States of New York, New Jersey,and Maryland.

Arbitron's reprcsentati~·csalso apprised Chairman Copps, Mr. Chessen, and Ms.Johnson of l\1.r. Skarzynski's letter to United States Senator Robert Menende7- ofNew Jersey, dated February 27, 2009, and a rehtted Arbitron press release datedMarch 2, 2009, which provide additional infonnation concerning the recent PPMenhancements and other steps that Arbitron has recently initiated in order to assistits radio-station and advertising clients in making better and more informed use ofthe data produced by ttc PPM service.

In response to a questic.n from Chairman Copps, Mr. Skarzynski pledged thatArbitron will continue to (1) seek accreditation from the Media Rating Council, Inc.

Paul Hastings

Marlene H. DortchMarch 9, 2009Page 2

of the Radio Pust PPM service in all markets where that service has been and will becommercialized, and (2) work with stakeholders in the radio broadcasting andadvertising communitie!;, and others, to improve the Radio Erst PPM service and toassist interested parrics in taking advantage of the increased information that isavailable through PPM and that is not available under the diary-based system whichPPM is in the process of replacing. Arbitron also pledged to keep Chairman Coppsinformed of deve1opme:.1ts of interest in connection with its continuousimprovement program for PPM.

Arbitron's counsel noted that grant of the PPM Coalition's September 2, 2008"Emergency Petition for Section 403 Inquiry" would likely result in retarding thecontinuous improvement program by diverting the time, energy, attention, andresources of key Arbitwn personnel involved in that program to litigation-relatedtasks associated with a formal Commission investigation under Section 403 of theCommunications Act of 1934, as amended, 47 U.S.c. § 403 - including documentreview, production of testimony, assertion of protection from disclosure ofproprietary data and confidential trade secrets, assertion of evidentiary privileges,and associated backward-looking trial-type preparation - and would discouragefurther innovation in developing enhancements to Radio Ilirst, since Arbmon'sadversaries would undo1lbtedly try to portray each such innovation as a tacitadmission that the scrvi':e prior to such innovation was somehow inadequate.

Copies of Mr. Skarzynski's letter to Senator Menendez, and of the above-referencedpress release, which were distributed at the meeting to Chairman Copps, Mr.Chessen, and Ms. Johnson, arc appended to this letter.

In accordance with Section 1.1206 of the Commission's Rules, 47 C.F.R. § 1.1206,one copy of this letter is being filed electronically with the Commission.

In the event that there should be any questions wim respect to this matter, kindlydirect them TO Arbitron's undersigned counseL

v c,ry truly yours, ~ •

dl;:;fi~JO~~of Paul, I lastings, Janof:;ky & Walker LJ.P

Enclosures

cc: Chairman Michael S. Copps, with enclosures (via electronic mail)Rick C. Chessen, with enclosures (via electronic mail)JamiJa Bess Johmon, with enclosures (via electronic mail)

- ARBITRON

February 27, 2009

The Honorable Robert MenendezUnited StaleS Senate317 Hart Senate Office BuildingWashington, DC 20510-4305

Dear Senator Menendez:

Michael P. SkarzynskiPresident and Chief Executive Officer

michacl.skarzynski@arbitron.comT (410) 312-8255 F(410) 312-8611

Thank you again for meeting with me at your office on February 12.2009. to discuss theprogress Arbitron has made in our introduction of eleclronic audience measurement into themajor United Stales radio narkcIS.

I want 10 reiterate that Arbitron is commiucd to ensuring that all radio listeners arc fuUyand fairly represented by (lur radio ralings services. and thai we have been focused on thatgoal every day-for more than 40 years.

