Arbitron creates the ratings for a large percentage of radio stations across the country. These ratings, in turn, provide advertisers with a gauge on how much they should paying for advertising, forcing radio stations to tweak their rates, and thus their bottoms lines, accordingly. This probably also affects playlists on these radio stations in their quest to make more money for their shareholders. So...how accurate are these ratings?
For a thorough analysis of Arbitron see Prof. Tom Hutchison's book: Record Label Marketing.
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