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NBC's Olympic Test: Counting All the Games'
Viewers
Wall Street Journal
By Suzanne Vranica
June 20, 2008
NBC Universal plans to use its coverage of the Beijing Olympic
Games to launch a new system for measuring viewership across an
array of different media, including video-on-demand, cellphones
and the Web, as well as traditional television.
NBC hopes the new system -- which will be offered to advertisers
at the start of the new fall season -- will give it ammunition
to persuade advertisers to buy ad time on newer media such as VOD
and cellphone video. That's a big issue for media companies, facing
an erosion of audiences and ad dollars at their traditional outlets.
Associated Press
Michael Phelps competes in the 100-meter butterfly final at Saturday's
U.S. Olympic trials in Omaha, Neb. While TV networks are putting
programming on a growing number of outlets, hoping to catch viewers
whether they are surfing the Web or watching on their phones, NBC
at least isn't satisfied with measures currently available to track
viewing on these different outlets. The dominant firm tracking
TV viewing, Nielsen Corp.'s Nielsen Media Research, has introduced
services to measure Web usage and mobile viewing, but it uses different
techniques. While it tracks TV viewing mostly through a device
attached to TV sets, its mobile-device measurement relies on surveys
of consumers and data from customer bills on what videos have been
downloaded. Nielsen is expected to roll out a more advanced system
this year.
"We need to demonstrate that money spent on the Olympics was money
well spent," says Alan Wurtzel, president of research for NBC Universal,
a unit of General Electric Co. "Management said to me we have to
figure out a way to go beyond Nielsen to measure this stuff." A
spokesman for Nielsen said the company is "doing more total measurement
for NBC than in any other Olympics."
During the Olympics, in addition to releasing the traditional
Nielsen TV ratings during the Games, NBC will issue a daily "Total
Audience Measurement Index (TAMI)." It will include measurements
of viewership on all the media venues airing NBC's Olympic programming
-- the NBC broadcast network, cable channels such as Oxygen and
CNBC, NBC's Web sites, video-on-demand services and mobile programming.
To collect data for online, mobile and VOD usage, NBC will work
with data providers such as research company Rentrak Corp., online
measurement firm Quantcast Inc. and Web analytics firm Omniture.
The new measurements will be used only for research purposes during
the Games, as most of the ad deals have already been negotiated
and are based on traditional Nielsen ratings data. But the new
measurement could be part of ad negotiations for the next Olympic
Games in Vancouver, British Columbia.
NBC shelled out $894 million for the broadcasting rights to the
Beijing games, a steep price tag for the 17-day sporting extravaganza,
which because of the time difference with the U.S. could be one
of the least watched on network TV.
In addition, network executives say this will be the biggest production
event in television history, surpassing the $125 million the company
spent in 2000 on the Sydney Games. NBC says ad time on Olympics
is about 80% sold and the company says it expects to bring in more
than $1 billion in ad dollars.
NBC plans other research efforts during the Games. On top of the
daily release of the data, NBC will also poll an online panel of
500 people daily to come up with deeper insights about their media
habits. They will try to find out things such as the overall amount
of time consumers spent on various media and where they watched
a particular Olympic event. NBC will use Nielsen's IAG to conduct
another poll to measure how commercials and online ads resonated
with consumers and whether viewers can recall what products are
being peddled.
Forty other consumers have volunteered to carry a special cellphone
that will pick up audio cues from NBC networks airing Olympic coverage
as well as have software installed on their computer that will
track how much they use the Web to watch the Games.

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