In my short lime since joining Arbitron on January 12.2009. as the new Chief ExecutiveOOicer. I have been in regular and frequent dialogue with our Portable People Meler™(PPMTM) customers. including members oftlte ational Association of Black OwnedBroadcaslers and the Spanish Radio Associalion. I am committed to continue our focus onand to resolve satisl:lctorily the concerns of all of our PPM market customers in tcnns ofthe sample size. sample proportionality and sample quality of our PPM panels. I want toassure you that Arbitron is actively engaged in the continuous improvement of our PPMand Diary market services Thanks to specitic customer input. Arbitron is already makinggood progress on improvements in many operational areas. As an integrul pMt of thecompany's continuous improvement progrnms. Arbitron is on track to meet or exceed 100percent of the settlement agreement criteria with the Attorney (icncrul of New Jersey andthe Attorney General of tlte Statc of New York.

Plcase allow me to sumrm.rize the commitments and progress Ihat Arbilron is making inour continuous improvement program for the PPM markets in more detail.

As n lirsl step. Arbitron will provide all PPM markets with Ihe benefit of many of the keymethodological enhancements that we have committed to in our agreements with theat10rneys general of New Jersey, New York and Maryland. While there will be somcvariation in metdcs and milestones based on paniculars of the local market cnvironmcnts.all of our PPM customers would be able to count on receiving cnhaneements 10 our PPMmethodology in four key areas:

••••

Cell-phone-only samplingAddress-based samplingIn·Tab complianc~ratesResponse melrics (Sample Performance Indicator or SPI)

In addition. customers in all PPM markets can expect to Sl'e increased transparency formore of the sample melrics of our PPM survey research. including the distribution of oursample by zip code and by cell phone status. We will also continue to share with aU

Aminun Inc. 9705 Patu:<cnl \':0005 Dri\C Columbia. MD 21046-1572 I "fli

The HOllorahle Rohert Menendczrchnmy 27,2009

customers any current and future findings of the impact of nonresponsc on the PPMservice.

I\rbitron intends to maintain its commitment to Media Rating Conncil)!) (MRC)accrcditation in all PPM and Diary markets. Arbitron recognizes that thc U.S. Congressinspircd the lonnation of the MRC in order to secure for the media industry and relatedusers audience measurement cha! is valid, reliable and effective. The Media RatingCouncil"s accreditation of Arbitron's PPM radio ratings in Houston-Galveston andRiverside-San Bernardino stands as a testament to Arbitron's commitment to transparency.accuracy and thc delivcry of high-quality audience measmemcnL MRC accreditationreaftimls Arbitron's dedic'ltion to maintaining an indnstry-wide gold standard for audiencemeasurement.

Beyond the progress that I have just olltlined. we arc also addressing specitic matters ofinterest to the Spanish Radio Association, including country of origin. which [will rcvicwin this letter.

Finally. I would likc to rcvicw some news highlights from PPM markets across the country.Broadcasters have recentl~1 converted two general-market formatted radio stations, one inLos Angeles and one in D,.Illas, to Spanish-languagc formats, and the early PPM rutingsestimates indicate a promising start for the new Spanish station in Los Angeles.

Let me now address the c(,mmitments we arc making to all of our customers, starting withthe key methodological enhalleements that we arc extending to all PPM markets.

I: Extending our commil:ment to cell-phone-only sampling to all PPM marketsArbitron will increase the sample target for eell-phone-only households in all PPM marketsto an average of 15 percent by year-end 2010. In an interim step. the current target 01'7.5perccnt will be mised to I:U percent in PPM markets by year-end 2009. (Monthlymilestones \vithin each year will vary by market. Our lalest cell phone research is indicatingthat markets such as Nass:LU-Sllffolk and Middlesex-Somcrsct-Union have a eell-phone­only penctration that is significantly less than 15 percent.)

Arbitron has recognized fIom the beginning ofche PPM service that coverage ofeel1­phone-only households is very important. Arbitron has been at the forcfront of measuringcell-phone-only persons, including conducting the first survey ever in the United Statcs thatcalled cell phones in 2002. Our commitment 10 understanding how to lIlelisure ccll-phone­only persons and hOllseho ds has been cited by leaders in the survey research industry.

This commitment!o eell-phone-only sampling is important because Federal statistics showthat Hispanics and Blacks arc more likely 10 live in cell-phonc-only households.

