Nielsen said its local television ratings combining big data from set-top boxes and smart TVs with viewer panels will become its local ratings currency in all markets starting in January.
“Clients will be able to start using Big Data + Panel in Local for transactions from January 2 forward,” Nielsen said in a letter to customers. “Based on industry feedback and feasibility, this will be a currency changeover without a parallel transaction period.”
With increasing fragmentation and the shift to streaming, small panel sizes have made it difficult for local stations and cable operators, competing with digital advertising, to offer detailed and granular information on viewers.
While Nielsen is facing challenges in national audience measurement from new rivals that base their viewership information on big data, the local market has been more fraught.
Some broadcasters, like E.W. Scripps, now rely exclusively on data from Nielsen rival Comscore for local ratings. (Scripps uses Nielsen for its national networks.)
In its letter to clients, Nielsen said its customers will be permitted to use Big Data + Panel in Local for transactions.
Nielsen’s Panel-Only NLTV data stream will be available only for research and analysis.
“We understand that a currency change can cause disruption in the media buying and selling process,“ Nielsen said. “To ensure you have ample time and information to prepare for the currency change in Local, Big Data + Panel impact data is now available for planning and audience estimates to support Q1 2025 negotiations effective immediately. Nielsen’s guidance for post-buy analyses for Q3 and Q4 2024 will remain Panel-Only data, as utilizing consistent methodologies for buy and post-buy analyses is critical for buyers and sellers.
Criticism of Nielsen intensified during the pandemic when COVID-19 prevented Nielsen staffers from visiting homes to maintain the quality of its viewer panel. As a result, fewer homes were in-tab, or producing usable data.
Nielsen’s accreditation from the Media Rating Council was suspended, meaning the agency had questions about Nielsen's methodology and its ability to provide reliable data.
Nielsen regained the accreditation for its old national ratings system based on its panel of about 40,000 metered homes. Nielsen’s system for adding big data to its panel data is being reviewed by the MRC. Its panel-based local ratings system has not regained its accreditation.
In March, Comscore’s system for measuring national and local household-level TV viewing was accredited by the MRC.
