The NAB, with the support of the Committee on Local Television Audience Measurement (COLTAM), passed an important resolution regarding Nielsen’s local television measurement methods. The resolution passed with unanimous support during the 2/5 NAB Board of Directors regularly-scheduled winter board meeting in DC. The resolution reads as follows:
“Whereas: Nielsen has proposed releasing a new “hybrid” measurement later this year that would serve as “currency” for determining advertising rates in local broadcast television markets, and;
Whereas: Nielsen is also adding “broadband-only homes” into the local TV market samples, thus reducing the number of “traditional” TV homes in the Nielsen sample, and;
Whereas: The impact of both of these new measurements could understate actual viewership of local television stations, and;
Whereas: It is in the best interest of everyone to have the most accurate research measurement;
Therefore, the Committee on Local Television Audience Measurement (COLTAM) and the National Association of Broadcasters (NAB) Television Board of Directors resolves that:
• Nielsen delay implementation of hybrid measurement, methodology and technology until it can be fully tested in the marketplace, and
• Nielsen increase its sample size in local TV markets to make “broadband-only homes” additive to its samples beyond 2014.
COLTAM Chair and ABC SVP, Research & Electronic Measurement Pat Liguori tells RBR-TVBR: “COLTAM is gratified that the NAB TV Board recognized the importance of the two issues we put before it. That the resolution passed unanimously is indicative of the broad scope of concern among broadcasters regarding recent and proposed changes in Nielsen’s measurement technology and methodology.”
Nielsen responded: “Nielsen is committed to improving local TV measurement. Increasing sample sizes through Hybrid audience measurement will provide more stable ratings and build confidence in the local media marketplace. We will continue to work with many industry stakeholders, including the MRC and NAB’s COLTAM, to review Hybrid methodology and technology. It is important to get it right.
Clients have been promised both preliminary and parallel data phases before the full implementation of Hybrid and we have already pushed out our implementation timelines as we work through the required research to support the proposed methodology. We will continue to work closely with the industry on our progress and timelines.
On a parallel track, we recently announced our commitment to invest in a panel expansion for five Local People Meter markets during the coming calendar year. We hear the concerns about the inclusion of broadband-only homes in the local TV samples. We are currently evaluating several different options to address concerns and we expect to make an announcement in the near future.”
RBR-TVBR observation: Some serious language from Nielsen’s bread and butter. Nielsen measurement is the holy grail of TV station currency. Any change to measurement could have a dramatic negative effect on a station’s bottom line and should not be taken lightly. One problem that immediately comes to mind is how Nielsen will define HUT (households using television) in Fall 2014 when they start measuring tablet and smartphone tuning in local and national samples. We salute NAB and COLTAM for calling out these issues and putting Nielsen on notice of the importance of accuracy in its data. It’s better for Nielsen to get this done right than to get it done right now.
Bottom line, broadcasters want to make sure Nielsen’s new currency accurately reflects viewership numbers in real time, across the board before it goes into effect. Nielsen needs the buy-in from broadcasters—as well as media agencies—before it sets a new table. Quite a bit of money is at stake here and if all of a sudden the numbers that have been trending for local viewership is completely skewed into say half of what they were, it will not only hurt broadcasters, but give doubt to Nielsen numbers’ reliability across the board. An increase in sample size will always improve stability, but not always accuracy, however.
