Neilson Ratings... Once upon a time in a magical kingdom

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Maynerd ICPA #32240

Neilson Ratings...

Once upon a time in a magical kingdom called the Netherlands, a conglomerate of wizards developed a magical book to determine what television programs were enchanting the masses. Now, fifty years later, people from around the world tediously scribble down what television shows they are watching in order to appease the kings of TV: sponsors.

Take out the fairytale references and you have the basic history of the Nielsen Ratings, a system that supposedly estimates very precisely how many homes are watching a given television program at one time.
Created by the Dutch conglomerate Verenigde Nederlandse Uitgeversbedrijven (or VNU for those with no idea how to pronounce it) in the 1950s, the system is primarily powered by viewer diaries.

When watching television, each household viewer must write down what they are watching every 15 minutes. Each participant in the study represents upwards of 13,000 people in their demographic (determined by age, sex, ethnicity etc.) and is paid a nominal fee for their cooperation.

While it may seem like an adequate system on the surface, its hardcore supporters unknowingly believe in the fairytale of its accuracy.

The biggest argument against the Nielsen Ratings is that reporting one's television viewing quickly becomes bothersome. While most people initially have no problem writing down what they are watching every 15 minutes, after a few weeks many participants only keep track of a small percentage of their television viewing.

Studies have shown that participants will often completely neglect to report the shows they watch early in the morning and late at night. Even during the prime time hours, the numbers are skewed due to lack of participation.

The VNU claims to have countered this problem with the recent introduction of their electronic meter system. The meter requires all household viewers to log in using a remote control when the television turns on, and asks for verification that the same people are watching every 40 minutes.

While is a much simpler process, this system presents a new problem: lack of honesty on the part of the viewer. As a former participant in the "e-meter" Nielson study, I can verify the claims against the system (as I am as guilty as any participant in viewing dishonesty).

The viewer is given the option to log in up to seven guest viewers on one television. If one wants to boost the ratings of their favorite program, they simply tell the meter that several other viewers are watching, awarding the program tens of thousands of viewers who may not have been watching.

The ratings also lack demographic accuracy. Hispanic viewers make up almost 13 percent of the American population, yet the Nielson sample is made of only 11 percent Hispanic households.

Upper-class households are also severely under represented. One Nielson technician once told me that it is difficult to find participants in wealthy suburban areas, like Mequon, WI, as the $100 check given to viewers every six months does not appeal to them. These discrepancies in demographic representation skews the study's finding even further.

All of these flaws make for a lot of problems in the television industry. It is likely that many programs are shown to have a great deal more viewers than they actually do. This causes advertisers to put their support behind shows that are not as popular as they may seem.

While this may be good news for Jim Belushi and his uninspired, family friendly sitcom, it is insanely frustrating for fans of critically acclaimed programs, like "Arrested Development", that may have been cancelled due to inaccurate figures.

Those behind the Nielsen Ratings have the noblest intentions, but it is time to find a new way to monitor viewers. The age of digital cable may be the answer to all of these problems.

Digital cable allows for two-way communication between the customer and cable company. As the number of households with this service increases, it is hypothetically possible to record the viewing habits of a wider sample of viewers (with the consumer's approval, of course).

Individual shows have also attempted to more accurately discover the size of their audiences as well. "American Idol" asks fans to vote on their favorite contestants through text messaging, telephone polls and Internet voting, while the Sci-Fi Channel uses online surveys to gather viewer input on new shows.

The Nielsen Ratings are plagued with problems that the VNU cannot deny (although they try). It is time that someone took a stand and introduced a new system to bring television out of the dark ages and into a new period of enlightenment.

.... Of course you must take this article with a grain of salt, just like the Claims of Neilson!

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