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

2. 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

3. Nielsen Media Research
Nielsen Television Index NTI*
Nielsen Syndication Service NSS*
Nielsen Homevideo Index NHI
Nielsen Advertiser Service NAS
Nielsen Monitor-Plus
Nielsen Station Index NSI
Nielsen Hispanic Television Index NHTI
Nielsen Hispanic Station Index NHSI
Nielsen Interactive Service
Nielsen Sports Marketing Service NSMS
New Media Services NMS
* Recently joined together to form NABSS - Nielsen Agency, Broadcast, & Syndicator Service

4. 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

5. 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

6. 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

7. Nielsen Media Research National People Meter homes are dispersed throughout every section of the country in approximate proportion to the population. **
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8. 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

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

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

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

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

13. 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

14. National Service Published reports Electronic data delivery
Custom analysis
Client service

15. 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

16. Diary Meter + Diary People Meters
Local Methods Used
Diary
Meter + Diary
People Meters

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

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

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

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

21. 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.

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

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

24. The Household Meter - Fun Facts
There will be 53 Metered Markets by January 2002.
Meters Have Two Different Methodologies for Recruitment
Area Probability
Telephone Frame
Meters are Installed by Field Technicians

25. 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.

26. 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.

27. 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.

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

29. 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.

30. 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.

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

32. Households Using Television
How is the data used?
Terms of the Trade
Households Using Television
Universe Estimates
SHARE
Rating

33. 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

34. 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 x x x x
Thursday x x x
Friday x x x
Saturday
Sunday
Example: WXYZ’s audience Mon-Fri 6-615P
Mon Tue Wed Thu Fri
Total = 150 GRP’s

35. 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 x x x x
Thursday x x x
Friday x x x
Saturday
Sunday
Example: WXYZ’s Audience Mon-Fri 6-615P
Reach WXYZ Households =
10 Total TV Households

36. 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 x x x 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 = =
Total HHs Tuned to WXYZ

37. 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...

38. Definitions of Terms: Frequency Distribution
Total
HHs: 10
Monday x x
Tuesday x x x
Wednes x x x 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

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

40. 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

41. THANK YOU!
ANY QUESTIONS?