• by Joe Mandese  @mp_joemandese, February 12, 2008

At a time when Nielsen is experiencing systemic problems with its core TV audience measurement systems, the company Monday announced plans to dramatically expand its efforts to measure alternative sources of TV viewing, including viewing that occurs on PCs and Internet-connected devices in is regular people meter household panels. Nielsen described the rollout as a "carefully phased test," but implied the rollout is a fait accompli.

"Its' a test in case we need to pull back if there are problems with cooperation or erosion of quality. But if there are no problems we will continue to add homes," Nielsen spokesman Gary Holmes confirmed for MediaDailyNews.

The announcement, part of an update on Nielsen's co-called A2/M2, or anytime/anywhere media measurement initiative, comes on the eve of its national client meetings this week in Las Vegas. It also comes at a time when there are increasing concerns over Nielsen's ability to maintain the quality of its traditional TV ratings systems, even as it seeks to augment them with alternative TV platform measurement.

The move to include computer-based TV measurement in people meter households is especially noteworthy, because Nielsen's research to date has shown much lower cooperation rates among consumers who are more fearful of having their Internet activity tracked than their TV viewing behavior.

Nielsen originally signaled its plans for integrating TV and online measurement in October 2006, when it announced its full acquisition of NetRatings, and revealed that it was developing an "integrated panel" that would simultaneously measure TV-based and Internet-based viewing of television programming. Nielsen has also created a fused database integrating its traditional TV ratings with Nielsen//NetRatings' online audience estimates.

More recently, Nielsen Online began marketing a new product dubbed the VideoCensus, which measures video programming viewed on Internet sites.

All of these steps are part of the grander A2/M2 initiative envisioned by Nielsen chief Susan Whiting, which also includes expansion of its out-of-home measurement, mobile TV measurement plans on cell phones and portable electronic devices, and enhancements to its traditional TV audience measurement systems, such as a "mailable" electronic meter to replace diaries in some markets, and dramatic expansion of its people meters in local TV markets.

But some Nielsen clients are concerned that, as important as a universal, multiplatform measurement plan of television and online video may be, it's taking valuable resources away form Nielsen's core measurement systems, and at the very least, has been a distraction for Nielsen executives and engineers.

"Today's client communication says, 'As the most wide-ranging research and development plan in Nielsen's history, A2/M2 was designed to "follow the video" across all platforms and keep pace with the evolving ways that people watch television in contemporary society."," noted one Nielsen client, adding, "It's nice to dream, but Nielsen has a well-earned reputation for producing nightmares; poor judgment, late delivery and shoddy service are an all too persistent theme over time. Nielsen may have a former GE executive at the helm, but never use a jet engine manufactured at 770 Broadway."

Especially vexing has been a number of data error glitches disclosed in the past couple of months, including several involving Nielsen's supposedly fool-proof A/P (active/passive) coding system, which Nielsen has attributed either to equipment failures or human errors.

Nielsen last week also acknowledged systemic delays in the reporting of its national TV ratings so far this season, and said it was taking steps to correct the process.

Nielsen executives emphasized that the data glitches are rare, and that the company has been disclosing them as part of its policy for complete "transparency" with its clients.