Nielsen Station Index
A Local People Meter Update
For The
TvB Research Conference
October 25, 2000
Copyright 2000 - Nielsen Media Research
AGENDA
• Why
• Timetable
• Reported Data
• Summary
Copyright 2000 - Nielsen Media Research
QUOTE
“We applaud and fully support Nielsen Media
Research’s initiative to introduce people meter
technology into local markets. This brings ‘best
in class’ measurement tools to local market
television…..This is vital to maintaining
advertiser confidence to continue investing in
the methods”
Rich Wilson
Procter & Gamble
Vice President, Media
Copyright 2000 - Nielsen Media Research
QUOTE
“I am strongly in favor of local people meters.
I believe it’s a superior and more accurate way
to evaluate local television and a stronger basis
for spending our clients’ dollars. This starts
bringing together national and local
measurements to a common platform.”
Jon Swallen
Director,
Media Knowledge
Universal McCann
Copyright 2000 - Nielsen Media Research
NIELSEN’S CHALLENGE:
FILL THREE ROLES
Neutral Umpire
Strive for objective
measurement of
all markets
Architect
Help build and
support new
measures
Guardian
Maintain the
currency for the
established markets
Strategic vision: To be
grounded at the center
The reality: 3-way tension
and continual adjusting
Copyright 2000 - Nielsen Media Research
WHY
• Proven track record
- 14 Years experience
- State of the art technology
- More complete measure of viewing
- More accurate measure of viewers
• Single Platform
- Common national / local measures
- Ad-buying process
- more efficient
- more inclusive
• Lower Ratings?
- Agency CPP adjustments
- Continuous monitoring of buy
- Greater confidence in local television
Copyright 2000 - Nielsen Media Research
EVOLUTION OF MEASUREMENT
• National Set Meter
• Local Diaries
• Local Set Meters / Diaries
• National People Meters
• Local People Meters
1949
1954
1959
1987
2001
Copyright 2000 - Nielsen Media Research
PEOPLE METERS . . .
AN ESTABLISHED METHOD
• Nielsen Media research National
Sample Since 1987
• Standard of Measurement in more
than 30 countries worldwide
Copyright 2000 - Nielsen Media Research
TIME FOR CHANGE
• Fragmentation
• Growth in Spot Advertising
• Digital Technology
--All Demand Electronic Measure of
Persons
Copyright 2000 - Nielsen Media Research
35%
Contribution to HH Rating Total
Boston, November Cycle
30%
1995
1999
25%
20%
15%
10%
5%
0%
<1 1-2 2-3 3-4 4-5 5-6 6-7 7-8 9-10 >10
Rating of
Copyright 2000 - Nielsen Media Research
200
Viewing Sources
Boston, November Cycle
180
1995
1999
number of sources
160
140
120
100
80
60
40
20
0
viewable
with viewing
with 5% more
quarter hours viewed
Copyright 2000 - Nielsen Media Research
LOCAL PEOPLE METER BENEFITS
• Continuous demographic measure
• Better analytical capabilities
• Single platform for National / Local
• Larger sample sizes / single method
• Reduced relative error
• Elimination of Zero Cell
Copyright 2000 - Nielsen Media Research
Higher Response Rates
Sample Performance Indicator
November 1999
60.0
51.6%
50.0
40.0%
40.0
30.0
20.0
10.0
Boston National
People Meters
36.1%
26.1%
National People
Meters
Local Boston Meters
Local Boston Diaries
0.0
Copyright 2000 - Nielsen Media Research
Larger Effective Sample Sizes
One-Week Individual Day
Quarter-Hour Ratings
900
P2+
800
W18+
700
W25-54
600
M18+
500
M25-54
400
T12-17
300
200
Current
100
PM 600
Installed
0
Copyright 2000 - Nielsen Media Research
Larger Effective Sample Sizes
Four-Week Individual Day
Quarter Hour Ratings
2000
P2+
1800
W18+
1600
1400
1200
W25-54
M18+
1000
M25-54
800
T12-17
600
400
200
0
Current
PM 600
Installed
Copyright 2000 - Nielsen Media Research
Reduction in Relative Error
70
New York, Rating = 5
One week
compared to current set-meter / diary
60
50
40
30
Current
20
LPM 540 HH
10
0
LPM 800 HH
Women 25 - 54
Teens 12 - 17
Copyright 2000 - Nielsen Media Research
REDUCTION IN RELATIVE ERROR
Net result:
less “bounce”… greater
confidence in local market
viewing estimates
Copyright 2000 - Nielsen Media Research
Boston People Meter Plan
Copyright 2000 - Nielsen Media Research
TIMETABLE
• August, 2000 —— Recruitment begins
• September 2000 — First HH’s installed
• January 2001 —— 300 HH’s
• April 2001 ———— 420 HH’s
• July 2001 ———— 600 HH’s
6 -12 month demonstration period
start @ 420 HH’s
Copyright 2000 - Nielsen Media Research
DEMONSTRATION PLAN
• Use 120 National People Meter homes
• Area Probability Methodology - use of
Membership Representatives means
higher demographic cooperation rates
• Two year sample turnover compared to
current five year turnover
Copyright 2000 - Nielsen Media Research
DEMONSTRATION PLAN:
REPORTED DATA
• Household overnights; demographic
overnights in future
• Monthly printed reports and data tapes
• Data calculated based on quarter-hour
crediting, same as currently exists
Copyright 2000 - Nielsen Media Research
DEMONSTRATION MARKET:
PARALLEL DATA
• Demonstration report and data tapes
released with 10 day delay
• Official overnights released following
business morning; demonstration
overnights released with 4 day delay
Copyright 2000 - Nielsen Media Research
REPORTING DURING
DEMONSTRATION
• Custom Demographic Reports
- Minute X Minute Ratings
- Minute X Minute Flows
- Reach and Frequency
- Only-Only-Both
• Comparative Reports
Copyright 2000 - Nielsen Media Research
DEMONSTRATION MARKET:
PARALLEL DATA
• The current meter/diary system
remains standard currency during
demonstration period
• Length of demonstration based on
client input
Copyright 2000 - Nielsen Media Research
FUTURE MARKETS
• Nine more in 3 years
• Order of selection to be determined
Copyright 2000 - Nielsen Media Research
LOCAL PEOPLE METER UPDATE
Summary
• Continuous/complete demographic
measurement
• Single platform for ad-buying process
• Larger sample sizes / single method
• Improved demographic response rates
• More powerful data to evaluate
programming
Copyright 2000 - Nielsen Media Research
Nielsen Station Index
A Local People Meter Update
For The
TvB Research Conference
October 25, 2000
Copyright 2000 - Nielsen Media Research