Last week, TV measurement hit a long-awaited milestone when Nielsen announced that it will stop offering panel-only ratings as a standalone currency offering later this year.
Panel-based data will still be incorporated into Nielsen’s combined Big Data + Panel offering, which sits in the Nielsen ONE measurement platform and includes larger data sets from set-top boxes and smart TVs. The combined data offering, which is Nielsen’s endorsed currency for this year’s upfront season, gained Media Rating Council (MRC) accreditation in January.
The MRC’s latest stamp of approval is part of Nielsen’s quest to regain the industry’s trust in its standards after it first lost accreditation for national and local ratings due to its alleged undercounting of audiences during the pandemic in 2021. Nielsen regained accreditation for national TV ratings last April and now has accreditation for Big Data + Panel. (It still lacks accreditation for local ratings.)
In the meantime, Nielsen competitors like Comscore, VideoAmp and iSpot gained some footing as alternative currencies.
“The bigger challenge for Nielsen isn’t just accreditation; it’s the increased pressure from competitors offering differentiated solutions,” said Rachel Baker, SVP and head of investments and partnerships at Rain the Growth Agency.
Ad buyers agree that Nielsen’s decision to pivot from panel-only ratings is a step in the right direction for TV ad measurement. But some also suggest it may be too late for Nielsen to recover the ground it ceded to competitors over the past few years. Nielsen could see “a steady erosion of market share driven by cost considerations and evolving buyer preferences,” Baker said.
Paramount, for example, recently let its contract with Nielsen expire because it considers the costs too high. Instead, the network leans on VideoAmp.
AdExchanger asked the experts: How will the recent changes in Nielsen’s measurement offerings affect ad buying decisions – including the role of panels – this year?
- Jay Friedman, CEO, Goodway Group
- Artem Peplov, VP of Analytics, Rain the Growth Agency
- Nick Perez, Media Director, Exverus Media
Jay Friedman
Nielsen, like any good business, is cannibalizing itself to achieve greater relevance for its future. Buyers that still cling to an antiquated measurement system will be forced to adapt, which will boost competition among video currency providers and modernize the way media buyers think about video overall.
Artem Peplov
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The shift to big data as Nielsen’s primary data set rather than legacy panels is about five years overdue. Panel data will now serve as a supplement to the much larger and more robust data sets from set-top boxes and automatic content recognition sources. The role of panels in Nielsen ONE will likely shrink over time, and I wouldn’t be surprised if they’re eventually phased out entirely.
That being said, we are already operating in a multi-currency world, with alternative measurement products gaining traction. Media companies are trying to work with whichever solutions their clients think make the most sense, and there’s a lot of competition happening in the market.
Nick Perez
I think this news is a step in the right direction for Nielsen. There’s an appetite in the industry to find new ways of measuring TV, especially because the TV space is only getting more fragmented.
I don’t think Nielsen’s decision to stop offering panel-only currency later this year will impact any buying strategies during the upfront season, but it will likely reinstate faith in Nielsen’s ability to effectively measure the TV space.
I also think this news will be positively received by advertisers who have been waiting for a more modern, updated way of measuring TV.
Answers have been lightly edited and condensed.
