Nielsen Warns Clients Of Lower PPM In-Tabs

[davideduardo]

Nielsen Warns Clients Of Lower PPM In-Tabs Due To Supply Chain Challenges.​

"Supply chain shortages that have impacted everything from computer chips to lumber and plastics are taking their toll on an unexpected industry: media measurement. Nielsen has informed clients that ongoing global supply chain issues related to the COVID-19 pandemic will impact future shipments of PPM devices. And that is expected to affect the number of new PPM panelists it is able to recruit for its ratings reports."

Nielsen Warns Clients Of Lower PPM In-Tabs Due To Supply Chain Challenges.

Supply chain shortages that have impacted everything from computer chips to lumber and plastics are taking their toll on an unexpected industry: media measurement. Nielsen has informed clients that ongoing

www.insideradio.com

"In-Tab" is ratings-speak for the number of people actually carrying a PPM and whose data returns are validated and, thus, are included in ratings tabulations.

 

[Kelly A]

Totally could see that one coming. Nielsen runs on the ragged edge of profitability anyway. COVID lock-down's now followed by lack of PPM devices, could put them that much closer to circling the proverbial drain.

 

[boombox4]

If Nielsen goes down, what will the radio industry use for ratings?

 

[davideduardo]

If Nielsen goes down, what will the radio industry use for ratings?

Nielsen is actively developing cross-platform measurement that will include audio and video and based on some form of the original PPM technology of encoding. The acquisition of that tech was why Nielsen bought Arbitron and it's the key to future qualitative measurement.

While streams can be measured in users and minutes, there is no reliable streaming measurement of who is listening as most home, workplace and other location streams measure only connections and not "who" is listening or viewing.

Most homes, hotels, businesses have wi-fi, but the connections are shared. The challenge is to identify who uses what. At the moment, Nielsen leads in this. But there is no reason to think that any of the financially endowed tech companies could not invade the measurement space.

 

[192khz]

Going off on a tangent but couldn’t Neilsen make an app to replace the actual ppm?

 

[Kelly A]

Going off on a tangent but couldn’t Neilsen make an app to replace the actual ppm?

Answer: Absolutely! I came up with one over ten years ago. I believe the concern at the time, and made a valid point; was Arbitron/Nielsen couldn't manage quality control over a device that does many things. Also, the question already loomed as to whether the data could be manipulated if out of control of the mothership.

 

[davideduardo]

Answer: Absolutely! I came up with one over ten years ago. I believe the concern at the time, and made a valid point; was Arbitron/Nielsen couldn't manage quality control over a device that does many things. Also, the question already loomed as to whether the data could be manipulated if out of control of the mothership.

There was a great degree of testing using various manufacturer's cell phones, and it was found that the range of sensitivity varied in extremes, particularly since most have background noise suppression which would often blanket any radio listening in the background. At one point, the Media Ratings Council weighed in to say that unless all devices could detect equally, it would be impossible to certify ratings results based on an extreme variable.

Arbitron had a way of using cell phones well before Smartphones were introduced. But it required having all participants use their single model phone, and they found huge consumer resistance to surrendering their favorite phone.

Further, there was concern that many people kept cell phones in purses, pockets and thick cases, further damaging or impeding their ability to detect radio listening.

 

[davideduardo]

Nielsen runs on the ragged edge of profitability anyway.

Yet investment analysts give about a quarter "buy" and half "hold" to Nielsen shares, with just a quarter in "sell" recommendations. They are profitable and pay a dividend. To quote, "The current consensus among 13 polled investment analysts is to Buy stock in Nielsen Holdings PLC. This rating has held steady since January, when it was unchanged from a Buy rating."

Here is an example: NLSN - Nielsen Holdings PLC Forecast - CNNMoney.com

I'd post my Morningstar analysis, but that is a copyright paid service and I should likely not do that.

 

[Kelly A]

Yet investment analysts give about a quarter "buy" and half "hold" to Nielsen shares, with just a quarter in "sell" recommendations. They are profitable and pay a dividend. To quote, "The current consensus among 13 polled investment analysts is to Buy stock in Nielsen Holdings PLC. This rating has held steady since January, when it was unchanged from a Buy rating."

Here is an example: NLSN - Nielsen Holdings PLC Forecast - CNNMoney.com

I'd post my Morningstar analysis, but that is a copyright paid service and I should likely not do that.

Those same analysist's proabably were saying same about Therenos. Beyond the smoke and mirrors, Nielsen is not diversified enough for the long game. Too fragile of a business model just tied to broadcast and streaming analytics.

 

[davideduardo]

Those same analysist's proabably were saying same about Therenos. Beyond the smoke and mirrors, Nielsen is not diversified enough for the long game. Too fragile of a business model just tied to broadcast and streaming analytics.

Nielsen has a much deeper operation than radio ratings. They are involved in all manner of consumer research in about 100 countries and has 44 thousand employees.

Right out of Wikipedia: "Nielsen is a global, independent measurement and data company for fast-moving consumer goods, consumer behavior, and media. With a presence in more than 100 countries and services covering more than 90% of the globe's GDP and population, Nielsen provides clients with data about what consumers watch (programming, advertising) and what they buy (categories, brands, products) on a global and local basis and how those choices intersect."

Half of its operation researches consumer purchasing and preferences.

Nielsen Holdings - Wikipedia

en.wikipedia.org

 

[Kelly A]

Half of its operation researches consumer purchasing and preferences.

Nielsen Holdings - Wikipedia

en.wikipedia.org

And rely on subscribers for that data. Since the pandemic, many of their larger clients have cut back, taken their research in-house, or are relying on less expensive Internet analytics rather than pay Nielsen's rates. On the broadcast and cable side; interruptions like pandemic and supply chain issues are causing more groups to rethink the cost of paying Nielsen for potentially incomplete or delayed data. In turn, many are trying to renegotiate what services they continue to get. It's not Nielsen's fault necessarily, but over the years, including taking on Arbitron, they've not prepared themselves for changes in the markets and businesses they serve. As you point out in numbers, one could argue Nielsen is too FTE-heavy, given their business model. Just because you have 44,000 employees, doesn't mean you're doing well.