Clear Channel Radio wants a better ratings system to replace paper diaries, which it believes are antiquated.

Clear Channel has challenged the ratings industry to develop a better system and has requested proposals to develop a radio ratings system that it says “will accurately and credibly represent radio’s true performance and value to advertisers.”

Clear Channel says it’s aim is to try an help radio compete more effectively for ad
dollars.

CEO John Hogan believes: “Radio is a powerful, effective medium whose influence and reach have been underreported and diluted…In discussions with other radio groups, it’s become clear that a different approach is needed to find an industry-wide solution. We want to investigate those options.”

A number of recent studies show radio is a superior performer compared to TV and other media, says Clear Channel, quoting a study conducted by consumer-research house Millward Brown (reported on radioinfo in an earlier story) found that radio outperformed television in driving sales of advertiser products/services by some 49%.

Hogan says diary results are received up to a month after the data is collected and the accuracy and credibility of the diary method has come under increasing skepticism over the past several years.

Incumbent audience measurement contractor Arbitron has been invited to take part in the development of a better system and says it is prepared to present to Clear Channel and the rest of the radio industry a “fast-track” proposal that could deliver Portable People Meter radio ratings in the U.S. by April 2006.

Arbitron President Steve Morris says his company is prepared to unveil PPM rollout plan which will give radio “the earliest possible benefit of an electronic ratings system while allowing other media the option to participate at a later date.”

He urged the rest of the radio industry to “take up Clear Channel’s sense of urgency” for the adoption of electronic measurement.