Nielsen To Launch Local Ratings System

Watching-TV

A key component in a local-market measurement system using set-top-box data that Nielsen plans to launch is actually its national ratings panel. Nielsen plans to cull data from the boxes, but to account for a slew of other variables, it has created a model to use trends and behaviors from the national panel to help create the new local ratings streams.  

The process of weaving in data from the national panel is part of a "weighting and factoring" process. On a conference call with clients Friday, Nielsen said it has applied for a patent for the system and will only discuss it with a client if an NDA is signed.

Nielsen's model looks to overhaul local ratings. It won't rely exclusively on set-top-boxes, on the theory that not every home (notably those with over-the-air reception) has boxes. There is also the matter of tracking when a box is on and no one is watching, and attaching demographic data.

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At least at first, an issue with a Nielsen STB product would be the slowness in reporting ratings. Nielsen Senior Vice President Pat Dineen said ratings would probably only be available on a monthly basis, although that should speed up over time.

Nielsen used the call to discuss results from a trial it has been conducting on its new system using set-top boxes in local markets, notably in diary markets. The test involved three markets: St. Louis, Greenville, S.C., and Reno, Nevada.

Nielsen said results have come in from St. Louis, which uses its local people meter technology, and Reno, a diary market. Results and analysis from Greenville, a market that uses set meters, is pending.

In addition to STB data and inferences from the national sample, Nielsen will also meld in other elements, including some that it currently uses, as part of the new local streams.

Dineen reiterated on the call that moving ahead with launching a system will be the result of consultation with its clients: station groups, agencies, etc.

During the test, Nielsen used data gleaned from STBs owned by cable operator Charter. Dineen acknowledged that it is important that STB data from other providers be used. He said Nielsen is moving ahead in acquiring it, but could not release details of which operators may give it access.

Nonetheless, he said Nielsen needs data from fewer homes than has been assumed to create sturdy local ratings. How many is to be determined, but Nielsen may not mix all the STB data it acquires into the system. For example, if it garners data from 250,000 boxes in St. Louis, it may only use a subset at a particular time.

During the call, Dineen discussed some of the results in St. Louis and Reno, where data in both was culled last July. The Reno data showed considerable variance between Nielsen's current ratings (culled from diaries) and the ratings produced under the system with STBs.

For example, in Reno, looking at prime-time ratings for Monday-Friday across the 25-to-54 demo, the diary method showed a particular station had a 4.5 average in the July's first week, and a 1.2 in the last week. Using the STB method with "weighting & factoring," the first week had a 3.4 and the last week had a 2.9.

One conclusion is the new method would yield more stability. The weekly stability increased by 96%, according to Nielsen.

Data is St. Louis showed less variance between the current local people meter method there and the new system.

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