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Showing posts with label Nielsen. Show all posts
Showing posts with label Nielsen. Show all posts

The Sked: Thou Shalt Not Appeal Directly to Nielsen Homes

Oprah Winfrey broke a cardinal rule of the Nielsen ratings game by appealing directly to Nielsen sample members to watch her struggling network.  As reported in the New York Times and elsewhere, Oprah tweeted Sunday night "Every 1 who can please turn to OWN especially if u have a Neilsen box" as she wrote about her interview program Oprah's Next Chapter.  Oprah promptly apologized and removed the offending tweet (presumably after a flurry of phone calls and emails from upset lawyers, executives and media relations professionals).  Nielsen has threatened to put an asterisk next to any rating for the telecast, notifying any advertiser or client of the circumstances.  The problem is the asterisk might fight for attention next to the "hash mark" that OWN receives in many time periods (a "<<" symbol Nielsen publishes when ratings fall below a 0.10 and are deemed statistically unreliable).   


Nielsen and other ratings measurement companies such as radio's Arbitron have longstanding policies against broadcasters directly addressing members of their research samples.  A network or program can advertise, promote and market all they want to a general audience, but a message targeted to sample members is strictly forbidden because it might distort normal behavior.  Some TV stations in small markets still measured by paper diaries go right up to the line by running announcements such as "You are watching WXYZ...write it down."  Even occasional local TV news stories about the ratings process raise concerns by Nielsen.   

At the extreme, "sample tampering" could occur if a broadcaster somehow identified Nielsen homes and communicated directly with them.  For that reason, the sample's identity (names, addresses, phone numbers, emails) is one of the best kept secrets in the world.  A fictional scheme to tamper with the ratings sample was the subject of Danny DeVito's directorial debut in The Ratings Game, a 1984 comedy produced for Showtime/ The Movie Channel and also starring Devito and Rhea Perlman.  (In the film, a disgruntled researcher at the ratings company falls in love with a schlocky producer, and she provides him with a list of people in the sample.  He gives away trips to a number of these families, moves his friends into their homes, and have them watch the stunningly bad and ethnically-stereotyped situation comedy The Goombas, making it a massive overnight hit.  Any parallels to the success of 2 Broke Girls is strictly coincidental.)


So what happened to Sunday's ratings for Oprah's Next Chapter?  The telecast at 9 pm did not crack the top 100 cable program list for the night on tvbythenumbers.com (generally a 0.3 rating or higher with Adults 18-49).  (When the actual rating, asterisk and all, is available, we will report it.)  But in the fourth quarter of 2011 in prime time, the struggling OWN channel averaged a lowly 0.07 rating with young adults (representing about 85,000 Adults 18-49 in an average minute), meriting the dreaded hash mark.  In its target sales demographic of Women 18-49, OWN averaged a 0.10 rating and 63,000 young women, about the same delivery as the National Geographic Channel (and just above the hash mark line).  That means in a typical moment in prime time, approximately five (yes, 5) women aged 18-49 in the Nielsen sample are watching OWN (5 out of the roughly 5,500 women 18-49 with Nielsen PeopleMeters in their home).  What are the odds that even one of the other 5,495 young women in the sample were following Oprah on Twitter at exactly the right moment (sometime around 9 pm Sunday when the tweet was posted) and then felt compelled to turn on the TV or change the channel to OWN (assuming they can find it)?  Those odds are for another post.  The point is, a broadcaster simply can't do something like that, even if the action had little to no chance actually lifting the ratings.  

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The Sked: The Skinny on the Nation's TV Markets

With all due respect to your geography class, the United States is really not made up of 50 states and the District of Columbia.  Readers of this website know it is a patchwork of 210 television markets, also known as Designated Market Areas (DMAs).  Each county in the nation is assigned to a DMA based on the residents’ viewing habits, and DMAs often cross state lines.    

Once a year Nielsen (which measures local in addition to national television ratings) estimates the size of each market, and this season they range from #1 New York (with 7,387,810 homes) all the way down to tiny #210 Glendive, Montana (with 4,180 homes).  Exactly in the middle is #105 Lincoln, Nebraska (with 280,310 homes).  With market size disparity like that, it is no surprise that:

Three in ten Americans live in the top 10 markets
Half live in the top 25 markets
Eight in ten live in the top 75 markets 

Why are TV markets important?  Knowing the size of markets and their growth rate is critical when analyzing national ratings, awarding or moving sports franchises, evaluating the performance of sporting events on television, developing strategies for political campaigns and advertising, and so on.  For example, if a network program is pre-empted in five local markets, it is critical to know which markets are not broadcasting a show.   

