Our meters and technology can also identify who is watching, as well as when, including time-shifted viewing—the viewing of recorded programming via DVR or video on demand. Nielsen also captures viewing that occurs on other screens, such as mobile, tablet, and computer—delivering to network clients a view of their total audience. And unlike measurement that relies solely on big data sources, our measurement ensures representative coverage across demographics because our panels which form the basis for our Nielsen Families ensure that we capture person-level viewing behavior, not just set top box level viewing.
Being able to measure in a way that fairly represents all races, ages, ethnicities and behaviors is crucial for the industry to transact and analyze with confidence. This is a fairly small sampling, considering US households with televisions for the viewing season was estimated at almost million, but they choose people based on their ability to represent varied populations.
For example, Nielsen might choose a household with adults and children of multiple genders and age groups to better represent more viewers. Every time someone in a Nielsen household turns on a television, he or she indicates which person it is and the box tracks how long the person watches a show. Each member of a household has his or her viewing habits recorded individually, through indicating who is watching the television at any given time.
If multiple people, including guests, view a program, each one enters information about his or her age and gender into the box so that the viewing habits of each person can be tracked. This viewer-specific data sets the information Nielsen records apart from data gathered by a regular cable television box.
Nielsen turns this sample of viewers into a percentage representing total viewership. This would indicate a rating of 10 points, and networks rank their shows based on the number of viewers they have each week. More important than just the ratings of a show are certain demographics and "commercial ratings" for a program.
Since the Nielsen box tracks viewing habits by age and gender, companies can specifically target certain groups, such as people between the ages of This age range tends to buy more products than other ages, so it has become the most important demographic to many advertisers.
Networks can charge more money to advertisers placing commercials in a show with high numbers of viewers in this demographic, even if the show's overall ratings are lower than another program more popular among older or younger audiences.
Considering the trend toward more streaming on phones, laptops, and other devices, traditional methodologies for TV ratings could quickly become outdated. Still, media research is worth billions of dollars. Advertisers pay to air their commercials on TV programs using rates that are based on Nielsen's data.
Programmers also use Nielsen's data to decide which shows to keep and which to cancel. The technology may be scrambling to keep up with the rapidly changing landscape, but the industry continues to rely on TV ratings for decision-making purposes and bragging rights.
Sign up for our Newsletter! Mobile Newsletter banner close. Mobile Newsletter chat close. Mobile Newsletter chat dots. Mobile Newsletter chat avatar. Mobile Newsletter chat subscribe. TV Industry. How Do Television Ratings Work? A family watches a soccer match on television. Take a look at TV evolution pictures to see popular shows and TV styles through the decades. Nielsen uses a technique called statistical sampling to rate the shows. Nielsen creates a "sample audience" and then counts how many in that audience view each program.
Nielsen then extrapolates from the sample and estimates the number of viewers in the entire population watching the show.
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