We believe that increasin~: the number of cell-phone-only households in our PPM sampleswill be an important clement in our ongoing programs to enhance the participation of 18- to34-year-olds by race and (Ihnicity. As the number of hOllSeh()lds that cnn be reached onlyby cell phone continues to grow, Arbitron plans to update its methodologies to bellerinclude this important segment oflhe population.

2: Cell-phone-only sampling plans (or Diary marketsArbitron is also committing to expanding cell-phone-only sampling to 151 Diary markets inSpring 2009 and to all Diary markets ill the continental U.S .. Alaska and Hawaii by Fait

Arbitron Inc. 9705 Patuxent Woods Drive Columbia. MD 21046-1572

The Honorable Rober! MellendezFebruary 27.2009

2009. Arbitron also plans 10 use an address-based sample fmme as the foundation of itseell-phone-only sample in Diary markets. while maintaining the effective random-digit-dial(ROD) sample frame for landline households.

3: Extending our commitment to address-based sampling to all PPM markets

In keeping with our national commitment to increase eell-phone-only sample. Arbitron iscommitting to the usc ofaddress-based sampling technique for at least 10 percent or itssampling efforts by late 2(09 and for at least 15 percent of its recruitment efforts by the endof Ol..'cembcr 201 0 in all PPM markets. (Again. mOnlhly milestones within each year willvary by markeL)

Bccause federal law prohibits aUlo-dialing wireless lines without consent from the calledparty. Arbilron. as a survel researcher, cannot efficicnlly usc a random-digit-dial sampleframe to expand ccll-phon::-only sampling in our PPM markels. That is why, effective withthe Mareh 2009 survey period. random-digil-dial. lelephone-based sampling will bereplaced with address-based sampling for cell-phone-only households.

This new method is more .:Oicicnl than the manual dialing procedures we had been usingand should allow us to substanlially increase Ihe number of cell-phone-only personsincluded in our panels.

We arc also retaining Ihe random-digit-dialing sampling method for landline homesbecause that approach cnaJles tclephonc contact with a higher percentage of landlinehomes not listed in telephune directories. These unlisted land line households. which arcmore likely Ihan listed ones to cOlllain Hispanics. Blacks and young adults. are still bestreached through a random·digit-dial frame. Their inclusion in Ihe random-digit-dial frame.along with the additional recruitment contacts that a telephone-based method makespossible. can improve the overall representation of these groups in our PPM samples.

4: Extending our agreement for compliance metrics to all PPM markets

In our agreeillents with N(w Jersey. New York and Maryland. we eornmined to take nilreasonable measures 10 ac lieve average In-Tab rates of at least 75 percent for all Persollsaged 6 and oldl'r by specific dates and to work to minimize differential compliance (withdiffering l1lctrics across local markels) for demographic subcategories comprising 10percent or more of the population in a PPM market.

Arbitron is applying Ihe agreed-upon 75 percent metrie to all PPM markets. In addition, weare also implementing in all PPM markets many oflhe techniques and melhods that we areusing to minimize diOcrcrtial compliance r:ltcs in order to fulfill the tenns of Ihe NewJersey. New York and Maryland agreements. (Specific programs and techniques arc beingapplied based on an individual markel's in-lab pcrfonnance.)

5: Our commitment to enhancing Sample Performance Indicator (SPI)

In our agreements with New Jersey, New York and Maryland. Arbitron commilled to sct atargel of20 pereent for the Sample Perfonnance Indicalor (Sri) by 2010. While we haveset a target of 20 percent. Ne also agreed 10 take all reasonable measures to achieve certaininterim minimums. such as IS pereenl SPllevc1 in mid-2009, 16 percent SPI in late 2009and 17 percent sri in 2010. (The precise milestones vary by market.)

SPI is a longitudinal measure thai is used as a proxy for response metrics in electronicmedia panels for radio and television. No melric is more variable by local markel than SPI:

Arburon Inc. 9705 Patuxent Woods Dri,'c Columbia. MD 21046-1572 3 urb

The Honomblc Robert Mcnend~7February ~-. 2009

smaller markets lend to have highcr SPI mctrics than larger ones. Thc ncwest PPM markets.which werc first recruited in 2008. have also received the benefit of our response rate andcompliance programs slaning with the very first recruitment contact. In thcse markets. SPImetries are already abo\'e ,)ur commitments to New Jersey, New York and Maryland.

