Nielsen Media Research Overview: Read for Professor Close’s Marketing Class

Agenda Overview of Nielsen Media Research The National Sample- People Meters The Local Sample- Diary and Household Meters How the Data is used- Terms and Formulas

Nielsen Media Research Nielsen Television IndexNTI* Nielsen Syndication ServiceNSS* Nielsen Homevideo IndexNHI Nielsen Advertiser Service NAS Nielsen Monitor-Plus Nielsen Station IndexNSI Nielsen Hispanic Television IndexNHTI Nielsen Hispanic Station IndexNHSI Nielsen Interactive Service Nielsen Sports Marketing ServiceNSMS New Media ServicesNMS * Recently joined together to form NABSS - Nielsen Agency, Broadcast, & Syndicator Service

National People Meter Sample  5,000 households  14,400+ people, plus visitors  Active participation required  Household & demographic ratings 365 days a year  Homes remain in the sample up to 2 years

National People Meter  Each member of the household is assigned a button  Household members indicate their viewing by pressing their assigned button  Visitors are also measured  Indicate their presence by pushing an unassigned button  Enter their age and sex

National People Meter  Installed at every TV set in Household  Meter tracks channel viewed  Data stored in “Home Unit”  Data is downloaded into Nielsen Database overnight via telephone lines

Nielsen Media Research National People Meter homes are dispersed throughout every section of the country in approximate proportion to the population. ** ** * ** * ** * ** * ** * * * ** ** * * * * * * ** * * * ** * * * **** * * * ** ** * * * * * **

Sample Objective & Design Give each housing unit an equal chance of being selected The Nielsen People Meter sample is a multi-stage area probability sample of U.S. housing units

Sample Selection Process Multi Stage Probability Sample Selection THIS TECHNIQUE ASSURES - ALL HOMES HAVE AN EQUAL CHANCE OF SELECTION - PROPER GEOGRAPHIC DISPERSION - FULL RANGE OF HOUSEHOLD CHARACTERISTICS 4. Housing Units 3. Blocks 2. Enumeration Districts 1. Counties

Sample Plan u Estimates based on a national sample of approximately 5,000 households, including Alaska and Hawaii u Dispersed geographically to facilitate territorial and regional reporting u Includes both urban and rural areas

Sample Recruitment  Membership  Basic Household Cooperation  Alternate Household Cooperation - must match basic with respect to:  Presence of Children  Cable Status

Sample Recruitment  Vacant households are re-checked periodically  Occupational Disqualification  Non-TV Households

Metering System  All operable/used TV receivers (at least five inches in size) are metered  VCR and video game hook ups are metered  Cable & satellite receivers monitored

National Service  Published reports  Electronic data delivery  Custom analysis  Client service

National Report Examples  Broadcast network prime averages & rankings  Broadcast prime grid  Cable Network weekly ranking  Cable Penetration  Share of Viewing  Universe Estimates  Mini-Series Ranking  Top Network Programs of All Time  PC/Internet Access in NPM Sample

Local Methods Used Diary Meter + Diary People Meters

The Television Diary - Fun Facts Represents Affordable Measurement in All 210 Television Markets. Diary Households are Randomly Selected from Listed and Unlisted Phone Numbers.

The Television Diary Recruitment is Done Via The Telephone Diaries are Mailed to Acceptors, Refusers as well as Non-Contacts.

The Television Diary Cash is used as an incentive $1.00- $5.00. Being Selected by Nielsen Carries more Weight than Cash. Special Ethnic Treatment is Sometimes used in African-American and Hispanic Households.

The Television Diary - Fun Facts Diary homes get reminder phone calls and postcards throughout the week.

The Television Diary - Fun Facts Diaries are Editing for Quality. Not all Diaries make the Cut. When Demographics are not Filled out, we must “impute” the missing audience.

The Television Diary - Fun Facts Certain Households May Count More than others based on Geography, Race, Origin, Cable and Presence of Children.

The Television Diary - Fun Facts 4 Separate Diary Samples Make up a Rating Book. Custom Analysis and Special Reports are Available to Customers.

