This bulletin provides radio stations, advertisers, agencies, and other users of Arbitron Portable People Meter™ (PPM™) data with information regarding market specification changes and with other information regarding Arbitron’s PPM reports and services.

PPM Report Period

Audience estimates in each Arbitron PPM Radio Market Report are based on a four-week report period. This bulletin covers the report period below and may be supplemented by additional bulletins or notices as warranted.

PPM Release Schedules and Methodology

Additional information on the release schedule for PPM audience estimates and data and information on PPM methodology is available at the Arbitron Web site at:

http://www.arbitron.com/portable_people_meters/home.htm

Note: Although all PPM markets utilize methodology that is similar in most respects, the Houston-Galveston market employs methodology that may differ in some respects from the methodology in other PPM Pre-Currency and Currency markets.

Market Definition Changes

No changes in market definition or ethnic controls are planned for any of the above PPM radio markets during the July 2008 report period.

Metro Definition Reevaluation Requests

Arbitron Metro Survey Area definitions are reevaluated on a decennial basis, taking into account updated commuting data published in the decennial census, as well as available data concerning listening patterns. Arbitron Metro Survey Area definitions may also be reevaluated at the request of report subscribers.

Subscribers should note, however, that Metro Survey Area definition changes in any market scheduled for conversion from Diary measurement to PPM measurement must be finalized within the twelve months prior to the market’s first Pre-Currency report period. Requests for Metro Definition reevaluations of any market scheduled for conversion to PPM should therefore be made more than 12 months in advance of Pre-Currency reporting. In addition, to ensure a smooth transition from Diary measurement to electronic measurement, market definition requests involving the addition or deletion of Metro counties (or county equivalents) will not be considered for any PPM Currency or Pre-Currency market until three years after the market’s first Pre-Currency report period, or until January 2011, whichever comes first. Arbitron will continue to implement changes involving the creation or consolidation of split counties (or county equivalents) in Diary markets that have been converted to PPM markets, provided the changes do not require the addition or deletion of the corresponding whole counties.

High Density Hispanic Area (HDHA) Criteria

In the counties in the PPM markets identified above (under “PPM Markets”), a county remains eligible for an HDHA during the July 2008 report period only if the following criteria are met:

• The county must contain at least one ZIP Code whose population is at least 25 percent Hispanic; and
• The proposed ethnically split portions of the county (HDHA and Balance) must have sufficient population, as a proportion of the total Metro, to appropriately be allocated an in-tab target of at least 21 diaries. An HDHA will be retained as long as the target for each portion of the county is at least 18 diaries.

Digital Radio Reporting

The term “Digital Radio” is used to refer to radio stations that broadcast in a digital format. Examples of Digital Radio stations include HD-primary stations, HD-Multicast stations, and the Internet streams of AM stations, FM stations, and HD-Multicast stations.

Effective with the July 2008 report period, Arbitron plans to begin reporting estimates for eligible encoded Digital Radio stations (and Total Line Reporting combos that include a Digital Radio station), subject to Minimum Reporting Standards. (Effective July 2008, exposure to encoded Digital Radio stations will be included in Persons Using Measured Media estimates.)

Effective with the July 2008 report period, Arbitron is adding numerous band indicators (in addition to AM and FM band indicators) to accommodate the reporting of Digital Radio stations. Arbitron will provide detailed information regarding these additional band identifiers well in advance of the release of any audience estimates in which the newly available band identifiers appear.

Digital Radio Station Information

Arbitron plans to publish a PPM Station Encoding Preview for individual PPM markets during the July 2008 report period, in which each encoded station eligible for reporting is identified by call letters, frequency, and Station Name (as submitted to Arbitron). Station Information appearing in the PPM Station Encoding Preview and in the PPM Radio Market Report, effective with the July 2008 report period, is based on information provided by Digital Radio stations (via Arbitron’s Station Information Form), the FCC, and other relevant sources.

