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Nielsen Media Research International Background and Experience in TAM

New York, US, December 2005: This section reflects the history and experience of the Nielsen Media Research International from its origin until the date that the joint venture, AGB Nielsen Media Research, was formed.

Nielsen Media Research is active in 38 countries, offering television and radio audience measurement, print readership and customised media research services. Nielsen Media Research also provides competitive advertising information services in 30 markets worldwide. Through a network of affiliates, coverage is extended to more than 70 countries, representing 85% of the world’s advertising spending through Nielsen’s Adex International service. In addition, Nielsen collects Internet usage and advertising information through Nielsen//NetRatings. More information is available at www.nielsenmedia.com.

In the United States, Nielsen’s national peoplemeter service provides audience estimates for all national program sources, including broadcast networks, cable networks, Spanish language networks, and national syndicators. Local ratings estimates are produced in 210 television markets for television stations, regional cable networks, multi-channel platform operators (MSOs), cable interconnects, and Spanish language stations. The local audience measurements include peoplemeter services in the 10 largest markets (by 2006) and electronic metered services in another 47 cities.

Nielsen Media Research is part of The Nielsen Company (formerly known as VNU Group B.V.), a global leader in information services for the media and entertainment industries. The Group serves the information and marketing needs of television and radio broadcasters, advertisers, agencies, media planners, music companies, publishers, motion-picture studios, distributors and exhibitors, and the Internet industry. The Nielsen Company is active in more than 100 countries worldwide, employs approximately 40,000 people. For more information, visit www.nielsen.com.

To offer the most comprehensive Television Audience Measurement solutions, Nielsen Media Research invests significantly in new technology. The company holds over 300 patents worldwide and spends over $20m each year on research and development. At the Global Technology and Information Center in Florida, USA, over 70 engineers, technicians, and support staff are allocated to more than 15 different projects related to advancing the company’s technology portfolio, measuring new television devices and reducing the cost of metering systems.

As the industry leader, Nielsen constantly works to set the highest standards in the quality and value of services, and in the passion and integrity that the company’s people bring to helping clients succeed.

Nielsen TAM In The United States

Nielsen Media Research operates the world’s largest TAM operation in the US, and has been measuring television longer than any other company.

Arthur C. Nielsen, Sr, founded the Nielsen Company in 1923, launched the first metered radio ratings service in 1942 and began its US Television Audience Measurement service in 1950. As the television industry grew to encompass new technologies, like video cassette recorders, cable, satellite and digital distribution technologies, Nielsen developed innovative solutions to capture the new viewing behaviours. One of the key developments was the invention of the Active/Passive system to ensure measurement of all broadcasts, even without the permission of cable or satellite platform operators.

Nielsen currently measures 109 million U.S. homes and provides services for 7 national broadcast networks, 3 Hispanic networks, 70 cable networks, over 100 syndicators, 300 public television affiliates, 150+ advertisers and advertising agencies, 1,000 local television stations plus 1,500 local advertising agencies and over 10,000 cable head ends. The company has a range of specific services customised to the needs of national broadcasters, national Hispanic broadcasters, and offers local market ratings services in 210 designated market areas (local markets). Since 2002, Nielsen Media Research has been increasing the national peoplemeter panel of 5,100 homes to 12,000 homes and has committed to measuring 10 major markets – like New York, Chicago, Los Angeles, Boston and San Francisco - with peoplemeters. The national panel and local peoplemeter market expansion will be complete by 2006.

In addition to the national and local peoplemeter markets, Nielsen Media Research also measures another 46 local markets electronically with set-meters, for a total of more than 30,000 metered homes across the U.S. For markets not currently measured with peoplemeters, Nielsen sends out more than 1,000,000 TV diary surveys each year. The company also has a range of custom measurement services, including dedicated panels for Hispanic broadcasters in 19 markets and a custom panel of 10,000 TiVo homes to establish the effect of personal video recorders on viewer behaviour. In 2004, Nielsen announced plans to work with Arbitron and Procter & Gamble to establish a single-source, multi-media service using consumer scanning technology and personal peoplemeters.

Nielsen TAM Internationally

As well as the 30,000+ homes installed in the US, Nielsen Media Research has an additional 20,000 peoplemeter homes installed across 30 countries, including 12 countries operated by IBOPE, Nielsen’s joint venture partner in Latin America.

Europe & Africa

In Europe, Nielsen Media Research measures the Irish and Swedish television industries, having renewed industry contracts for both those countries in the last two years. In Ireland, Nielsen operates the world’s first implementation of the Active/Passive TAM system. This solution has provided the industry continual access to accurate, channel level ratings as analogue and digital multi-channel operators (cable and satellite) have entered the market. Specific benefits include the ability of the industry to have a measurement of viewership on a satellite and cable platforms (analogue and digital) when set-top box solutions did not exist or were not permitted by the platform operator. Nielsen Media Research also has a successful joint venture measuring television in Finland with Finnpanel and a single-source operation in Germany.

In South Africa, Nielsen Media Research (or related companies) has measured television using peoplemeters since the 1980s. The current operation has had its contract with the industry organisation South African Advertising Research Foundation extended three times over the last fifteen years and has developed innovative solutions to measure digital broadcasters and remote communities in co-operation with the industry.

The Americas

Nielsen Media Research provides a comprehensive service in the United States, while the company’s joint venture partner IBOPE provides peoplemeter systems through the vast majority of Latin America. In Canada, Nielsen Media Research operates both national and local peoplemeter services. Specific achievements include the implementation of a measurement solution to correctly identify simulcast broadcasts (where program content is identical in both Canada and the US but commercial content is different). Other recent innovations in Canada include the launch of a syndicated single-source service and the development of partnerships with key clients. In the partnership, Nielsen and the client specified a package of information and client service that provided greater opportunity for a profitable return on their investment in audience research.

Asia-Pacific

In Asia-Pacific, the company’s TAM services form a very broad footprint, ranging from the southern tip of New Zealand to the north of China to the western reaches of India. The territory, covering over one third of the world’s population, includes both emerging and highly developed economies, and demands Television Audience Measurement solutions from the relatively simple to the highly sophisticated.

Nielsen Media Research is the partner of choice throughout the Asia-Pacific, with the company selected by industry groups as the preferred TAM supplier in New Zealand, Taiwan, Thailand and Malaysia since 2002. In addition to working with industry bodies, Nielsen continues to invest in developing its Asia-Pacific TAM services and technological solutions. For example, Nielsen Media Research is undertaking a major expansion of its TAM service in China, eventually measuring thirteen major markets with 4,100 peoplemeters and an additional 72 cities and seventeen provinces with one million television diaries. In other examples of Nielsen’s commitment to continual improvement, in the last two years the company has delivered set-top box solutions for measuring digital satellite and cable operators in Hong Kong, Singapore, New Zealand and other Asia-Pacific countries.

These are just a few examples of Nielsen Media Research’s philosophy of collaboration, investment and continual service improvement. These corporate values are fundamental to the company’s operation and to the success of our clients in rapidly changing times.