Nielsen TV Ratings Essay

1271 Words 6 Pages
The viewership data that Nielsen’s develops in important in determining how much advertisers pay to place their ads on TV. What are the advantages and disadvantages of the system? Are there alternative systems that might work better? Explain.
Disadvantages of the System
• It uses a very small target audience from various demographics to compile information using until recently manual forms and lately electronic meters. Both methods to record information are subject to mistakes and forgetfulness.
• It falls behind technological advances, not considering other devices and technologies people use to watch TV, for example: computers, iPods, portable TVs, and media players.
• It also does not consider university students who live away
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• The use of electronic meters reduces most common mistakes making information more accurate.
• Advertisers and TV producers rely on this data to address different demographics more accurately.
• It is the most widely used method to measure ratings used in the USA and Canada giving Nielsen virtually a great competitive advantage in this segment of the market.
• It provides information about demographics allowing better usage of collected statistics.

Systems that Could Work Better
From available technology to things that would be seen as a futuristic approach and with traits of science fiction, we can propose other methods to measure audience that could do a better job than the traditional methods, including the PPM method used in Montreal:
1. The use of computer tracking software to track cable, satellite and TV capable devices’ usage:
The software will be on a box similar to Nielsen’s meters, with the difference that they use a single point of entry to capture data from different devices, including radio and the Internet. The company producing this device would be in charge to produce statistical information about what shows are being watched, the number of times during shows the channel was changed, and other useful information.
Disadvantages: It would not ask who was watching what, it would simply assume it is all of the reported number of people living in a house and that they watch the media of hours they say they

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