Every goods company wants everyone use their product. But how to analyze consumer taste, consistency, and way of thinking nationally or even globally? How can advertising industry be informed of accurate, consistent measures from their own campaigns? How to understand the true impact of investing in ads?
Nielsen as a global research and consulting company focused primarily on global information and media. It conducts research and data analysis to measure some information mainly about marketing: fast-moving consumer goods, consumer behavior, and media such as television, can provide that kind of insightful analysis. As the number 1 among top 50 Market Research Firms in the US, Nielsen consistently understanding consumers’ subconscious response to ads. There are basically three things on how Nielsen does since 1936: Understanding ‘Buy’, ‘Watch’, and the market itself.
With around 25% of revenues come from TV ratings, Nielsen brand is very associated with it. But that’s not just it. In 1936, Nielsen does the first audience measurement, it was called the Nielsen ratings. At that time, 1000 homes were surveyed about the radio channel they use. In 1950, they created a device attached to a television to track what is watched. In addition, the ‘Nielsen families’ are also given diaries. They were registered by also giving their demographic info. So, in the end, Nielsen will know the demographic breakdown of its viewers. However, this diaries method has been retired in mid-2017 and replaced by different technology. In 1980, Nielsen made people meter, a device which looks like a remote control with buttons for each family member and guests. Viewers push a button to signify whether or not they are still watching the television. It was harder in the surveyed customer side, but this kind of design provided more detailed data about each individual behavior representing each demographics. And in 2008, they start to gather the data from internet and mobile devices. With 2.2/5.0 ratings in Apps Store, Nielsen apps user complaints about its pretty intense tracking activity which make some devices become much slower.
Value capture and creation
Now, with the data from more than 60 million households representing 905 of world populations from more than 100 countries, Nielsen achieved around USD 60 million annually in 2016. Their clients are upper middle and multinational company which value the consumer relationship management and consumer insights. It provides the integrated report, customized research, the technology of data capture/survey tools, and innovative research methodology. Reporting segments of Nielsen are
- ‘Buy’: Consumer purchasing measurement and analytics for retail data, store data, and match it with household panel data.
- ‘Watch’: Media audience measurement and analytics of TV, radio, computers, mobile, programming.
- Market: Measure current performance, how to improve, how to strengthen the market position, and how is the market dynamics.
On the other side, its competitor in Southeast Asia, Markplus Inc, also provides strategy on how to check product availability and also distribution chain. Nielsen’s strength is their brand is popular as an experienced company of the field, the information provided in real time and a lot of the market research are published for free.