Based on the progress we arc seeing in our response rate programs. we have infonned theMRC that we hope to achbve a 21 pereent SPI average across all PPM markets by the endof2010.

Arbitron commitments to greater transparency

Our commitments to New Jersey, New York and Maryland do not stop with sampling.recruitment and compli:llKe improvements. They include greater transparcncy in tcrms ofinformation regarding PPM sample composition and other metrics of PPM serviccs. Weintend to provide additional information in all PPM markets that many of our c1icnts havcindicated they would find useful and that would help clients understand the strengths andlimitations of PPM sampks.

6: Underslanding sampl(: distribution by zip code reports

Going beyond the New Jcrsey. New York and Maryland agreements, we will provide in allPP\1 markets installation lind in-tabulation data by individual zip code. along with marketpopulation d:lln for Blacks. Hispanics and others (non-Black or non-Hispanic) for eachindividual zip code. We hllve also released a new and enhanced Web application. PDAdvantage™ Web. whieh allows a station llccess to unweighted audience infonnation forzip codes where 20 percent or more of the panelists repon exposure to the station (subjectto appropriate minimums O\'cr time).

7: Understanding how our sample is distributed by cell-phone-only status

Sinee ccll-phone-only saTT,pling is of viral interest to our customers. Arbitron will continucits practice of publishing the perccntages of installed and In-Tab cell-phone-only sample inthe front of all monthly Arbitron electronic PPM market reports.

8: Understanding the pOllcntial for nonrcsponse biasWhile Arbitron hus committed to complete a nonrcsponse bias study in the New Yorkmarket by July 15,2009. we intend for all PPM markets to benefit from the findings of thatstudy. Arbitroll has already conducted nonrcsponse studies in Houston-Galveston andPhiladelphia. and has shared the results of the Philadelphia study at a research industryconference. In the casc of the New York study, should the findings indicate any measurablestatistical bias, Arbitron \'- ill infonn all of our c1iems of the identified sources of thatstlltisliclll billS in our PPM methodology and will take reasonllble mellsures to address thosesources.

9: QUI' ongoing commitment to MRC accreditation

Another imponant ongoing commitment is to obtain and maintain accreditation by theMRC in all of our PPM and Diary markets. While there arc milestones in ollr agreementswith New Jersey. New YNk and Mllryland. that commillnent to MRC accreditation eXh.'ndsto all PPM ,!Od Dillry mar.<ets.

[n my first month with th" company. I have devoted a substantial amount of time inmeetings with the MRC e,ecutive stafr and Arbitron's customers who serve on the MRC

Arbitron Inc. 9705 Patuxent Woods Drive Columbia. MD 21046-1572

The HOl1orabk Robert Mellendt'7February :n. 2009

Radio Commitlee. as well as in internal company mcctings related to MRC accrcditationactivities.

One positive outcome of our continued commitment is the January 2009 decision by theMRC 10 accredit the Arbit'on PPM radio quaner-hour ratings data in Riverside-SanBernardino. California. Ri·...erside-San Bernardino is a heavily Hispanic markel, withHispanics accoullling for 46.7 percent oflhe population and Spanish-dominant Hispanicsaccounting for 21.5 percer! of the markel.

The accreditation in Rivef:iidc·San Bernardino demonstrates thai our 'Radio First'methodology. which uses;1 telephone-based sampling and rccnlitment methodology thatincludes both landline and cc1l·phone-only households, can deli"cr audience e<;timates Ihalcan be accredited by the RC. We arc using the 'Radio-Firsl' sampling methodology inPPM markets outside of Houston·Galveston.

Our goal now is to demon'i1rate that the sample qualily initinti\'cs wc have committed 10 forall of our PPM markels will have a continuing positi\'e impact. just as the)' have had inRiverside-San Bernardino.