Expanded Total Line Reporting Options

In 2006, Arbitron introduced Total Line Reporting as an option for AM and FM stations that simulcast their programming 100%, including commercials and PSA’s. Listening for eligible stations that request Total Line Reporting is combined and reported on a single estimate line with the call letters of the “primary” station selected by the combo (subject to meeting Minimum Reporting Standards).

Effective with the July 2008 report period, Arbitron is expanding the Total Line Reporting options to allow combinations of AM, FM, HD-Multicast, and streaming Internet stations that simulcast 100% (including commercials and PSA’s) to request Total Line Reporting.

• Total Line Reporting combos that include an AM or FM station must select an AM or FM station as the “primary” station.
• Separate estimates are not available for stations that receive Total Line Reporting.
• AM, FM, and HD-Multicast stations home to an Arbitron market may request Total Line Reporting for 100% simulcast partners home to the same Arbitron market or an adjacent Arbitron market, but may not request Total Line Reporting for stations home to different nonadjacent markets.

Note: To be eligible for Total Line Reporting for any PPM survey month, stations must simulcast all programming 100% (including commercials and PSA’s) throughout the three-month interval corresponding to Arbitron’s quarterly survey period.

Internet Streaming Technical Guidelines

In order to ensure proper encoding for Web listening, Internet streams should be operating at or above the following MINIMUM rates:

• 44.1 kHz sample rate (may appear as “44 kHz” on software screens), and
• 32 kbps bit rate

Although optimal settings may vary depending on the software used to stream an Internet station, the above minimum settings should ensure successful encoding for the brands of Web-streaming software currently in use. Adherence to the above minimum technical standards is particularly important for Internet stations that use Microsoft^® Web-streaming products. Arbitron will continue to update our guidelines for minimum settings as Internet technology develops.

Note: Time-domain compression technology is sometimes used to allow the insertion of additional commercial time in a given piece of programming. Use of this technology should PRECEDE the Arbitron encoder to ensure consistently receivable encoding. (Use of time-domain compression technologies AFTER the Arbitron encoder may negatively impact encoding.)

PPM Meter Enhancement

Effective May 2008, Arbitron deployed a new, enhanced version of the PPM meter in all Radio First markets. The enhanced meter, relative to the meter deployed prior to May 2008, has slightly extended battery life; improved capacity to recognize at-home listening; equivalent performance in media code detection; and equivalence in all other relevant respects. Field testing showed an increase of slightly less than three percentage points in the amount of time correctly identified as at-home.

Format Descriptors

Effective with the Summer 2008 survey, Arbitron is updating its list of format descriptors to include Spanish Contemporary Christian.

Encoding

Arbitron will provide encoding equipment without a fee to each eligible AM or FM station that chooses to encode (subject to limitations). AM and FM stations are eligible to encode their signals, and to receive encoding equipment, regardless of subscriber status. Encoding equipment is also available for HD-Multicast stations and streaming Internet stations. Arbitron will generally provide subscribers with encoding equipment for these stations at no cost, subject to limitations. Encoding equipment will also be available for lease to nonsubscribers wishing to encode their HD-Multicast and streaming Internet stations.

No Metro audience estimates will be tabulated or reported for stations that choose not to encode. Once a market is converted to PPM electronic measurement, estimates based on Diaries will no longer be available.

Although a station may begin encoding after the reporting period begins, stations should note that audience estimates will not be adjusted to exclude unencoded intervals. For example, audience estimates for a station that begins encoding the third week of the report period will include two weeks of zero listening averaged with listening that occurs during the third and fourth weeks of the report period. Similarly, any portion of a day during which a station’s signal is not encoded will be counted as zero listening, since no meter will be able to detect listening to the station. It is for that reason that Arbitron provides a monitor and a back-up encoder. Close attention to the guidelines and recommendations below will help ensure that each station’s audience estimates reflect any listening that occurs during the station’s broadcast hours:

• Stations will need to give high priority to ensuring the encoder is operating. Although the encoder is easy to use, the encoder will need monitoring. The station will need to monitor encoding at all times. We will provide the station with the tools (encoding monitor, back-up encoders, and associated documents) to make this possible.

