• by Joe Mandese  @mp_joemandese, April 21, 2005

For years, the TV industry has been bemoaning the lack of an organization that could field the kind of objective research and development about audience measurement that is essential to the medium's future, but which may not be feasible through a ratings supplier like Nielsen. Now it appears to have two. And both are somehow tied to, or influenced by Nielsen.

During this week's annual convention in New York, the Advertising Research Foundation updated the industry on the progress of "the entity," a new organization that would champion methodological research on audience measurement, not just for television but also for all media. That entity is likely to operate under the auspices of the ARF, though it is expected to have a full-time CEO who would manage its efforts independently. Nielsen's top research executive, Paul Donato, is chairman of the ARF, and some believe the evolution of this new entity has been greatly influenced by Nielsen.

Nielsen, meanwhile, has hired a well-known and well-regarded industry research executive to organize a separate entity, funded directly by Nielsen, which has committed $2.5 million to its first annual budget. Richard Zackon, a consultant and self-described "facilitator" who previously had been the head of research for the Cabletelevision Advertising Bureau and Court TV, has been hired to put the Nielsen-funded group together with input from Nielsen's clients. Zackon this week told MDN that details of the organization were still being fleshed out, but that he planned to build a coalition of Nielsen clients and Nielsen management to design its structure, as well as its goals.

In its update, the ARF said its entity is also beginning to take flesh, but the details still are being worked out, especially how to deal with "legal issues." The initiative is an outgrowth of an "accountability" forum the ARF hosted Jan. 31 to address a rising tide of demand for a committee that could take on industry research initiatives that were not appropriate for Nielsen to tackle. The concept was first proposed by George Ivie, executive director of the Media Rating Council, but was quickly embraced by the ARF.

Among the ARF's conclusions are that the initiative should "exhaust" all "non-JIC alternatives" first. JIC is an acronym for a joint industry committee, a jointly owned industry research organization that operates in many other parts of the world, but which the ARF and Nielsen have argued is illegal in the U.S. for antitrust reasons. JICs typically define research specifications, take bids and award contracts to research suppliers.

During a panel discussion that followed the ARF's update on Tuesday, Tim Brooks, head of research at Lifetime Television and chairman of a key ARF committee, said it was possible that the entity might evolve into a "creeping JIC," but would not elaborate on what that might be. Whatever it evolves into, he said it should operate under what he termed a "sunshine principle," meaning that it should fully disclose all of its operations and that they should be "transparent" to the entire industry.

Mark Kaline, the powerful head of media at Ford Motor Co., said it was imperative that the TV industry get its act together, because corporations like Ford are under greater scrutiny to be accountable to their shareholders for their marketing and media buying decisions.

Andy Fessel, head of research for Aegis' Freestyle Interactive unit, echoed that sentiment, and said Madison Avenue needed to respond to its clients' challenges to become more accountable. But he went one step further, saying the industry actually needed to develop a "new currency" that takes into account how a younger generation of consumers are using new and traditional media.

Alan Wurtzel, head of research at NBC, implied that none of the R&D entities were sufficient to deal with the industry's audience measurement concerns and that what was really needed, was "competition." He advocated that the industry support new "baby step" competitors to Nielsen, but did not elaborate on what they might be.

Lifetime's Brooks concluded with another principle, one he described as the "wing-walker's principle," a reference to people who literally walk on the wings of airplanes. "Don't let go of something until you get hold of something else," he said.

The ARF said it has had two follow up meetings since its Jan. 31 forum and that it is continuing to survey its stakeholders, but that the conclusion is that a new entity is "a good idea."