american households

1 Million Fewer American Households Watched TV Last Year

Source: http://www.businessinsider.com/1-million-fewer-american-households-watched-tv-last-year-2013-2

Nielsen last week took a symbolic step toward helping the biz monetize TV viewing done via the Internet. But reaction to the ratings service’s decision to add Internet-connected TV sets to its formal definition of a “TV household” was muted among execs because it addresses only part of the vexing measurement challenges facing traditional TV nets.

Nielsen had been grappling with adjusting the definition in order to count homes that only receive programming via broadband connections as part of the universe of TV homes. The decision unveiled to TV and advertising execs on Thursday had been expected (Daily Variety, Jan. 10).

New definition doesn’t encompass homes where viewers only receive TV via tablets and smartphones.

Underscoring the shift in behavior, Nielsen’s estimate of the number of U.S. TV households has dropped in recent years, sliding from 115.9 million in 2011 to 114.6 million in 2012.

And some can be attributed to cord-cutting and “cord nevers,” or the rise in the number of younger viewers who rely on Internet-delivered sources and have never subscribed to cable, satellite or telco service.

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Tuesday, February 26th, 2013 news No Comments

1 Million Fewer American Households Watched TV Last Year

Source: http://www.businessinsider.com/1-million-fewer-american-households-watched-tv-last-year-2013-2

tv girl shoes

Nielsen last week took a symbolic step toward helping the biz monetize TV viewing done via the Internet. But reaction to the ratings service’s decision to add Internet-connected TV sets to its formal definition of a “TV household” was muted among execs because it addresses only part of the vexing measurement challenges facing traditional TV nets.

Nielsen had been grappling with adjusting the definition in order to count homes that only receive programming via broadband connections as part of the universe of TV homes. The decision unveiled to TV and advertising execs on Thursday had been expected (Daily Variety, Jan. 10).

New definition doesn’t encompass homes where viewers only receive TV via tablets and smartphones. The growth of viewing on tablets is seen as a big driver of second-screen multi-tasking activities surrounding TV shows, particularly among younger viewers. Not being able to capture the viewing among auds who are highly engaged with programming is frustrating to bizzers.

There’s also the issue of how to count viewing done via VOD and Web streaming platforms where the program’s commercial load does not match up with the spots aired during the linear telecast. As such, the industry’s goal of achieving an omnibus number that captures how many people watch a particular program over a given time frame (and there’s even a healthy debate about the best time parameters) remains far out of reach, for now.

Underscoring the shift in behavior, Nielsen’s estimate of the number of U.S. TV households has dropped in recent years, sliding from 115.9 million in 2011 to 114.6 million in 2012. Some of the drop can be attributed to the disruption of the broadcast biz’s transition to all-digital signals in 2009, which left behind a small percentage o! f Americ ans with older TV sets.

And some can be attributed to cord-cutting and “cord nevers,” or the rise in the number of younger viewers who rely on Internet-delivered sources and have never subscribed to cable, satellite or telco service.

Regardless of the reason, the decline in the TV household universe estimate is alarming for industryites, especially amid other reports that many Americans are watching more TV than ever before precisely because there are so many options for viewing.

The number of homes that will be added to the total TV universe under the new definition, to take effect in the 2013-14 season, is less than 1%. In discussions with network execs and Madison Avenue, Nielsen characterized the definition shift for fall 2013 as a first step. The company that provides the ratings that are the currency of ad-supported TV is clearly continuing to feel the pressure to crack the multiplatform-measurement conundrum.

“On the path to capturing all viewing in all homes, this foundational change addresses the lion’s share of viewing, in effect including any home with a TV that can receive video via an external source,” said Pat McDonough, Nielsen’s senior veep of insights and analysis.

(Andrew Wallenstein contributed to this report.)

Click here for more television news on Variety.com.

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Tuesday, February 26th, 2013 news No Comments

‘99% Of Sales Come From People Who Don’t Interact With Ads’

Source: http://www.businessinsider.com/facebook-99-of-sales-come-from-people-who-dont-interact-with-ads-2012-10

facebook money

Facebook is trying to close the loop between ad exposure on the social network and real-life buying habits. 

For years, it has been difficult to prove that someone seeing an ad on Facebook (or anywhere else for that matter) became more likely to buy the product.

Brad Smallwood, Facebook’s director of Monetization Analytics, expanded on what the social network’s new partnership with Datalogix means for marketers at the IAB Mixx Conference during Advertising Week.

The partnership will allow Facebook clients to match user data with Datalogix sales data, and draw conclusions about whether ads on Facebook actually increased purchases. (Datalogix purchased data on 70 million American households.)

“The outcomes that happen in the grocery store, at the car dealership,” Smallwood said of the initiative that “for the first time ever that draws that elusive straight line from ad exposure to purchase.”

One overall takeaway from the data — which Smallwood said doesn’t identify consumers by name — is clear: Unless you’re dealing with a specific type of campaign (i.e. direct online sales) the answer isn’t direct response or clicks.

According to Smallwood, “99 percent of sales come from people who don’t interact with ads. They consume the message and then when they go to the store they purchase.”

Other important takeaways include:

  • Of Facebook’s study that measured 50 campaigns, 70 percent saw a 3x greater return on ad spend, and 49 percent saw a 5x or greater return on ad spend.
  • “Reach is a crucial driver,” Smallwood! said. A nd digital campaigns that managed to find the proper reach were 70 percent more effective at driving purchases than ROI.
  • Smallwood said that marketers see a 40 percent increase in ROI by finding the “optimal frequency point.” He compared finding the frequency “sweet spot” in social to other platforms: “In TV you don’t want to send 50 impressions to one person, but you also don’t want to send one.”

Although some privacy groups are asking the FTC to investigate whether this partnership violates consumers’ privacy, Smallwood portrayed the new initiative as a “move away from the models that don’t maximize.”

“We at Facebook are dedicated to help you understand stuff like that.”

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Monday, October 1st, 2012 news No Comments

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