What is the 'Nielsen Corporation'

The Nielsen Corporation is a global provider of market research and analysis of media and viewer interaction. It attempts to provide its clients with valuable insights into consumer behavior and marketing information. This is done through data collection and measurement methods that evaluate what consumers watch and what they buy. The Nielsen Corp. is best known for its Nielsen ratings, which measure audiences for television, radio and newspapers in media markets.

Breaking Down 'Nielsen Corporation'

The company was founded by Arthur C. Nielsen Sr. in 1923, and was incorporated in 1929. It has its headquarters in New York and is part of Nielsen Holdings PLC of the United Kingdom. It has operations in several countries. It is also known as The Nielsen Company, and was formerly referred to as ACNielsen and AC Nielsen. Investors and companies use Nielsen's ratings to predict consumer trends. It serves a number of industries including television, radio, consumer packaged goods & retail, advertising agencies, internet companies, music, video games and sports.

Nielsen Corporation and Nielsen Ratings

The Nielsen ratings were developed by Nielsen Media Research to measure audience size and makeup of U.S. television programming. It started in the 1920s with brand-based advertising analysis and extended to radio market analysis in the 1930s, providing radio show market analysis. It first provided ratings for radio programming in 1947 with market analysis for the top-20 shows based on total audience, average audience, cumulative audience, and homes per dollar spent for time and talent. The Nielsen ratings extended to television in 1950 using the same techniques used for radio programming evaluation. It is now the standard for television audience measurement around the world.

Nielsen Corporation: Other Research

Nielsen also measures the shopping and media behavior of millions of consumers around the world through its market research tool Homescan. It tracks all retail and grocery purchases, which allows researchers to link purchasing habits to household demographic data.

In 2005, ACNielsen (as it was named then) began its Media Voice Panel (MVP) program, which worked by having panel members carry around an electric device that collected station and program identification codes embedded within radio and television broadcasts they encountered. At the end of the day the monitoring device was placed in a cradle that downloaded and transmitted the collected data back to Nielsen using the home's electrical wiring as a home network via a telephone relay, one of the first applications of its kind at the time.

  1. Power Ratio

    Power ratio is a measure of a media company's revenue performance ...
  2. Broadcasters Liability Insurance

    Financial protection for radio and television companies against ...
  3. ABCD Counties

    ABCD Counties are categories of U.S. counties devised by The ...
  4. Consumer Confidence Index - CCI

    The Consumer Confidence Index (CCIA) Survey by the Conference ...
  5. Social Media Marketing (SMM)

    Social media marketing (SMM) is the use of social media websites ...
  6. Business-to-Business Advertising

    Business-to-business advertising is marketing efforts directed ...
Related Articles
  1. Personal Finance

    Be Wary of Financial Advice Heard on Radio, TV

    Radio and television is best left for entertainment, not financial advice.
  2. Investing

    More Time Spent on Google Sites Than Facebook: Study

    Nielsen data shows that Facebook is losing out to YouTube and Waze in tallying time spent online.
  3. Investing

    Why Facebook Is Free to Use (FB)

    Learn why Facebook is free to users, and understand how the company makes more money by charging advertisers than it would if it charged users.
  4. Small Business

    Advertising From TV To Internet: An Industry History

    Changes in television consumption habits have forced advertising to target audiences through new means, namely Internet advertising.
  5. Small Business

    5 Reasons The Cable TV Industry Is Dying

    The demise of cable TV has been written about for many years but cable continues to hang on. This article discussed why cable is faced with these issues.
  6. Investing

    Drug Direct-to-Consumer Marketing Expected to Fall

    Pharmaceutical companies will spend less on direct-to-consumer drug advertising in 2017, say marketing experts.
  7. Investing

    The World's Top Ten Media Companies

    Investopedia provides the list of top global media companies, including market cap and areas of operations.
  8. Investing

    Video Game Stocks Rise to Top of S&P 500: Morgan Stanley

    Analysts highlight growth of in-game revenue and digital downloads as their shares outperform.
  9. Investing

    One Way Apple Would Consider a Disney Deal (AAPL, DIS)

    For Apple to see Disney as an attractive asset, John Malone said Disney would first need to split from its sports network ESPN.
  1. How does government regulation impact the telecommunications sector?

    Read about the many ways the U.S. government regulates the telecommunications industry, including radios, telephones, TV ... Read Answer >>
  2. Is it better to use fundamental analysis, technical analysis or quantitative analysis ...

    Understand the difference between fundamental, technical and quantitative analysis, and how each measurement helps investors ... Read Answer >>
  3. How do Internet companies profit if they give away their services for free?

    Learn how companies in the Internet sector make a profit when service, content and user applications are offered at no cost ... Read Answer >>
  4. How does Twitter make money?

    Learn how Twitter earns revenue, including how the social media company uses three targeted advertising streams, data farming ... Read Answer >>
Hot Definitions
  1. Inflation

    Inflation is the rate at which prices for goods and services is rising and the worth of currency is dropping.
  2. Discount Rate

    Discount rate is the interest rate charged to commercial banks and other depository institutions for loans received from ...
  3. Economies of Scale

    Economies of scale refer to reduced costs per unit that arise from increased total output of a product. For example, a larger ...
  4. Quick Ratio

    The quick ratio measures a company’s ability to meet its short-term obligations with its most liquid assets.
  5. Leverage

    Leverage results from using borrowed capital as a source of funding when investing to expand the firm's asset base and generate ...
  6. Financial Risk

    Financial risk is the possibility that shareholders will lose money when investing in a company if its cash flow fails to ...
Trading Center