Beyond the progress 10 dare that I have just outlined, we are also addressing additionalmatters of imponance 10 the Sp:mish Radio Association. including country of origin.

10: Country of originThe optioll to see the CUITC"nt composition ofthl' Hispanic sample by country of origin hasheen a topic of discussion with Hispanic broadcasters. We have already conducled zip codeanalyses by density of country of origin population in New York City specifically toaddress this concern. The ong-tenn objective is to have this infonnation available on anongoing basis to provide a degrce of assurance thOl the country of origin rcpresel1lalion isreasonable and rdleclive of the proper mix ofHispanies in a given market.

Wc have worked in a collaborativc cHart with the leading rcsearchers of thc Spanish RadioAssocialion to dcfinc a 111llllislep process to achievc this goal.

Arbitron has conducted a lest of thrcc markets selecled by lhe Spanish Radio Association(Homaon-Galveston. Los Angeles and New York) to delermine if asking the country oforigin question during onc of our rCglllar status calls to PPM households WOllld have anadverse impact on lhe PPM sample. Enrly results from the test arc indicating that wc will beable to collect and track country of origin without affccting the qualily of the sample.

While full test results arc pending, we don't anticipate any significant roadblock 10 theimplementation ofcountr), of origin in PPM markets with a signilicant Hispanicpopulation.

News From PPM ma.-kets

At the same lime lhat we ~lrc making improvements based on the input ofour customers,our radio clients arc also h:arning how to take advantage of the new PPM measurementsystem. We have seen changes in the ralings of many stations as programmers have madeadjusllllents in the pn.·senlltion ofthcir programming. We have seen Urban radio comebaek in Houston-Galveston 10 consistently take Ihe (OP spot. We havc seen Spanish­language radio rise to number one in Dallas, which was nOI the case in the Diary servicc.

Arbiu'OO Inc. 9705 PaTUxcnt Woods Drhc. Columbia. MD 2104&-1572

The Honor:lbk Robert M~'nendci'

February n. 2009

During the week of February 16,2009, CBS Radio in Dallas replaced Rhythmic AdultCOlltemporary "Movin" KMVK-FM with a Spanish-language Hoi Adult Contemporuryformal. Dallas now has a dozen PPM-rated Spanish-language radio stations. serving amarket that is 15.7 percent Spanish dominant.

In Los Angeles in mid-January 2009. Entravision (to great public outcry) dropped theAnglo-focused Alternative- format on KDLD-FM and switched the station to MexicanRegional. In a matter of a few weeks. ratings for hEI Gnto 103.1 ,. increased by as mueh asthree times.

On January 16. 2009, the radio trade publication Radio ({lid Record\' published an articlewriuen by Latin editor Jackie Madrigal reviewing the steps that Spanish-languagebroadcasters arc taking to get ready for the introdlletion of electronic measurement in futurePPM markets.

Bobby Ramos, program director for Sun City Latin rhythm station KVlB-FM in Phoenix, isquoted: "You cun actually see what drives a listener, whether it's a song. DJ chalter or acommercial, .. learning how to use this system will begin to answer key questions, like whatto do and what not to do and the rest is left to good, passionate programming:'

George Mier. program dir,~ctor tor CBS Radio's Spanish Tropical WYUU-FM in Tampanoted: ""From a programming point of view. illPPM] is a far more accurate reading thanthe Diary."

On Febmary 27, 2009. a Chicago Sun-Times article noted that "Another big winner sincethe advent of the portable people meter is WOJO·FM (105.1). the Hispanic station Ihatjumped from lourth place in the last book to No.2 in the January report among 25-\0-54­year-olds. The station's huge success underscores the importance of the city's Hispanics­and their love lOr radio formalted to appeal to them. And never count Ollt the urban ndullcontemporary format in Chicago. where it is obviously a draw ... ••

We believe these experiences and our commitment to eontinuOlls improvement point to theprogress being made with PPM nationally.

