Consumer Dominates Nielsen's Growth: Media Research, Trades Subside

The Nielsen Co., the world's largest media and marketing research provider, last week reported strong revenues and income for the second quarter and first half of 2007, as part of an earnings release indicating that much of its growth is coming from consumer research services, as opposed to media services like Nielsen Media Research.

Nielsen reported revenues of $1.169 billion for the quarter, a 15% increase over pro forma revenues of $1.016 billion for the first quarter of 2006. First half revenues of $2.241 billion, were up 11% over the first half of 2006. Nielsen reported operating income of $100 million for the first quarter, and $156 million for the first half.

During the first half of 2007, consumer research services grew to 57% of Nielsen's total revenues, two percentage points greater than it accounted for during the first half of 2006. Media services, including Nielsen Media Research, declined to 31% of Nielsen Co.'s revenues in the first half of 2007, down from 32% in the first half of 2006. Business media, including trade publications like Adweek, Billboard and The Hollywood Reporter, declined to 12% of Nielsen Co.'s revenues from 13% in the first half of 2006.



The shifts likely were impacted by various mergers, acquisitions, and divestitures during the periods, as well as an ongoing restructuring of Nielsen Co. since it has been acquired by a group of private equity firms over the period, but it also reflects shifting results among its various operating divisions. Revenues for Nielsen's consumer research services rose 15.9% during the first half, more than twice the 7.1% that revenues for its media services grew. Revenues for its business media operations declined 0.5% during the half.

The shift is even more pronounced during the most recent quarter (ending June 30) in which consumer research revenues rose 23.0%, media research revenues grew 6.3%, and business media revenues gained 3.8%.

Next story loading loading..