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

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 ResearchNielsen Television Index NTI*Nielsen Syndication Service NSS*Nielsen Homevideo Index NHINielsen Advertiser Service NASNielsen Monitor-PlusNielsen Station Index NSINielsen Hispanic Television Index NHTINielsen Hispanic Station Index NHSINielsen Interactive ServiceNielsen Sports Marketing Service NSMSNew Media Services NMS

* 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.

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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 ProbabilitySample 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

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

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

DiaryMeter + DiaryPeople 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.


• Diary homes get reminder phone calls and postcards throughout the week.


• Diaries are Editing for Quality. Not all Diaries make the Cut.

• When Demographics are not Filled out, we must “impute” the missing audience.


• Certain Households May Count More than others based on Geography, Race, Origin, Cable and Presence of Children.


• 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 2002.

• 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 National Sample is Stratified Differently.

• Local People Meters will Combine National Homes with a Local Sample.


• 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’sGross Rating Points

A sum of all rating points

Total HHs: 10Monday x x Tuesday x x xWednes x x x xThursday x x xFriday x x x Saturday Sunday

Example: WXYZ’s audience Mon-Fri 6-615PMon Tue Wed Thu Fri

20 30 40 30 30 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.


Example: WXYZ’s Audience Mon-Fri 6-615P

Reach 7 WXYZ Households = 70 10 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: 10Monday x x Tuesday x x xWednes x x x xThursday x x xFriday x x x Saturday SundayExample: WXYZ’s Audience Mon-Fri 6-615P

Number of Exposures: 15Average 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


M-F 6-6:15pmPercentage of HH that saw the program at least once 70Percentage of HH that saw the program at least twice 60Percentage of HH that saw the program at least three times 20

Illustration of TV Terms:GRP’s, Reach & Frequency

GRP = 30 + 30 = 60

Reach (Cume) =3 HHs/10 Total HHs = 30

Frequency = 6 Exposures/3 HHs = 2 TimesGRP’s = Reach x Frequency

WXYZ WXYZ

WXYZ WXYZ WXYZWXYZ

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 = CPPCost of Spot/(000)= CPM

Example: Spot = $1000 / 5 rating = $200 CPP

Spot = $1000/500(000) GI = $2 CPM

THANK YOU!

ANY QUESTIONS?

Documents

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