I am very pleased to provide this progress report to you. nnd I wish to reitemtc mycom mitmellt to nddressinr specific priorities of our customers regarding sample size,proportionality and related quality metrics. I welcome the opportunity to work with you andyour swff. and look forwnrd to keeping you fi.1l1y apprised of our progress.

Sincerely.

711,<4J- p 8:a7rEkMichael SkarzynskiPresident and Chief Execlltive OfficerArbitron Inc.

Arbilron Inc. 9705 Patuxent Woods Drive Columbia. MD 2t046-1572

ARBITRON

PressInformation

Contact: Thorn MocarskyArbitron Inc.

410·312·8239Ihom.mocarsky@arbitron.com

FOR IMMEDIATE RELEASE

Arbitron confirms c,ontinuous improvement commit men Is in all PPM markels

COLUMBIA, MD; March 2, 2009 - Arbitron Inc. (NYSE: ARB) confirmed today that ithas been extending to all PPM markets a number of the key methodological enhancementsthai the company committed to in its agreements with the Attorneys General of New Jersey,New York and Maryland.

While there is variation in melfics and milestones based on particulars of the local marketenvironments, all of Arbitron PPM customers are in the process of receiving enhancementsto the PPM methodology in four key areas:

••••

Cell-phone-only ~ampling

Address-based samplingIn-Tab compliance ratesResponse metrics (Sample Perfonnance Indicator or SPI)

In addition, customers in all PPM markets will be seeing an increase in transparency formore of the sample metrics of in the Arbitron PPM survey research. including thedistribution of sample by lip code and by cell phone status. Arbitron will also continue toshare with all customers any current and future findings of the impact of nonrcsponse onthe PPM service.

"I am committed to continue our focus on the concerns of our PPM market customers interms of the sample size. ~;ample proportionality and sample quality of our PPM panels. Iwant to assure the industry that Arbitron is actively engaged in the continuous improvementof our PPM and Diary market services. Thanks to specific customer input, Arbitron isalready making good progress on improvements in many operalional areas," said MichaelSkarzynski, President and Chief Executive Office, Arbitron Inc. "As an integral part of thecompany's continuous improvement programs, Arbitron is on track to meet or exceed 100percent of the settlement agreement criteria with the Attorneys General of New York, NewJersey and Maryland."

Cell-phone-only samplil1Lg in all PPM markets

Arbitron will increase the sample target for cell-phone-only households in all PPM marketsto an average of 15 percent by year-end 2010. In an interim step, the current larget of 7.5percent will be raised to 12.5 percent in PPM markets by year-end 2009. (Monthlymilestones within each year will vary by marke!.)

Address-based samplin~. in all PPM markets

In keeping with the commitment to increase cell-phone-only sample in all markets.Arbitron is committing to the usc of address-based sampling technique for at least 10percent of its sampling ef:orts by late 2009 and for at least 15 percent of its recruitment

Arbitron Inc.• 9105 Patuxent Woods Drive. Columbia. Maryland 21046. www.arbiuon.eom

Arbitron confirms cvnrin/;olls improvement programsMarch 2, 2009

Page 2 0/5

efforts by the end of December 20 10 in all PPM markets. (Monthly milestones within eachyear will vary by market.)

Arbitron has already begun using addressed-based sampling for cell-phone-only householdsin PPM markets. The initial returns from the first round of address-based sampling arcindicating that markets su,:h as Nassau-Suffolk and Middlesex-Somerset-Union have a cell­phone-only penetration thai is significantly less than 15 percent.

Daily In-Tab Compliance efforts in all PPM markets

Arbitron is applying its a\erage-daily in-tab benchmark of 75 percent of installed sample toall PPM markets. Arbitron is currently implementing in all PPM markets many of thetechniques and methods that Arbitron is using to minimize differential compliance rates inorder to fulfill the terms of the New Jersey, New York and Maryland agreements. (Specificprograms and techniques arc being applied based on an individual market's in-labperformance.)

Response metric efforts in all PPM markets

The PPM markets that were first recruited in 2008 have received the benefit of the latestresponse rate and compliance programs starting with the very first recruitment contact. Inthese markets, SPI metric:; are already above the commitments to New Jersey, New Yorkand Maryland.