The Top 25.  The chart below lists the top 25 DMAs, displaying their size (the number of households with television in the area), growth (percent change over a ten-year period since 2001-02), and momentum (the change in market ranking in ten years).  Values in red are indications of slow growth, while values in blue indicate rapid growth.  Black values are average.

Dallas-Ft Worth (#5) has moved up two spots in the rankings in a decade, but the Big-D will have to ratchet up the growth even more to catch the much larger Philadelphia (extremely unlikely).  The top four markets are so large their ranking has not changed in decades despite very sluggish growth. 

TOP 25 TV MARKETS      2011-12    Growth   Ranking
                      Households  Since    Change
                      (millions)   2001    vs 2001
     1  New York         7.388     + 1%
     2  Los Angeles      5.570     + 5%
     3  Chicago          3.493     + 4%
     4  Philadelphia     2.993     + 7%
     5  Dallas           2.571     +17%      +2
     6  San Francisco    2.507     + 3%      -1
     7  Boston           2.380     + 3%      -1
     8  Washington DC    2.360     +11%
     9  Atlanta          2.293     +15%
    10  Houston          2.185     +19%      +1
    11  Detroit          1.843     - 2%      -1
    12  Seattle          1.812     +10%
    13  Phoenix          1.811     +18%      +3
    14  Tampa            1.788     +14%
    15  Minneapolis      1.722     + 9%      -2
    16  Miami            1.584     + 2%      -1
    17  Denver           1.549     +12%      +1
    18  Cleveland        1.514     + 0%      -1
    19  Orlando          1.465     +24%      +1
    20  Sacramento       1.389     +13%      -1
    21  St Louis         1.254     +10%      +1
    22  Portland         1.190     +11%      +1
    23  Pittsburgh       1.171     + 2%      -2
    24  Raleigh-Durham   1.143     +22%      +5
    25  Charlotte        1.141     +20%      +2


Further, Phoenix (#13) is not done growing.  A decade ago Phoenix was #16, and it could very soon be knocking on the door of the top 10 because it is bunched up against similar-sized markets like Seattle and Detroit.  In fact, the Detroit (#11) area has the dubious distinction of being the only top 50 market to decline in population in the last decade.

North Carolina is the other high growth area (although it gets much less attention than the Southwest).  Raleigh-Durham (#24) and Charlotte (#25) have busted into the top 25 (with Raleigh vaulting five places in ten years), and like Phoenix they are very close in size to the markets immediately above them.  They should be Top 20 markets in a few seasons.          


MID-SIZED MARKETS ON THE RISE.  In addition to the large-market growth stories, there are some spectacular examples from the rest of the top 75 markets.  Everyone would cite Las Vegas, which has risen from #51 ten years ago to #40 today, fueled by a 27% jump in market size over that period.  But an even bigger example is Ft. Myers-Naples, Florida, which has vaulted 14 places from #76 to #62 as a result of a 31% jump in the number of households in ten years.  Honorable mention goes to Austin (up seven places in the ranking and up 24%).  Here is a list of top gainers from markets 26-75 since 2001.



                         HHs MM   Growth   Rank Chg
    40  Las Vegas         .737     +27%      +11
    41  Harrisburg PA     .729     +18%      +5
    44  Albuquerque       .713     +17%      +4
    47  Austin            .687     +24%      +7
    50  Jacksonville FL   .670     +19%      +3
    60  Mobile-Pensacola  .528     +12%      +3
    62  Ft Myers-Naples   .504     +31%      +14
    70  Tucson            .442     +13%      +3
    73  Spokane           .427     +12%      +5

MID-SIZED MARKETS ON THE DECLINE.  On the flip side, some parts of the country stagnate or even drop in population (like Detroit).  The biggest loser in the mid-markets is New Orleans, which has tumbled nine spots on the ranking chart (from #43 to #52), sporting a 1% decline in population for the entire market since 2001.  Clearly, Hurricane Katrina was a huge reason for this exodus.  Without a category five hurricane or other natural calamity, Memphis dropped a similar eight spots (from #41 to #49), and hard scrabble Charleston, West Virginia declined a full 3% in population since 2001. 

                         HHs MM   Growth   Rank Chg
    27  Baltimore        1.097     + 7%      -3
    35  Cincinnati        .896     + 7%      -3
    42  Grand Rapids      .722     + 3%      -4
    49  Memphis           .670     + 2%      -8
    51  Buffalo           .645     + 5%      -4
    52  New Orleans       .644     - 1%      -9
    53  Providence        .620     + 3%      -4
    63  Dayton            .494     + 0%      -3
    65  Charleston WV     .465     - 3%      -4
    68  Flint-Saginaw     .452     + 0%      -4
    74  Toledo            .426     + 2%      -6

Read more about demographics and TV ratings here:  Factoids from Nielsen's "Universe Estimates" and Time Zones & Their Impact on Ratings and Programming.

