Nielsen TV Ratings

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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 from their homes. They are a very important group of people that watch as much or more TV as other groups, and who currently are being counted like they were still at home not watching TV at all.

• It concentrates efforts in households only and does not count viewing habits of other venues where people watch TV too, like bars, offices, hotels, prisons, and several other public venues.

• Cable companies are unhappy with the system and they do not think Nielsen accurately captures the number of people who watch cable TV.

• It also shows discrepancies between network and cable TV where readings showed remarkable contrasting results for the same program in two different channels.

• The compiled information comes from a very small portion of the population in the USA and Canada, which could lead to bias responses as these people know they are being measured.

Advantages of the System

• The Nielsen system of tracking television viewing habits is advantageous to sponsors because they can take ...

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...nt in retribution and discounted health care insurance.

Disadvantages: It is a very intrusive method that could be hard for people willing to participate in this program. The promotional plan for this product needs to be very aggressive and convincing with a valid proof that the implant would not harm the brain or have side effects.

Advantages: It will pay customers for the time they watch TV, and will include discounts in (extended) health care insurance and monthly monitoring of the implant and its usability. The customers receiving statistics will contribute a percentage of their earnings with participating users. The information will be recorded without relying on any extra step or any kind of human interaction. The microchip will read the signals anywhere the person is and will record all kind of useful information for advertisers and TV producers.

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