ATLANTA - (Business Wire) Cumulus Media Inc. (NASDAQ: CMLS), John Dickey, Chief Operating Officer of Cumulus, announced today the invitation for qualified vendors to submit proposals to Cumulus for a new service designed to measure both quantitative and qualitative audience characteristics for its stations in markets 100+. As of January 1, 2009, Cumulus will no longer subscribe to the Arbitron Radio Market Reports currently published in 50 of these markets.
“We have reached the point where Cumulus recognizes that there is only one way to close the growing gap between needs of its stations/advertisers in these markets and the state of audience measurement– and that is to initiate a fundamentally new approach. As the underwriter of this effort, we will take the leadership role in solution design and vendor selection.
Among other things, we will require this to be a stand-alone, turn-key service. Cumulus will be its first customer, but the service must function as an independent, objective entity that is accountable to and can provide on-going support for the larger broadcast and advertising communities. Our plan is to work closely with leading researchers, other broadcast organizations, and advertisers to design a system that is credible, accurate, and comprehensive – both today and in the future.
We’ve been studying the issue for some time now and our conversations with other major stakeholders have been very encouraging – we agree on most, if not all, of the major issues.”
Cumulus has posted the RFP on its website at http://ratingsrfp.cumulus.com/. Among the requirements listed for the solution, which will have both data and software components, are:
- Vendors must have proven credentials in both qualitative and quantitative media research;
- Vendors must possess the human and technical infrastructure to execute, process, and deliver, and support a high volume of concurrent research today and significantly larger volumes in the future;
- The vendor must design and execute the research in accordance with Media Ratings Council (“MRC”) standards for accreditation. Though MRC accreditation will not be required at the outset, the vendor must pledge its intent to secure accreditation in a reasonable time frame and maintain it for the life of the service.
“The most important requirement is that the solution credibly provide the broadcast and advertising industries with a demonstrably stronger audience measurement system than we have in markets today,” Dickey added. “This includes greater accuracy and stability, data types that help both Agency and Direct customers make sound decisions, and metrics that help advertisers make more direct comparisons of radio to other local media. Ultimately, we want to help advertisers more accurately understand both the size and quality of our brands’ user communities so they can value them accordingly.”
As for its status as a customer of Arbitron in other markets, Dickey notes: “We are a strong supporter of Arbitron’s efforts to develop and implement the new PPM technology in our larger markets. In all likelihood, PPM will not be available to these smaller markets, so we need a credible alternative solution. We have told Arbitron that we welcome their participation in this RFP process and look forward to any proposal that they might offer.”
The deadline for RFP submissions is scheduled for May 14, 2008. Instructions for vendors, including question submission and direct communication with Cumulus and its employees are outlined in the RFP.
Cumulus Media Inc. is the second-largest radio company in the United States based on stations owned and operated. Following the completion of all pending acquisitions and divestitures, Cumulus, directly and through its investment in Cumulus Media Partners, will own or operate 344 radio stations in 67 U.S. media markets. Cumulus's headquarters are in Atlanta, Georgia, and its web site is www.cumulus.com. Cumulus shares are traded on the NASDAQ Global Select Market under the symbol CMLS.
Forward-Looking Statements
Certain statements in this release may constitute "forward-looking" statements, which are statements that involve risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from the results expressed or implied in these forward-looking statements, due to various risks, uncertainties or other factors.
Cumulus Media Inc., Atlanta
Jodi Gibson, 404-260-6600
Jodi.Gibson@cumulus.com
