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Nielsen Audio

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Nielsen Audio
TypeSubsidiary
IndustryMedia market (research)
FoundedWashington, D.C. (1949)
Headquarters
Columbia, Maryland
Area served
United States
Key people
Sean Creamer, CEO
ProductsRatings data
RevenueIncreaseUS$422.31 million(FY 2010)[1]
IncreaseUS$85.11 million (FY 2010)[1]
IncreaseUS$53.29 million (FY 2010)[1]
Total assetsIncreaseUS$238.96 million (FY 2010)[1]
Total equityIncreaseUS$126.81 million (FY 2010)[1]
OwnerThe Nielsen Company
Number of employees
1,625 (Dec 2011)[1]
Websitewww.nielsen.com/audio

Nielsen Audio (formerly Arbitron) is a consumer research company in the United States that collects listener data on radio broadcasting audiences. It was founded as the American Research Bureau by Jim Seiler in 1949 and became national by merging with Los Angeles-based Coffin, Cooper, and Clay in the early 1950s.[2] The company's initial business was the collection of broadcast television ratings.

The company changed its name to Arbitron in the mid‑1960s, the namesake of the Arbitron System, a centralized statistical computer with leased lines to viewers' homes to monitor their activity. Deployed in New York City, it gave instant ratings data on what people were watching. A reporting board lit up to indicate which homes were listening to which broadcasts.[3]

On December 18, 2012, The Nielsen Company announced that it would acquire Arbitron, its only competitor, for US$1.26 billion.[4][5] The acquisition closed on September 30, 2013, and the company was re-branded as Nielsen Audio. As a condition of the deal to allow a monopoly, Nielsen must license its ratings data and technology to a third party for eight years.[6]

Discover more about Nielsen Audio related topics

Marketing research

Marketing research

Marketing research is the systematic gathering, recording, and analysis of qualitative and quantitative data about issues relating to marketing products and services. The goal is to identify and assess how changing elements of the marketing mix impacts customer behavior.

Radio broadcasting

Radio broadcasting

Radio broadcasting is the broadcasting of audio (sound), sometimes with related metadata, by radio waves to radio receivers belonging to a public audience. In terrestrial radio broadcasting the radio waves are broadcast by a land-based radio station, while in satellite radio the radio waves are broadcast by a satellite in Earth orbit. To receive the content the listener must have a broadcast radio receiver (radio). Stations are often affiliated with a radio network that provides content in a common radio format, either in broadcast syndication or simulcast, or both. Radio stations broadcast with several different types of modulation: AM radio stations transmit in AM, FM radio stations transmit in FM, which are older analog audio standards, while newer digital radio stations transmit in several digital audio standards: DAB, HD radio, DRM. Television broadcasting is a separate service that also uses radio frequencies to broadcast television (video) signals.

Los Angeles

Los Angeles

Los Angeles, often referred to by its initials L.A., is the commercial, financial, and cultural center of Southern California. Los Angeles is the largest city in the state of California, the second most populous city in the United States after New York City, and one of the world's most populous megacities. With a population of roughly 3.9 million residents within the city limits as of 2020, Los Angeles is known for its Mediterranean climate, ethnic and cultural diversity, being the home of the Hollywood film industry, and its sprawling metropolitan area. The majority of the city proper lies in a basin in Southern California adjacent to the Pacific Ocean in the west and extending partly through the Santa Monica Mountains and north into the San Fernando Valley, with the city bordering the San Gabriel Valley to its east. It covers about 469 square miles (1,210 km2), and is the county seat of Los Angeles County, which is the most populous county in the United States with an estimated 9.86 million residents as of 2022.

Nielsen ratings

Nielsen ratings

Nielsen TV ratings are the audience measurement systems operated by Nielsen Media Research that seek to determine the audience size and composition of television programming in the United States using a rating system. Nielsen is no longer accredited by the Media Rating Council (MRC).

Statistics

Statistics

Statistics is the discipline that concerns the collection, organization, analysis, interpretation, and presentation of data. In applying statistics to a scientific, industrial, or social problem, it is conventional to begin with a statistical population or a statistical model to be studied. Populations can be diverse groups of people or objects such as "all people living in a country" or "every atom composing a crystal". Statistics deals with every aspect of data, including the planning of data collection in terms of the design of surveys and experiments.

