• by David Goetzl  @dgoetzl, November 9, 2010

Finding a way to deploy set-top-box data has become so urgent for local broadcasters that a consortium prompted by the TVB is launching its own feasibility study. 

The key issues: can the data be used to help stations in diary markets? Is the data stable and reliable? Can it be used as some sort of currency? How can it best be used to generate single-source metrics?

The consortium evaluating STB data in local markets is known as the Collaborative Alliance Set Top Box Think Tank, which includes ABC, AT&T and Carat. Steering the initiative is TVB, the trade group for local stations; agency MPG; the Franco Research Group; and Rentrak, which has sold STB data to 49 stations.

The Think Tank's deadline is ambitious; it wants to offer some results and insight when the broader Collaborative Alliance holds its latest gathering with industry executives -- overseen by MPG -- in December. But the group wants its conclusions to move from idea implementation, and hopes to give buyers useful information moving forward.

The group's work follows a comprehensive STB report from the Coalition of Innovative Media Measurement, which found widespread agreement that STB data "can greatly benefit local measurement."

MPG's director of local broadcast, Nicole Torres, said: "It is very important that the buyers' perspectives on how (STB) data would be useful and applicable to the local buying community be considered as part of the development of valuable metrics."

In its research, the Think Tank is evaluating opportunities and pitfalls in three markets, representing three different types of measurement that Nielsen employs. Houston uses local people meters; Birmingham, a combination of set meters and diaries; and a diary market is used in Grand Rapids, Mich. All are measured by Rentrak.

Of the 210 markets Nielsen serves, 154 use diaries in some form, which rely on viewer motivation and dedication. In markets that use diaries in part or exclusively, stations are eager for systems that supply ratings more frequently. There is some belief that STB data can provide that.

In all markets, there is some call for larger sample sizes than what Nielsen offers with its panels, and a belief that culling data from STBs will help with expansion.

STB data can also provide more granular viewing information locally, including commercial retention rates. Rentrak is working on that issue, but is still refining data.

The Think Tank's work is likely to address just how realistic STB benefits may be. "What we're doing is saying where we want you to head, and what the real potential is on this," said TVB President Steve Lanzano.

He hopes the Think Tank's research leads to a path forward in single-source metrics, where a link between particular commercial viewing and product purchasing is demonstrated. "That's nirvana," he adds.

Some companies that aggregate STB data products have offered single-source products, but not for local markets. A reliable single-source metric could one day bring about a new currency.

But stations in diary markets may have shorter-term goals. Unwilling to wait for Nielsen ratings to arrive quarterly, they want STB data to provide them with guidance in setting pricing, and how best to pitch advertisers. Buyers want the same data to help their planning and purchasing.

It would be used "as an alternative, or as an adjunct, of what we currently have ... as another source for information for them in the short term," said Pam Franco, who heads the Franco Research Group.

Still, STB data has downfalls, which include not providing demographic viewing information.

That's an advantage for Nielsen, which isn't sitting out the STB movement. It has been conducting a study, similar to Think Tank, that also uses three markets covering Nielsen's three different methodologies: St. Louis (with LPMs); Greenville, S.C. (set meters/ diaries); and Reno, Nev. (diaries).

Nielsen plans a "hybrid" model in the STB arena, combining the granular STB data with its current panels that can help it attach demo information.

Rentrak CEO Bill Livek suggested that a two-pronged model could prevail. "The media community is moving in the direction of sample base currency (Nielsen) and TV data base currency (Rentrak), complementing one another in what we refer to as a basket of currencies. It is needed to provide marketers with greater insight into the viewing and purchasing habits of their consumers," he said.