A significant aspect of discussions concerning sports ratings is their measurement, which impacts rights deals, advertising prices, and more. While Nielsen’s ratings typically dominate the conversation, they’re not the only player in the field. However, they are increasingly referenced for streaming-exclusive properties, including NFL games on platforms like Prime Video, Peacock, and Netflix. It’s important to note that “Nielsen ratings” encompass a variety of data sets with different methodologies, but one of the key areas for NFL ratings recently received noteworthy attention: the Media Rating Council’s (MRC) accreditation of Nielsen’s Big Data+Panel national TV measurement.
Nielsen’s definition of “big data” involves “return-path data (RPD) from cable and satellite set-top boxes” and “automatic content recognition (ACR) data from internet-connected smart TVs.” Much of this data is accessible to other stakeholders, including smart TV manufacturers and MVPDs. Nielsen combines this data, sourced from over 75 million households and 45 million devices through partnerships with companies like Comcast, DirecTV, Dish, Roku, and Vizio, with their traditional panel metrics, which includes 101,000 individuals from 42,000 households. This evolving data set is gaining importance, with the MRC accreditation underscoring its significance.
The MRC, established in 1963 and comprising representatives from media companies and advertisers, plays a crucial role in standardizing measurement widely accepted by advertisers, media companies, and ratings services. Notably, it approved Nielsen’s first-party data inclusion framework for Prime Video’s Thursday Night Football last November, closing a long-standing debate regarding measurement accuracy. In 2022, Nielsen utilized only their traditional panel for TNF metrics, while Prime Video’s parent company, Amazon, provided significantly higher internal numbers. Following that, Nielsen sought to implement first-party data within their framework in 2023, adopted solely by Amazon at the time.
This situation resulted in notable pushback from broadcasters such as ESPN, Fox, and CBS, along with organizations like the Video Advertising Bureau. Ultimately, this led to two sets of weekly Nielsen data: one based solely on the panel and another that incorporates first-party data into the Big Data+Panel numbers, with the latter generally yielding higher results. The MRC’s recent approval of Nielsen’s first-party data framework further legitimized its approach, allowing for its potential expansion.
“The Media Rating Council (MRC) has completed its accreditation process covering Nielsen’s innovative Big Data + Panel National TV measurement,” said Karthik Rao, Nielsen CEO. “No one else pairs a high-quality, representative panel with a data set this large, pulling from smart TVs and set-top boxes in more than 45 million homes.” The NFL has also expressed their support, affirming the importance of modernizing measurement to provide accurate insights in a fragmented media landscape.
As a result of these developments, many of Nielsen’s other NFL broadcast partners signed deals for first-party data inclusion ahead of the current season. These agreements helped broadcasters present higher viewership numbers, amidst narratives concerning the overall NFL ratings drop of just two percent this season, a relatively minor decline given the competition from the presidential election coverage.
Network methods vary; for instance, NBC combines Nielsen live+same day data with Adobe Analytics for their NFL announcements. While some previous critics of first-party data inclusion have now embraced this concept, debates about specific implementations still persist. The recent MRC accreditation of Nielsen’s Big Data+Panel framework suggests broader acceptance moving forward.
As for the potential impact on viewership statistics, it’s uncertain, but substantial changes have occurred before, such as Nielsen’s out-of-home viewing tracking implementation in 2020. This shift led to increased panel viewership numbers for sports broadcasts. Should the Big Data+Panel data become more widely referenced, similar increases could be anticipated, particularly regarding era-to-era comparisons.
The actual implications for the sports business realm are more complex. Viewership figures may be intriguing, but their monetary value correlates with what advertisers are willing to pay for ad slots and what networks pay for rights deals. As these values are interconnected and subject to negotiation, recent audience fluctuations in linear live television may also play a role. Historical lag exists between viewership numbers and their consequences on rights deals and advertising rates. Advertisers have previously claimed awareness and compensation for “uncounted” viewers, a position they may reiterate, despite growing recognition for the Big Data+Panel metrics.
The MRC’s acknowledgment of Nielsen’s approach significantly enhances its credibility, indicating this model is now more than just an internal initiative. As a result, networks may better justify their rates using the Big Data+Panel figures in addition to traditional panel data.
