Nielsen Ratings - 60% of DVR Viewers Not Watching Commericals

July 5th 2007 - Product Placement News

Nielsen Media Research and their team of 10,000 households have launched its commercial ratings service - just in time to help brands negotiate rates as part of the current upfront season.

Nielsen's Press Release is filled with a bunch of numbers, certain to confuse the average CMO and even the experienced media buyer. The 'New' six "streams" of viewing data (backdated to April 30) will cove live, live + same day and live + 1, 2, 3, or 7 day viewing.

Thank god the networks have researchers to explain this data. The LA Times is quoting David Poltrack, CBS chief research officer as stating:

"The average commercial is seen by about 40% of people who play shows back on DVR."

That still leaves 60% of DVR television viewers not watching commercials. Neilsen does state that within DVR households, 58% of broadcast primetime viewing still takes place live, with 42% occurring through DVR playback.

Another new finding: 95% of recorded programs are viewed within three days of the show's initial airing.

Networks are hopeful that the method of tracking viewership for three days after a show's airing could become the standard adopted by the industry to account for the people who record programs and watch them later.

The Neilsen "People Meter"
How good is Neilsen's measurement system? Neilsen measures viewers through "people meters" installed in 10,000 homes throughout the country. The company 'asks' people in the sample households to log out of the system when they leave the room or are no longer watching the program.

The Upfront Effect
Last year, advertisers committed $8.75 billion for network prime-time commercial spots during the "upfront" sales season.

Early industry sources expected that figure to be lower this year, but with Branded Entertainment experts like Ben Silverman at the helm of NBC and independent studio Buzznation, we expect to see more integration deals over the next 24 months with an overall increase in advertising revenue.