Computer

Computer

A computer is a machine that can be programmed to carry out sequences of arithmetic or logical operations (computation) automatically. Modern digital electronic computers can perform generic sets of operations known as programs. These programs enable computers to perform a wide range of tasks. A computer system is a nominally complete computer that includes the hardware, operating system, and peripheral equipment needed and used for full operation. This term may also refer to a group of computers that are linked and function together, such as a computer network or computer cluster.

Leased line

Leased line

A leased line is a private telecommunications circuit between two or more locations provided according to a commercial contract. It is sometimes also known as a private circuit, and as a data line in the UK. Typically, leased lines are used by businesses to connect geographically distant offices.

New York City

New York City

New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over 300.46 square miles (778.2 km2), New York City is the most densely populated major city in the United States and more than twice as populous as Los Angeles, the nation's second-largest city. New York City is located at the southern tip of New York State. It constitutes the geographical and demographic center of both the Northeast megalopolis and the New York metropolitan area, the largest metropolitan area in the U.S. by both population and urban area. With over 20.1 million people in its metropolitan statistical area and 23.5 million in its combined statistical area as of 2020, New York is one of the world's most populous megacities, and over 58 million people live within 250 mi (400 km) of the city. New York City is a global cultural, financial, entertainment, and media center with a significant influence on commerce, health care and life sciences, research, technology, education, politics, tourism, dining, art, fashion, and sports. Home to the headquarters of the United Nations, New York is an important center for international diplomacy, and is sometimes described as the capital of the world.

Nielsen Holdings

Nielsen Holdings

Nielsen Holdings plc is an American information, data and market measurement firm. Nielsen operates in over 100 countries and employs approximately 44,000 people worldwide.

Monopoly

Monopoly

A monopoly, as described by Irving Fisher, is a market with the "absence of competition", creating a situation where a specific person or enterprise is the only supplier of a particular thing. This contrasts with a monopsony which relates to a single entity's control of a market to purchase a good or service, and with oligopoly and duopoly which consists of a few sellers dominating a market. Monopolies are thus characterized by a lack of economic competition to produce the good or service, a lack of viable substitute goods, and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit. The verb monopolise or monopolize refers to the process by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is, the power to charge overly high prices, which is associated with a decrease in social surplus. Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry.

License

License

A license is an official permission or permit to do, use, or own something.

Party (law)

Party (law)

A party is an individual or group of individuals that compose a single entity which can be identified as one for the purposes of the law.

Methods

Survey

Arbitron's syndicated radio ratings service collects data by selecting a random sample of a population throughout the United States, primarily in 294 metropolitan areas, using a paper diary service 2‑4 times a year and the Portable People Meter (PPM) electronic audience measurement service 365 days a year.

The term commonly used in the radio industry for these ratings is Arbitron book, a carryover from the era when ratings were published in a softcover report that was mailed to clients. More specifically, in the diary-measured markets these reports were called the "Spring book", "Summer book", "Fall book", and "Winter book". Between these "books", Arbitron releases interim monthly reports called "Arbitrends", which contain data from the previous three months known as "rolling average" reports. The two interim reports would be known, for example, as "Spring, Phase I" and "Spring, Phase II".

Arbitron recruits diary survey respondents to note their listening habits in a seven-day paper diary and mail it back to Arbitron. The respondents are paid a small cash incentive for their participation. Turnaround time for release of data from the end of the survey period is approximately three weeks.

After collection, the data is marketed to radio broadcasters, radio networks, cable TV companies, advertisers, advertising agencies, out-of-home advertising companies, and the online radio industry.[7] Major ratings products include cume (the cumulative number of unique listeners over a period), average quarter hour (AQH share – the average number of people listening in a given 15‑minute period), time spent listening (TSL), and market breakdowns by age, gender, and race/ethnicity. It is important to understand that the "cume" only counts a listener once, whereas the AQH is a product of "cume" and time spent listening. For example, if you looked into a room and saw Fred and Jane, then 15 minutes later saw Fred with Sara. The "cume" would be 3 (Fred, Jane, Sara) and the AQH would be 2 (an average of two people in the room in a given 15‑minute period).

