Thursday, April 16, 2009

Nielsen ratings obscure DVR effect

Until lately, a Nielsen rating told what percentage of a population watched a program “live.”

Now, Nielsen ratings merge that “live” number with the percentage of people who recorded the program on their DVRs and watched it within three days (seven, in some markets).

These new ratings reveal that DVRs boost program viewing up to 24% in some demos. But, this rise in program viewing doesn’t translate into a proportionate rise in ad viewing. Those who view “live” TV programs see up to 80% of the ads, while those who watch “time-shifted” TV view 10% - 25% of the ads.

Yet, Nielsen merges the “live” program rating with the “time-shifted” rating, to give buyers a dubious number that embodies the extremes of ad viewing.

“Live” ratings worked.

When Nielsen provided only “live” program numbers, media planners never knew how many of those who watched a program also watched the ads during that program. But, program viewers at least had a chance to view the commercials. And, most of them did, most of the time.

But now, viewers of a recorded program zap at least 75% of the ads. In fact, some are recording for the sole purpose of missing ads, since 20% of playback starts within five minutes of the live broadcast.

Needed: commercial ratings.

"Live+3" ratings are “program ratings," not the "commercial ratings" generated by Nielsen’s national surveys. Commercial ratings show how many see the ads, not just the programs.

Program ratings are based on average quarter hour viewing, while commercial ratings are average minute viewing. Nielsen must switch to "average minute" in local markets like Macon, Augusta, and Savannah, to offer them commercial ratings.

For now, media buyers are stuck with program ratings that merge “live” and “time-shifted” viewing into one ambiguous number.

Credits to David Goetzl, Media Daily News, 3/26/09; Jim Cooper, Adweek Media, 1/19/09, Kevin Gallagher, TV Week, 12/15/08; Wayne Friedman, TV Week, 11/14/05, Steve Sternberg, Media Week, 9/18/06.

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Haynes Marketing Network is a full-service marketing and advertising agency
in Macon, Ga. 478-742-5266 http://www.haynesmarketing.com/

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