Nielsen will incorporate big data into local ratings in all markets from January
Nielsen said local television ratings, which combine big data from set-top boxes and smart TVs with viewer panels, will become the local ratings currency in all markets starting in January.
“Customers will be able to use Big Data + Panel in Local to transact starting January 2,” Nielsen said in a letter to customers. “Based on industry feedback and feasibility, this will be a currency transition with no parallel transaction period.”
With increasing fragmentation and the shift to streaming, it has become difficult for local broadcasters and cable operators to offer detailed and nuanced viewer information due to small panel sizes competing with digital advertising.
While Nielsen faces challenges in measuring ratings at the national level from new competitors that base their ratings data on big data, the situation is more difficult in the local market.
Some networks, such as EW Scripps, now rely exclusively on data from Nielsen competitor Comscore for their local ratings. (Scripps uses Nielsen for its national networks.)
In its letter to customers, Nielsen stated that its customers would be allowed to use Big Data + Panel in Local for transactions.
Nielsen’s panel-only NLTV data stream is available for research and analysis purposes only.
“We understand that a currency transition can cause disruptions in the media buying and selling process,” Nielsen said. “To ensure you have enough time and information to prepare for the currency transition, Big Data + Panel impact data for planning and audience estimates is now available to support negotiations for Q1 2025 effective immediately. Nielsen’s guidance for post-buy analytics for Q3 and Q4 2024 will remain panel-only, as using consistent methodologies for buy and post-buy analytics is critical for buyers and sellers.
Criticism of Nielsen intensified during the pandemic, when COVID-19 prevented Nielsen employees from visiting households to maintain the quality of the audience panel. As a result, fewer households were on tab or providing usable data.
Nielsen’s accreditation by the Media Rating Council was suspended, meaning the agency had doubts about Nielsen’s methodology and its ability to provide reliable data.
Nielsen regained accreditation for its old national ratings system, which is based on a panel of around 40,000 metered households. Nielsen’s system for adding big data to its panel data is currently under review by the MRC. The panel-based local ratings system has not regained its accreditation.
In March, Comscore’s system for measuring television viewing at national and local levels was accredited by the MRC.
