Independent Broadcasters Association (IBA) Issues Statement On New Nielsen Policy; Nielsen Responds

Issues Statement On New Nielsen Policy

The INDEPENDENT BROADCASTERS ASSOCIATION (IBA) is speaking out on the new NIELSEN ratings policy. Here is the statement from IBA Pres./Exec. Dir. RON STONE, which challenges recent decisions from NIELSEN about data and who can see it. It also goes on to speak to a collaboration with EASTLAN RATINGS for a new, competing audio ratings product. And, NIELSEN has responded to a request for comment.

IBA states: Many radio stations spend significant money supporting the NIELSEN services in their markets and feel they should have never been subjected to carrying the load while others benefited without any financial contribution. The enormous fees that radio stations have been subjected to should have been addressed long ago. The outdated system of ratings gathering should have also been addressed. The idea that we are still relying on a system that has never adapted to a digital world by itself makes no sense. One thing is for certain, this new policy will not solve the problem, and has created a giant need for an alternative service. The time has come for a disrupter product to emerge.

Is this new NIELSEN policy “fair to all concerned”? Radio stations more and more cannot justify the high cost of NIELSEN ratings. In a world where data collection has never been easier or less expensive, NIELSEN failed to adapt and chose instead to continue measuring with outdated and unreliable methods.

• How will this improve audio delivery measurement for those that do depend on it for decisions, particularly, agencies?
• Will existing subscribers to NIELSEN see a serious reduction in their cost for the ratings if another radio group wants to sign up to avoid being “delisted” in a market?
• Will NIELSEN create a pricing model fair to all and walk away from an unfair system based on the estimated ratings when a station signs up? The work is the same no matter the estimated ratings. Right?
• According to NIELSEN, “any agency that subscribes to the RESPONDENT LEVEL DATA (aka TAPSCAN) has the full market view still, subscribers and non-subscribers inclusive. The new policy only impacts the SUMMARY DATA SET (SDS) files.” Any agency could “enhance” their service with TAPSCAN and avoid any disruption from this new policy, assuming agencies want the data of all stations. Would this lead to new revenue for NIELSEN and perhaps create an opportunity to reduce the fees stations pay?

Many subscribing stations have asked for this policy for years, as they have been paying for the services where competitors do not. Why implement this now when every independent radio station is doing everything they can just to survive and so few broadcasters will benefit from it?

Radio stations must reduce their dependency on outside companies that feed off our fears that we need them more than they need us. Violent swings in ratings from one book to the next, something many if not all radio stations have experienced, speaks volumes about reliability. We all know listening habits of people do not change as radically as the ratings can indicate

The IBA is currently working with software engineers and is in conversations with EASTLAN RATINGS to design a new digital ratings service. A service that will deliver in real time and will eliminate the need for a printed diary or additional devices. It will combine listening from both terrestrial and streaming for more accurate total listening measurement. No station will be excluded from measurement.

NEILSEN has responded to a request for comment, stating:

"In an effort to provide greater service to our existing clients, NIELSEN is taking steps to maximize our value for broadcast clients and more clearly differentiate between those stations that subscribe versus those that do not.  We call this NIELSEN AUDIO’s 'Subscriber First Reporting Policy'.  

"Previously, Total Line Reporting, Reporting of Internet Streams/HD stations, and home-to-metro reporting became subscriber benefits. Starting with the JANUARY 2021 PPM Monthly report, only subscribing stations will be reported in the Summary Data Set used by SOFTWARE SOLUTIONS PROVIDERS (SSPs) in their media buying software.  This additional step will help ensure that only subscribing stations derive the benefits of being reported in the SDS.

"Like most businesses, NIELSEN continually evaluates steps to maximize efficiency and drive quality initiatives especially in light of today’s economic landscape.  As part of that ongoing effort we made the decision to close nine markets following the SPRING survey. We continue to look for other ways to help fuel investment in our measurement services and ongoing improvements such as the recently announced headphone adjustment, outlier mitigation, proactive monitoring, and the NIELSEN AUDIO SOFTWARE encoder. 

"This additional step in our subscriber first policy is an efficiency-minded, business-driven decision designed to encourage non-subscribing stations to invest in the service to become subscribers. Notably, minority-owned broadcasters (Black, Hispanic, Asian, Female, and non-profit) with revenue less than $7M and non-profit stations either publicly owned or holding 501(c)(3) tax status will be reported regardless of subscription status."

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