What’s the best way to measure audience viewership? For years, US broadcast and cable networks have relied on Nielsen ratings (audience measurement data by research firm Nielsen Media Research) to determine which shows to keep or cancel, and how much to charge advertisers for commercial time slots. Nielsen, for its part, gathered data from a sample of random households representing various demographics, using either “meters” (electronic devices connected to TVs) or paper “diaries” (wherein participants self-record their viewing habits).
New technologies, however, tend to change audience viewing patterns. This, in turn, is leading to changes in data measurement. Digital Video Recorders (DVRs) like TiVo, for example, enabled users to record shows and watch them at any time, as well as to fast-forward through commercials. And with the Internet, viewers can choose to watch videos online, or on their mobile phones. With “time shifting,” it’s hard to keep track of who is watching “what” and “when.”
While Nielsen launched a $1 billion “Anytime Anywhere Media Measurement” initiative in 2006 (aimed at measuring audiences on three screens — television, computer and mobile phone), it has yet to integrate Internet data into its overall ratings. Nielsen is targeting that for 2011, after an extensive evaluation process. It’s also still developing devices to measure mobile viewing.
"Given that more than $70 billion of television advertising is bought and sold using Nielsen ratings, we are careful not to take any actions that would dilute the reliability of the core television ratings data," says Sara Erichson, President of Nielsen's Media Client Services for North America.
Not satisfied, and pressured by tough economic times to improve efficiency, some media companies and advertisers recently formed the Coalition for Innovative Media Measurement (CIMM). The group — made up of many Nielsen clients like NBC Universal, Viacom, The Walt Disney Co. and others — aims to find and fund new methodologies and approaches to audience measurement, as a way to supplement Nielsen ratings.
CIMM will first focus on cross-platform research and cable set-top box data, or other data collected from cable, satellite, telco TV and DVRs. The set-top box system could potentially report precise, second-by-second viewing of millions of households, a huge increase from Nielsen’s current People Meter panel of less than 20,000 households. In fact, a growing number of research firms are already exploring alternative ways of measuring viewing, including Nielsen itself, TNS Media, Rentrak, TiVo, etc. But, as publication Multichannel News reports, there are still lots of kinks to iron out: Data formats are still inconsistent among different operators, some box models are incapable of capturing data, and it’s not always easy to ensure or record who's actually watching.
Meanwhile, some companies are exploring other innovative ways to gather audience data. For example, AdAge.com reports that MediaVest, a full-service media specialist firm, will be testing ads based on research firm TRA’s “Media TRAnalystics” system, which combines set-top box data with data from shopper loyalty programs to see how many viewers actually end up buying the product after watching an ad. Another example: Mobile broadcast company FLO TV and media research firm Rentrak recently partnered to provide information regarding mobile viewing patterns of FLO TV subscribers — without, of course, divulging their personal information. Some companies continue to look into “biometric” measurements and how the eyes of viewers move as ads and programming roll, says The Boston Globe.
So what will be the best way to measure audience viewing and to ensure maximum ad efficiency in this digital age? The answer, if any, will likely change as technology changes, but one thing is certain: The field is now wide-open. Nielsen has to adapt quickly and stay tuned to client demands and digital disruptions if it wants to hold on to its status as the de facto source for audience ratings in the future.