The Household Meter - Fun Facts There will be 53 Metered Markets by January Meters Have Two Different Methodologies for Recruitment –Area Probability –Telephone Frame Meters are Installed by Field Technicians

The Meter - Fun Facts The Goal of the Sample is to Match the Sample with the Universe Estimates. Homes are Weighted to Reflect the Universe Estimates All TV Sets, VCR’s and Tuning Devices are Measured. Some Homes May be TD.

Meter - Fun Facts The Meter Collects HH Viewing Demographics are Collected by a Separate Diary sample. The Two Samples are Combined in a Process Called Meter-Diary Integration. A Home Can Be in the Sample up to 5 Years.

The Local People Meter The Goal is to Apply Continuous Measurement in Local Markets. The National Sample is not big enough to Service Local Markets.

The Local People Meter The National Sample is Stratified Differently. Local People Meters will Combine National Homes with a Local Sample.

The Local People Meter Area Probability Methodology. 2 Year Turnover. Collection of Demographics is Electronic. Continuous Local Measurement Boston is a Demonstration Market More Expensive than Current Methodology - Greater Benefits.

The Big Question… WHY DO WE DO THIS? Nielsen measures television in order to report viewing data to TV stations, advertising agencies, producers, syndicators, broadcast and cable networks, cable companies; all who need the data for their purposes.

In other words… WHY DO WE DO THIS? The advertising industry needs an independent, unbiased third party to set the currency for the marketplace.

How is the data used? Terms of the Trade

Basic Media Terms Rating- % of a universe of homes or people tuned to a particular program Share- % of an audience tuned to a particular program based on the number of homes watching TV HUT or PUT- Households or Persons Using Television

Definitions of Terms: GRP’s Gross Rating Points A sum of all rating points Total HHs: 10 Monday x x Tuesday x x x Wednes xxx x Thursday x x x Friday x x x Saturday Sunday Example: WXYZ’s audience Mon-Fri 6-615P MonTueWed Thu Fri Total = 150 GRP’s

Definitions of Terms: Reach (Cume) The number of DIFFERENT or unduplicated HHs or persons exposed to a TV program or commercial AT LEAST ONCE during the average week for a reported time period. Total HHs: 10 Monday x x Tuesday x x x Wednes xxx x Thursday x x x Friday x x x Saturday Sunday Example: WXYZ’s Audience Mon-Fri 6-615P Reach 7 WXYZ Households = Total TV Households

Definitions of Terms: Frequency Average number of times a HH, or person, viewed a program, station or commercial during a specific time period Total HHs: 10 Monday x x Tuesday x x x Wednes xxx x Thursday x x x Friday x x x Saturday Sunday Example: WXYZ’s Audience Mon-Fri 6-615P Number of Exposures: 15 Average Frequency: Number of Exposures = 15 = 2.1 Total HHs Tuned to WXYZ 7

Definition of Terms: Frequency Distribution Number or percentage of households, or persons, that are exposed to a given program, station, or commercial one time, two times, three times, etc...

Definitions of Terms: Frequency Distribution Total HHs: 10 Monday x x Tuesday x x x Wednes xxx x Thursday x x x Friday x x x Saturday Sunday M-F 6-6:15pm Percentage of HH that saw the program at least once 70 Percentage of HH that saw the program at least twice 60 Percentage of HH that saw the program at least three times 20

Illustration of TV Terms: GRP’s, Reach & Frequency GRP = = 60 Reach (Cume) =3 HHs/10 Total HHs = 30 Frequency = 6 Exposures/3 HHs = 2 Times üGRP’s = Reach x Frequency WXYZ WXYZ Mon 5P-5:15P Mon Rtg = 30 WXYZ Tues 5P-5:15P Tues Rtg 30

Popular Computations: Projecting Ratings and CPP PJ= Most recent share x year ago PUT Impressions (000): Rating x UE in table 6 Cost Per Point (CPP) or Cost Per Thousand (CPM) Cost of Spot/Rating = CPP Cost of Spot/(000)= CPM Example: Spot = $1000 / 5 rating = $200 CPP Spot = $1000/500(000) GI = $2 CPM

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