Accuracy:
One of the major complaints about the Nielsen ratings is that they are
outdated, ineffective and inaccurate. Have students consider this fact as they
explore ratings and advertising during these lessons.
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Even the most experienced industry users of TV ratings data are liable
to forget one crucial point--the numbers aren't real. Like any survey
data, Nielsen ratings are subject to statistical errors of various
kinds, as well as issues of cooperation rates, respondent compliance,
and so on. They are merely estimates, after all. As such, it doesn't
make much sense to present them beyond one decimal point, because this
implies a degree of accuracy that doesn't exist. Also, small differences
in ratings numbers often are not statistically significant. Claiming
victory with a 10.4 share over a competitor's 10.2 share may not be only
trivial, it may be just plain wrong.
The Nielsen data are currently the only game in
town. This has led to criticism by some users that the numbers could be
better. The three major TV net works have set up a "ratings
laboratory" demonstrate that it is possible to collect better
viewing data. Whether or not Nielsen refines its methods or faces
competition in the rating business in the future, the above disclaimers
and cautions will remain in place because the data will remain complex
and open to misinterpretation. Despite these caveats and pitfalls, TV
ratings will remain a source of vital information for those within the
media world. For those outside of it, they can provide a fascinating
mirror of our society and time.
from How to Read TV Ratings by James C.
Roymondo, American Demographics magazine, March 1997 |
By DAVID BAUDER, AP Television Writer
NEW YORK - Television's biggest mystery
this season has nothing to do with what's on the air. Everyone in the industry
is talking about it: Where have all the young viewers gone? Or have they gone
anywhere at all?
It's just another chapter in the TV's dysfunctional marriage to the Nielsen
ratings, where breaking up would be more painful than staying together.
Nielsen Media Research's claim that prime-time
viewing among men aged 18-to-34 has dropped by 7 percent this season is hotly
disputed by TV networks, where overall viewership is down this season. The
debate has renewed long-running tensions between broadcasters and the company
they pay to measure their audience.
Given Nielsen's monopoly, the clash is
inevitable. The research company's numbers decide where billions of dollars
worth of advertising is spent and whether TV shows even entire networks
live or die.
Several broadcast executives wonder whether
Nielsen is unfit for a wired world with hundreds of networks, digital video
recorders and impatient channel surfers.
"I do worry about technology's advances
being ahead of Nielsen's ability to measure it," said Alan Wurtzel,
research president at NBC, which has lost, on average, more than a million
viewers a week from last year. "I do believe that has everything to do with
being a monopoly."
The monopoly is as old as the medium, ever since Arthur Nielsen translated
the measurement system that he devised for radio in 1942 to television. The
company has been largely impervious to challenge; one notable attempt went under
in 1999.
Criticism from the networks grows loud whenever Nielsen detects an
unexpectedly large drop in TV audience size.
"A few years ago, (young male viewership) was at a record high, and
there was no outrage expressed against that," sniffed Jack Loftus, Nielsen
spokesman.
One of the industry's top number-crunchers, CBS chief researcher David Poltrack, believes this autumn's ratings drop can be tied to 105 men who aren't
pushing enough buttons.
Nielsen gathers its ratings through a sample of 5,100 homes nationwide. Among
men aged 18-to-24, where the bulk of the viewership decrease is concentrated,
that's just 600 people. Poltrack wants Nielsen to investigate whether a subset
of these men just 105 of them are unreliable because they really don't
want to participate in Nielsen's study.
Wurtzel has suggested that Nielsen has worked hard to recruit new Hispanic
viewers into its sample, and that they have proven less reliable than past
participants in punching the buttons that record what they're watching.
Almost every time there's a blip in the statistics, the sample is
responsible, Wurtzel said.
After a long investigation, a mysterious drop in TV watching in 1972 was
traced to Nielsen using a new glue to attach its monitoring device to
televisions. When the TV set warmed from use, some of the monitors loosened and
dropped off.
"We have billions of dollars riding on this," Wurtzel said.
"We can't afford to have mistakes."
Loftus dismisses Wurtzel's theory, saying the number of new Hispanic viewers
is too small to make much difference. Nielsen is looking into Poltrack's ideas,
but said it has found no evidence of a large drop in participation.
There's always the obvious explanation: maybe men are actually watching less
TV.
Kate Lynch, global research director at the advertising firm Starcom USA,
understands why Wurtzel and his network colleague don't want to believe that.
"All he can sell is his audience," she said. "If they're
missing, he's got to blame somebody."
The networks are concerned that Nielsen's measurement system, which worked
well in the days of three big broadcast networks, is archaic today. Viewership
is so small for some of the tiny cable networks that Nielsen can barely offer a
reliable picture of who's watching.
Nielsen admits that its sample does not include homes with digital video
recorders machines like TiVo (news
- web
sites) because it can't measure shows that are recorded and watched
later. Networks say bypassing these tech-savvy homes means Nielsen is bypassing
some of the most dedicated TV viewers, perhaps skewing their survey.
It will be at least a year or two before DVR homes are included, Loftus said.
Nielsen has committed to doubling its national sample of 5,100 homes within
two years. Getting ready for the days of digital TV signals, Nielsen is
experimenting with a device that reads codes embedded within the TV picture.
The company has also tested systems that would make it easier for
participating families, such as an electronic sensor of who is watching, but
found them to be more expensive than clients were willing to pay, Loftus said.
Nielsen has been very aggressive, Loftus said, but its ability to cope with a
rapidly changing world is a legitimate question.
"We all have a stake in this and we all have to work together, and
that's what we're trying to do," he said.
Ultimately, there's some question about how aggressive the networks want
Nielsen to be.
Networks and advertising agencies spent $60 million in the 1990s to bankroll
a Nielsen competitor, Statistical Research, Inc., that experimented with
technologies more advanced than anything Nielsen was using at the time.
When SRI was operating, Nielsen "was never more responsive to their
customer base," Wurtzel said.
Yet faced with the decision in 1999 of whether to fund SRI fully so it could
put its experiments in operation, the networks balked.
"In many ways the industry has what it bargained for," said Gale
Metzgar, SRI president. "They did let (SRI's system) go down the
drain."
Starcom's Lynch, who believes Nielsen is doing "an OK to good job,"
said networks are suspicious of innovation for fear of what new measurements
will tell them.
For instance, advertisers have unsuccessfully tried to get Nielsen to measure
how many people are watching commercials. One recent non-Nielsen study of DVR
users found three-quarters of them fast-forwarded through ads; networks have no
interest in publicizing that, she said.
"They want good numbers," she said. "Not accurate
numbers."
Poltrack, who believes Nielsen has improved its service but also worries
about its ability to deal with new technology, conceded a certain fear of the
unknown.
"What we need, what we look for Nielsen to provide, is stability,"
he said.
The current flap over young viewers is familiar; networks took out magazine
advertisements in 1996 to complain when Nielsen reported a dropoff in pro
football viewership that year.
"This problem is here today and will be gone tomorrow and then we'll
forget about it," Metzgar said. "Then, five years from now, another
problem will crop up."
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