Portable People Meter

Responding to requests from its customers — radio broadcasters, ad agencies and advertisers — that expressed their interest in the collection of more accurate ratings data, Arbitron introduced the Portable People Meter (PPM) service in 2007.[8]

The PPM is a wearable portable device, much like a pager or mobile phone, that electronically gathers subaudible codes that identify the source of a broadcast, such as a radio station. Arbitron recruits and compensates a cross-section of consumers to wear the meter for an average of one year and up to two years. The audience estimates generated from each monthly survey are used as the buy/sell currency for radio stations and advertisers/agencies.

As of December 2009, the PPM was measured in 33 media markets, including Houston, Philadelphia, Pittsburgh, New York City, Atlanta, Detroit, Long Island, Middlesex-Somerset-Union, Chicago, Los Angeles, Riverside-San Bernardino, San Francisco, Jacksonville, Baltimore, and San Jose.[9] By 2010, 48 markets are being measured using the PPM.[10][11]

Discover more about Methods related topics

Portable People Meter

Portable People Meter

The Portable People Meter (PPM), also known as the Nielsen Meter, was a system developed by Arbitron to measure how many people are exposed, or listening to individual radio stations and television stations. This also includes cable television. The PPM is worn like a pager, and detects hidden audio tones within a station or network's audio stream, logging each time it finds a signal.

Audience measurement

Audience measurement

Audience measurement measures how many people are in an audience, usually in relation to radio listenership and television viewership, but also in relation to newspaper and magazine readership and, increasingly, web traffic on websites. Sometimes, the term is used as pertaining to practices which help broadcasters and advertisers determine who is listening rather than just how many people are listening. In some parts of the world, the resulting relative numbers are referred to as audience share, while in other places the broader term market share is used. This broader meaning is also called audience research.

Radio network

Radio network

There are two types of radio network currently in use around the world: the one-to-many broadcast network commonly used for public information and mass-media entertainment, and the two-way radio type used more commonly for public safety and public services such as police, fire, taxicabs, and delivery services. Cell phones are able to send and receive simultaneously by using two different frequencies at the same time. Many of the same components and much of the same basic technology applies to all three.

Out-of-home advertising

Out-of-home advertising

Out-of-home (OOH) advertising, also called outdoor advertising, outdoor media, and out-of-home media, is advertising experienced outside of the home. This includes billboards, wallscapes, and posters seen while "on the go". It also includes place-based media seen in places such as convenience stores, medical centers, salons, and other brick-and-mortar venues. OOH advertising formats fall into four main categories: billboards, street furniture, transit, and alternative.

Internet radio

Internet radio

Online radio is a digital audio service transmitted via the Internet. Broadcasting on the Internet is usually referred to as webcasting since it is not transmitted broadly through wireless means. It can either be used as a stand-alone device running through the Internet, or as a software running through a single computer.

Cume

Cume

In the practice of measuring the size of US commercial broadcasting and newspaper audiences, cume, short for "cumulative audience", is a measure of the total number of unique consumers over a specified period.

AQH share

AQH share

AQH share is a statistic that measures broadcast radio listenership.

Pager

Pager

A pager is a wireless telecommunications device that receives and displays alphanumeric or voice messages. One-way pagers can only receive messages, while response pagers and two-way pagers can also acknowledge, reply to and originate messages using an internal transmitter.

Mobile phone

Mobile phone

A mobile phone is a portable telephone that can make and receive calls over a radio frequency link while the user is moving within a telephone service area, as opposed to a fixed-location phone. The radio frequency link establishes a connection to the switching systems of a mobile phone operator, which provides access to the public switched telephone network (PSTN). Modern mobile telephone services use a cellular network architecture and therefore mobile telephones are called cellphones in North America. In addition to telephony, digital mobile phones support a variety of other services, such as text messaging, multimedia messagIng, email, Internet access, short-range wireless communications, satellite access, business applications, video games and digital photography. Mobile phones offering only basic capabilities are known as feature phones; mobile phones which offer greatly advanced computing capabilities are referred to as smartphones.