Arbitron will continue its focus on improving the Sample Performance Indicator in all PPMmarkets. Based on the progress to date in the company's response rate programs, Arbilronhas informed the MRC that it hopes to achieve a 2 I percent SPI average across all PPMmarkets by the end of 20 10.

Arbitron commitments to greater transparencyThe company's commitm:nts to New Jersey. New York and Maryland include greatertransparency in terms of information regarding PPM sample composition and other metricsof PPM services. Arbitrun. intends to provide this additional information in all PPMmarkets that many of its clients have indicated they would find useful and would help theirunderstanding the strengths and limitations of PPM samples.

Sample distribution by :dp codeArbitron is providing in all PPM markets installation and in-tabulation dala by individualzip code, along with market population data for Blacks, Hispanics and others (non-Black ornon-Hispanic) for each individual zip code.

Sample composition by tell-phonc-only statusArbitron will continue its practice of publishing the percentages of installed and In-Tabcell-phone-only sample in the front of all monthly Arbitron electronic PPM markel reports.

PPM response studiesThe company intends for ,111 PPM markets to benefit from the findings of a non responsebias study that it will conduct in the New York market by July 15,2009. Should thefindings indicate any mea'iUrablc statistical bias, Arbitron will inform all clients of the

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Arbirron confirms continuolls improvement programsMarch 2, 2009

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identified sources of that ~,tatistical bias in the PPM methodology and will take reasonablemeasures to address those sources.

Additional initiatives in the continuous improvement programs

The option to see the current composition of the Hispanic sample by country of origin hasbeen a topic of discussion with Hispanic broadcasters.

Arbitron has conducted a ':est of three markets selected by the Spanish Radio Association(Houston-Galveston. Los Angelcs and New York) to determine if asking the country oforigin question during one of the regular status calls to PPM households would have anadverse impact on the PPM sample. Early results from the test are indicating that Arbitronwould be able to collect and track country of origin without affecting the quality of thesample.

The decision about moving forward with eountry-of-origin tracking is pending a fullanalysis of the test.

About the Portable People Meter

The Arbitron Portable Per,ple Meter™ system uses a passive audience measurement device- about the size of a small cell phone -to track consumer exposure to media andentertainment, including broadcast, cable and satellite television; terrestrial, satellite andonline radio as well as cinema advertising and many types of place-based electronic media.Carried throughout the day by randomly selected survey participants, thc PPM™ device cantrack when and where the:1 watch television, listen to radio as well as how they interactwith other forms of media and entertainment.

The PPM detects inaudibl,~ codes embedded in the audio portion of media andentertainmcnt content dclivcred by broadcasters, content providers and distributors. At theend of the day, the meter is placed in a docking station that extracts the codes and sendsthem to a central computer. The PPM is equipped with a motion sensor, a patented qualitycontrol featurc unique to the system, which allows Arbitron to confirm the compliance ofthe PPM survey participants every day.

PI'\I ..athl~"i arc h.·\cd un uudience c"itimatc"i and rcprc"icnt theopinion of .\rhitron. PP\I ratings. likl' all audience estimut('''ihmH'H'r derived. should not he relicd on for Ilreciloil' <In'ura9· orpn'cise representatiyenes\ of a demographic or ..mHo market.

About Arbitron

Arbitron Inc. (NYSE: ARB) is a media and marketing research firm serving the media­radio, television, cable, ot1line radio and out-of-home - as well as advertisers andadvertising agencies in the United States. Arbitron's core businesses arc measuring nelworkand local market radio audiences across the United States; surveying the retail, media andproduct patterns of local market consumers; and providing application software used foranalyzing media audience and marketing information data. The company has developed thePortable People Meter, a new technology for media and marketing research.

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Arbitron's markcting and business units arc supported by a world-rcnowned rescarch andtechnology organization lxated in Columbia, Maryland.