• Arbitron’s Encoding Operations staff will be available to help the station begin encoding. Working in cooperation with Arbitron’s Encoding Operations staff, the station engineer will have the tools necessary to ensure the effective installation of encoding equipment. A staff member will be available 24 hours a day to address questions or concerns regarding operation of the encoding equipment.

• In the event of an encoder failure:
• The station should switch to the Back-up or Spare encoder immediately!
• The station should contact Arbitron Encoding Operations.

Notes:

• Each AM station, FM station, Internet stream, and HD-Multicast station should be encoded separately unless expressly instructed otherwise by Arbitron.

• Upon request, Arbitron will note, on the Special Notices page of the applicable PPM Radio Market Report, any technical difficulties or unencoded intervals (as defined by Arbitron) that a qualifying station reports to Arbitron (subject to verification where applicable).

• Encoding equipment should be used only as instructed by Arbitron. Arbitron may request the return of its encoding equipment from, or decline to publish audience estimates for, any station that uses Arbitron’s encoding equipment in an unauthorized manner.

Encoding Steps

The following steps are necessary to ensure that the equipment is correctly selected, installed, and tested before the station is fully encoded and eligible for audience estimates:

• The station signs and returns an encoding agreement.
  This will help clarify the parties’ respective responsibilities.

• The equipment is shipped.
  A representative from Arbitron Encoding Operations will contact the station’s engineer to assess the station’s technical needs. Arbitron then ships the appropriate equipment.

• The equipment is installed.
  Once received, the engineer should install the encoding equipment (main and back-up encoder) and in-station encoding monitor as soon as possible.

• The equipment is tested.
  Once the equipment is installed, the station’s engineer and Arbitron Encoding Operations need to test each encoder (main and back-up) to make sure the equipment is functioning properly. This will require an off-air audio sample from each encoder.

• Arbitron confirms the station is properly encoded.
  Once all components have been tested, Arbitron will provide the station with confirmation that the station is considered encoded and eligible for reporting,

• The station monitors its encoder status.
  Following installation of the encoder, it is the station’s responsibility to monitor the encoding status using the provided in-station monitor. Arbitron’s engineers recommend connecting the monitor to the station’s existing air-fault alarm system.

Station Information

Radio stations in PPM markets will continue to receive quarterly Station Information Packets (SIPs). We ask that stations in PPM markets continue to complete and return the packets on a timely basis. Stations may further update their submitted station information at any time. Arbitron strongly encourages stations to note the following:

• Stations should continue to submit Station Information Profiles (SIPs).
  Station Information Profiles will still be needed to enable Arbitron to report detailed and timely station information such as format. For stations that reach into adjacent markets in which diaries are used, Station Names will continue to be used to assign listening credit in the adjacent markets. The careful and timely submission of Station Names may therefore continue to be important.

• Stations should notify Arbitron of Frequency Moves, “Hot” Call Letter Changes, and other complex changes in advance.
  These changes will continue to have important reporting implications. By notifying us in advance, Arbitron can work with stations to ensure that their estimates are reported most appropriately. We will not be able, for example, to implement frequency moves retroactively.

• Stations should promptly notify Arbitron about call letter changes and other station information.
  With more frequent and timely reports than our quarterly Diary service, updates will have to be processed quickly. We may be unable to note call letter changes and other important changes if stations delay notifying us. Station Information changes must be received by the last day of the applicable report period.

Please address updates to:

Address:
Radio Station Relations
Arbitron Inc.
9705 Patuxent Woods Drive
Columbia, MD 21046-1572
Attention: Station Information

Phone: (410) 312-8062
Fax: (410) 312-8619

Station Information updates will be acknowledged by e-mail, letter, or postcard.

The policy and procedure amendment(s) set forth in this bulletin are hereby incorporated by reference into, and deemed to amend and supersede in pertinent part, the most recent Description of Methodology as published in the Local Radio Market Report or as otherwise furnished to subscribers.

For more detailed information on the topics in this bulletin, including the specific markets affected by Arbitron’s ongoing efforts to improve sample quality, please contact your local Arbitron sales representative.

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