Radio broadcasting

Radio broadcasting

Radio broadcasting is the broadcasting of audio (sound), sometimes with related metadata, by radio waves to radio receivers belonging to a public audience. In terrestrial radio broadcasting the radio waves are broadcast by a land-based radio station, while in satellite radio the radio waves are broadcast by a satellite in Earth orbit. To receive the content the listener must have a broadcast radio receiver (radio). Stations are often affiliated with a radio network that provides content in a common radio format, either in broadcast syndication or simulcast, or both. Radio stations broadcast with several different types of modulation: AM radio stations transmit in AM, FM radio stations transmit in FM, which are older analog audio standards, while newer digital radio stations transmit in several digital audio standards: DAB, HD radio, DRM. Television broadcasting is a separate service that also uses radio frequencies to broadcast television (video) signals.

Media market

Media market

A media market, broadcast market, media region, designated market area (DMA), television market area, or simply market is a region where the population can receive the same (or similar) television and radio station offerings, and may also include other types of media such as newspapers and internet content. They can coincide or overlap with one or more metropolitan areas, though rural regions with few significant population centers can also be designated as markets. Conversely, very large metropolitan areas can sometimes be subdivided into multiple segments. Market regions may overlap, meaning that people residing on the edge of one media market may be able to receive content from other nearby markets. They are widely used in audience measurements, which are compiled in the United States by Nielsen Media Research. Nielsen measures both television and radio audiences since its acquisition of Arbitron, which was completed in September 2013.

New York City

New York City

New York, often called New York City or NYC, is the most populous city in the United States. With a 2020 population of 8,804,190 distributed over 300.46 square miles (778.2 km2), New York City is the most densely populated major city in the United States and more than twice as populous as Los Angeles, the nation's second-largest city. New York City is located at the southern tip of New York State. It constitutes the geographical and demographic center of both the Northeast megalopolis and the New York metropolitan area, the largest metropolitan area in the U.S. by both population and urban area. With over 20.1 million people in its metropolitan statistical area and 23.5 million in its combined statistical area as of 2020, New York is one of the world's most populous megacities, and over 58 million people live within 250 mi (400 km) of the city. New York City is a global cultural, financial, entertainment, and media center with a significant influence on commerce, health care and life sciences, research, technology, education, politics, tourism, dining, art, fashion, and sports. Home to the headquarters of the United Nations, New York is an important center for international diplomacy, and is sometimes described as the capital of the world.

Source: "Nielsen Audio", Wikipedia, Wikimedia Foundation, (2023, January 18th), https://en.wikipedia.org/wiki/Nielsen_Audio.

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Further Reading

KLVE

CHDI-FM

KRYP

Portable People Meter

NPR
See also
References
  1. ^ a b c d e f "Arbitron, Form 10-K, Annual Report, Filing Date Feb 24, 2012" (PDF). secdatabase.com. Retrieved Jan 13, 2013.
  2. ^ Richter, William A. (2006). Radio: A Complete Guide to the Industry, Volume 4 of Media industries. Peter Lang. p. 84. ISBN 9780820476339.
  3. ^ Beville, Hugh Malcolm (1988). Audience Ratings: Radio, Television, and Cable. Psychology Press. p. 68. ISBN 9780805801743.
  4. ^ "Arbitron, Form 8-K, Current Report, Filing Date Dec 18, 2012". secdatabase.com. Retrieved Jan 13, 2013.
  5. ^ "Nielsen to Branch Out With Arbitron". The Wall Street Journal. Retrieved 19 December 2012.
  6. ^ "Nielsen Deal For Arbitron Is Complete". The New York Times. Retrieved 1 October 2013.
  7. ^ "What We Do". Arbitron. Archived from the original on 11 January 2007. Retrieved 2007-01-11.
  8. ^ "Arbitron, Form 10-K, Annual Report, Filing Date Feb 27, 2007" (PDF). secdatabase.com. Retrieved Jan 13, 2013.
  9. ^ "Arbitron, Form 10-K, Annual Report, Filing Date Mar 1, 2010". secdatabase.com. Retrieved Jan 13, 2013.
  10. ^ "Arbitron, Form 10-K, Annual Report, Filing Date Feb 24, 2011" (PDF). secdatabase.com. Retrieved Jan 13, 2013.
  11. ^ "Arbitron PPM Update September 2011 Report Release" (PDF). Arbitron. 2011-10-12. Archived from the original (PDF) on 2012-01-05. Retrieved 2011-12-12.
  12. ^ Vega, Tanzina (13 September 2012). "ESPN, Aided by Arbitron and comScore, to Follow the Audience Wherever It Goes". New York Times. Retrieved 13 September 2012.
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