Nielsen Revamps TV Ratings

Nielsen is updating its TV ratings product to improve accuracy, with changes set to take effect on September 1. The updates include a new method for measuring co-viewing, which involves using wearable devices to capture audio from TV events, shows, and movies.

The company will also combine data from the U.S. Census' American Community Survey and the National Hispanic Enumeration Survey to better estimate Spanish-language viewers. Additionally, Nielsen will update its weighting process to combine panel and big data more effectively.

Nielsen CEO Karthik Rao stated that the company is 'relentless in our pursuit of delivering the most accurate measurement possible for our media and advertising clients'. The company has worked with clients to prepare them for the changes and has shared preview data with them. The Media Rating Council has overseen the updates.

## What's Changing The updates will include a change to the monthly snapshot of viewing across various platforms. Nielsen will use wearable devices to capture audio from TV events, shows, and movies for co-viewing measurement. The company will also update its household demographic assignment model (HDAM), a machine-learning tool that determines the makeup of households from big data providers.

## Why it Matters The changes are significant because they will provide a more accurate picture of TV viewing habits. With the rise of streaming, traditional TV viewing habits have changed, and Nielsen's updates aim to reflect this shift. The new methodology will allow for more passive measurement, which will create a more accurate picture of how many people are watching a given program. This, in turn, will help TV executives and advertisers better understand their audience and make more informed decisions.

The updates will also have implications for the advertising industry, as they will provide a more accurate measure of the size and attributes of video audiences. This will help underpin value and price in talks between advertisers and TV networks and streamers.

## What Happens Next The updates will take effect on September 1, and Nielsen has worked with clients to prepare them for the changes. The company has shared preview data with clients and has overseen the updates with the Media Rating Council. While the changes are expected to provide a more accurate picture of TV viewing habits, it remains to be seen how they will impact the industry as a whole.