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The Sked: Factoids from Nielsen's "Universe Estimates"


This season there are 289.7 million viewers living in 114.7 million TV households in the United States, as estimated by Nielsen.  If you believe these yearly estimates (and you must if you want to trust the ratings each morning), there are five million fewer people living in one million fewer homes than there were last season.  Don’t worry, you didn’t miss a natural disaster -- this kind of an adjustment can happen as actual Census data is analyzed each decade.  It basically means the US population is not growing nearly as fast as estimated since the last Census in 2000. 


Yes, the nation is aging – but this is ridiculous.  We all know the population is aging, but nothing puts the transformation into more perspective than the table below with key demographic groups.  Check out the growth rate in the 50-64 group, as the Baby Boom works its way out of the back-end of the 18-49 segment.  CBS's older-skewing programming strategy is looking better and better -- if they can convince Madison Avenue to expand their demo targets.  Click "read more" to see the details.

              2011-12     Change
      Age    Population   vs Five
             (millions)  Years Ago
      2-17      65.2      + 0.6%
     18-34      67.6      + 1.3%
     35-49      60.3      - 5.7% 
     50-64      57.2      +10.1%  
       65+      39.4      + 9.3%

     Total     289.7      + 2.2%
     18-49     127.9      - 2.1%
     25-54     120.7      - 1.5%

Diversity is real.  Nationally, over one-third of the population is an ethnic minority, with extraordinary growth rates (high double digits) for Hispanics and Asians.  Again, no surprise. But it is a curious footnote that the number of whites has declined almost 3% since 2006 (from over 194 million to under 189 million – there’s another missing five million people again).

Hispanics: 16.2% of population or 46.9 million (up 17% in five years)
African-Americans: 13.0% or 37.6 million (up 6%)
Asians: 5.6% or 16.2 million (up 19%)

How people get their TV.  For the first time, over 90% of the population gets their television signals through a wire or a dish.  Satellite is now in 30.0% of homes (up 7.4 percentage points in five years), while some form of wired cable is in 60.9% of TV homes (down 3.2 percentage points in five years).

But everyone doesn’t have a DVR…yet.  This season 43.3% of the population lives in a home with a DVR.  This has more than doubled in five years (20.2% had a DVR in 2006), but it doesn’t come close to “universal” penetration of things like DVD ownership (88.3% this season) or Internet access (82.0%). 

Yes, but there are people without Internet?  Strange as it may seem, there is a full 10% of the population that can be defined as Luddites.  This season 11.4% live in a home without a PC and another 6.6% have a PC that is not connected to the Internet.  And 9.6% of the population live in homes that still use rabbit ears or a rooftop antenna as there only means to watch television.  Well, we don’t have to worry about DVRs in these homes. 

What about the upscale audience?  About a quarter of the audience is defined by Nielsen as upscale: 25.8% of the population lives in homes with a combined yearly income of over $100,000 and 29.9% in a home headed by a college graduate.  Both figures are up versus five years ago -- $100K+ is up 4.7 percentage points and college grad is up 2.5 points.  Either this recession is not happening, or there is a lot of denial out there. 

The American Dream.  The median household income of the television universe is $60,000 this season, while 70.1% live in a household with a car (and 25.6% live in a home with two cars), 68.6% live in an owned house, and 51.6% live in a household with someone under 18. 

The most important measurement.  My favorite household characteristic in the Nielsen TV Universe Estimates is pet ownership.  Almost half of all households now own a dog (47.1% this year, up from 42.3% in 2006), while cat ownership is on the decline (27.3% this year, down from 30.3%).

So let’s review.  Five million people have disappeared in one year.  Five million whites have vanished in five years. There are more upscale viewers despite the most bruising recession since World War II, and dogs are clearly winning their age-old struggle against cats.  The most important to thing to remember is that these Universe Estimates are what Nielsen says they are, and the ratings are the ratings.  Basically, there is no choice.  Both buyers (advertisers and advertising agencies) and sellers of time (networks) accept the ratings as the “currency” of the business, despite any inherent or transitory methodological flaws.

On a somber note, Arthur C. Nielsen, Jr. died Monday.  Son of the company founder and World War II vet, Nielsen was responsible for getting the research company into television measurement in 1950.  He spearheaded the early use of mainframe computers after seeing their use in the War as an officer in the Corps of Engineers.  Bill Carter of the New York Times has a fine obit.

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