1/1/11

Portable People Meter1M and PPM™ are marks of Arbitron IIlL

Arbitron Forward-Looking Statements

This press release containsIOIWard-laaking statements within the meaning ofthe Private Securitiestiligatian Reform Acl 0/1995. The slatemellts regarding Arbilron Inc. and its suhsidiaries in thisdocument that are not histol ical in nature, parlieularly those thai utilize terminology such as "may, ""will, .. "should, " "likely, .. "expects, .. "anlicipates. .. "estimates, .. "believes, "or "plans, " orcomparable terminology. ar,g forward-looking stOfemem.\' based on current expectations about futllreevel/lS, which we have derivedfrom infonnatian currently available to us. These/alWard-lookingsratemems involve known ar'd unknown risks and uncertainties that may cause our results to bemateriaily different from results implied in such fOlWard-looking SWTements, These risks anduncertailfties illclude, in no particular order, whether we wilf he able to:

• ahsorb costs related to legal proceedings and governmental entity interactions and avoidrelaTedfllles, limitations. or conditions all our bllsiness aetivities;

• successfuily commercialize our Portable People MeterTM service;• successfully manage tile impact on our business ofthe current economic downturn generally.

and in the adverti.ring market, in particular, incfuding, wiTho/ll limilation. the insolvency ofany ofour customers or the impact ofsuch downturn on our customers' abiliTy lO fulfill Theirpayment ohligations /0 us;

• sl/(xess/ully maintain ..mdpromoTe indUSTry usage ofour services, a critical mass 0/broadcaSTer encoding, and the proper understanding 0/ol/r audience measurement servicesand methodology inli,?ht ofgovernmental regulation, legislation. litigation. activism, oradverse public relmio"s efforts:

• compete witlt companies that may have financial, markeling, sales, technical, or otheradvantages over us;

• sllccess/ully design, recruil and maimain PPM panels that appropriately balance researchqualiTy, panel ~'ize, and operational cost:

• successfully develop, i'llplemem, andfund iniTiaTives designed to increase sample sizes:• ,;omplere the Media Roting Council. Inc. ("MRC'J audits ofour local market PPM ratings

services in a Timely manner andsllccessfully obtain and/or maintain MRC accreditaliollforour audience measuremelll business;

• rellew comrocts with Aey customer.r:• success/ully execute ol/r husiness strategies, including ell/ering illto potemiol ocquisition,

joim-venture or OTher malerial Third-party agreements:• effectively manage the impact, ifany. ofanyfurther ownership shift.s in The rodio and

advertising agency industries;• effectively respond to rapidly changing technological needs 0/our customer base, including

creating new proprietary software systems, sllch as software systems to ~'Tlpport 01/1" cellplume-only .wmpling plans, and new customer services rhat meet these need\' in a timelymanner:

• successfully manage rhe impact on costs ofdata collection due to lower respondentcooperaTion il/ survey;:, COllSIIl/ler trends including a trend Toward increa.sing incidence ofcellphone-only households, privacy concerns. technology changes, andlor governmentregulations: and

• successfully develop mid implement technology soilltion.r to encode andlol' measure newformsofmedia content and delivery, and adverlising in an increasingly compeTiTive environmem.

There are a /IIIII/ber ofadditional important factors that could cause aClllal events a/' ollr actualresults 10 differ materiallyfrom those indicated hy such falWard-looking staTements, inclllding,WiThollllimilatioll, the riskfilclOrs set forth in the caption "ITEM IA. - RISK FACTORS" ill our

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Arbitron confirms conrinzwus improvement programsMarch 2, 2009

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Annual Report on Form jO-Kfor the year ended Decemher 31, 2008, and elsewhere. and anysuhsequent periodic or current reportsfiled hy us with the Securitie.'· and /:'xchange CommissiOIl.

III addition. anyforward-looking statements contained in this document represent our estimates olllyus ofthe dore hereof and should not be relied upon as representing our estimates as of(Illysubsequel/l date. While we may elect to updateforward-looking statements at some point in thefuture, we specifically disc/dm allY obligation to do so, even ifour estimates change.

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