LEADING MULTICULTURAL ADVERTISING AGENCIES OPPOSE SENATE BILL S. 1372 CITING IT AS UNFAIR, INACCURATE, EXCLUSIVE AND UNRESPONSIVE

    FOR IMMEDIATE RELEASE

FOR FURTHER INFORMATION, CONTACT:
Regina Dove, Burrell Communications Group
(312) 297-9711
Deana Balfour-Williamson, R.J. Dale
(312) 644-2316
Bill Imada, IW Group
(310) 289-5588


LEADING MULTICULTURAL ADVERTISING AGENCIES OPPOSE SENATE BILL S. 1372 CITING IT AS UNFAIR, INACCURATE, EXCLUSIVE AND UNRESPONSIVE

Senate Bill S. 1372 Considered Bad Legislation Among Agency Leaders

/24-7PressRelease/ - CHICAGO, IL, July 26, 2005 — Agency leaders specializing in multicultural advertising and marketing voiced strong opposition to Senate Bill 1372, authored by U.S. Senator Conrad Burns (R-Mt) and known as the "Fairness, Accuracy, Inclusivity and Responsiveness in Ratings Act of 2005."

Three leading agencies agreed that S. 1372 would mandate a costly and unnecessary accreditation process for private corporations responsible for monitoring the broadcast viewing habits of consumers.

Senate Bill 1372 proposes that media research organizations such as Nielsen Media Research and Arbitron, which are in the process of introducing new methods for collecting broadcast viewership and listenership data, would have to secure full accreditation by the Media Rating Council (MRC), a non-profit organization that currently works with rating companies on a voluntary basis, before it could introduce new data collection technology such as the Local People Meters (LPMs). Agency leaders fear that this newly proposed structure under S. 1372 could take several years to review, develop and implement.

"S. 1372 could potentially stifle the industry," said McGhee Williams Osse, co-chief executive officer of Burrell Communications Group, one of the largest African American-owned and operated advertising agencies in the U.S. "Advertising agencies, marketers, governmental agencies and research companies need the best technology available to gather consumer viewing and consumption habits. S. 1372 would hinder advances in securing consumer information, and could set research back years. Clearly this impacts our effectiveness in marketing."

"Mandatory accreditation will impede progressive change and adversely affect advertising revenue for smaller television networks, stations and advertising agencies devoted to minority consumers," stated Robert Dale, president and CEO of R.J. Dale Advertising and Public Relations. "Additional regulation is unwarranted and goes against the Federal Trade Commission's decree that well-constructed industry self-regulatory efforts can be more prompt, flexible and effective than government regulation."

Under current arrangements with rating companies such as Nielsen Media Research, Spanish-language rating procedures cannot be accredited under existing MRC requirements. S. 1372 would require additional steps for MRC's accreditation service which would make it financially difficult for many local and regional Spanish-language stations to afford.

"Passage of S. 1372 would be disastrous for station owners, marketers, advertisers and Hispanic-owned and operated marketing agencies," said Ray Durazo, president of Durazo Communications and a member of the Independent Task Force on Television Measurement. "New accreditation procedures will only increase costs for the rating companies and the networks, stations, and agencies that are working to serve the needs of Latino consumers. Additionally, this legislation will serve as a disincentive for independent rating firms to introduce more effective methods for measuring TV viewing audiences."

While Nielsen Media Research and Arbitron have been involved in monitoring Asian Pacific American (APA) households for years, both companies are currently meeting with APA community, business and civic leaders to secure their feedback on current consumer media rating procedures in an effort to continually improve its measuring methods.

"Asian Pacific American-owned and operated advertising agencies have been pleased with the progress that has been made in effectively monitoring the media viewing and listening habits of APA consumers," said Bill Imada, chairman of IW Group and president of the Asian American Advertising Federation. "S. 1372 threatens to impede the progress we have already made with the rating companies. Our members want to continue the dialogue with Nielsen and Arbitron, not add layers that would interfere with all of the progress we have made."

S. 1372 is scheduled to be heard by the Senate Committee on Commerce, Science and Transportation on Wed., July 27, 2005, in Washington.

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