• by David Goetzl , April 13, 2011

As Nielsen looks to sign clients for its fledgling measurement product using set-top-box (STB) data, Rentrak continues to strike arrangements with agencies and programmers for its service. MPG, the agency that represents Sears and Dannon, has a deal to begin receiving Rentrak's STB-based data streams that can offer second-by-second viewership tracking.

MPG executive Sasha Savic said the agency plans to use the data as it develops strategies for the national upfront buying market this summer -- as well as with the spot buys it makes across the country. Rentrak says it provides data individually for all 210 DMAs.

Many clients believe the STB-derived information improves upon the ratings Nielsen provides in small markets, since Nielsen relies on manual diaries collected only several times a year. Also, Rentrak offers the promise of data from considerably more homes than Nielsen uses to derive its national and local ratings.

Regarding the national upfront, MPG Chief Commercial Officer Savic said the Rentrak data "will help us expand our knowledge of how to target behaviorally, rather than simply relying on traditional age/sex demographics, making our TV buys more effective."

Rentrak CEO Bill Livek said that "as the marketplace continues to embrace STB data ... MPG is moving quickly to uncover new ways to help their clients better understand the fast-moving changes."

In February, Rentrak said the Starcom MediaVest Group had re-upped to use its national measurement service, and would subscribe to its local-market service in 20 markets.

Rentrak culls data from STBs deployed by AT&T, Charter, Dish Network and Midcontinent Communications, a cable operator in the Dakotas and Minnesota.

MTV Networks and Hallmark Channel are among those that receive Rentrak data in addition to Nielsen tracking. But Rentrak can help smaller networks that are not rated by Nielsen with some ratings data that they can use to pitch advertisers.

Other research companies using STB data are TRA, Kantar and TiVo.

MPG executive vice president Mitch Oscar said the STB marketplace is constantly evolving with multiple recent initiatives. "STB data is important and becoming increasingly more so as it permeates measurement across multiple platforms," Oscar said. "In recent months, Rentrak has brokered a deal with Donovan to measure highly targeted networks; the 4As has begun an initiative with technology (company) BlackArrow to deploy dynamic ad insertion in VOD, of which Rentrak is the industry's key provider of usage; and last Friday, Nielsen's Webinar basically verified the valuable work Rentrak has done in the delivery of local measurement with its support of STB data stability and granularity."

Nielsen has no plans to use STB data in its national ratings service, but is in the early stages of developing a product for use in local markets and recruiting customers. Rentrak has a head start and signed station group clients such as Sinclair, Gray and Nexstar.

How quickly Nielsen will debut its product is unclear. During the Webinar last week, it informed clients that testing has been completed in the St. Louis and Reno markets.

Reno is a diary market and Nielsen believes its STB product could ultimately allow it to move away from the much-criticized diaries.

Of course, that depends on how eager station groups and agencies are to purchase the product. Nielsen executive Pat Dineen, armed with the results from the trial, said he is ready to begin discussions to gauge the interest level.

Nielsen is employing a "hybrid" approach with its STB product, where it will meld data from multiple sources. In addition to the boxes, it has developed a "weighting and factoring" system to also use data from its national ratings panel.

Nielsen believes its product has a leg up partly because it can account for viewing across a full market, including in homes without STBs (such as those receiving TV over-the-air). It also believes it has found a way to ensure viewing is not counted when a box is left on but no one is watching. It also has years of experience attaching demographic data to its ratings.