Nielsen Media Research Overview: Read for Professor Close

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Nielsen Media ResearchOverview Read for
Professor Closes Marketing Class

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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

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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

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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

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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

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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

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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

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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
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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

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Sample Recruitment

• Membership
• Basic Household Cooperation
• Alternate Household Cooperation - must match
  basic with respect to
• Presence of Children
• Cable Status

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Sample Recruitment

• Vacant households are re-checked periodically
• Occupational Disqualification
• Non-TV Households

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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

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National Service

• Published reports
• Electronic data delivery
• Custom analysis
• Client service

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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

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Local Methods Used

• Diary
• Meter Diary
• People Meters

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The Television Diary - Fun Facts

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

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The Television Diary

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

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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.

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The Television Diary - Fun Facts

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

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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.

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The Television Diary - Fun Facts

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

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The Television Diary - Fun Facts

• 4 Separate Diary Samples Make up a Rating Book.
• Custom Analysis and Special Reports are Available
  to Customers.

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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

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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, VCRs and Tuning Devices are
  Measured.
• Some Homes May be TD.

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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.

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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.

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The Local People Meter

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

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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.

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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.

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In other words

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

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

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Definitions of Terms GRPs 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 WXYZs audience Mon-Fri
6-615P Mon Tue Wed Thu Fri 20 30
40 30 30 Total 150 GRPs
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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 WXYZs Audience
Mon-Fri 6-615P Reach 7 WXYZ Households
70 10 Total TV Households
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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 WXYZs Audience Mon-Fri
6-615P Number of Exposures 15 Average
Frequency Number of Exposures
15 2.1 Total HHs Tuned to
WXYZ 7
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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...

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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 6-615pm 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
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Illustration of TV TermsGRPs, Reach Frequency
WXYZ
WXYZ
WXYZ
WXYZ
WXYZ
WXYZ
WXYZ Tues 5P-515P Tues Rtg 30
WXYZ Mon 5P-515P Mon Rtg 30

• GRP 30 30 60
• Reach (Cume) 3 HHs/10 Total HHs 30
• Frequency 6 Exposures/3 HHs 2 Times
• GRPs Reach x Frequency

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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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THANK YOU!
ANY QUESTIONS?