Game Over

American Demographics, Feb 1, 2004 by Christopher Reynolds

When Nielsen released its numbers in the fall, broadcast media giants, such as NBC and CBS, were outraged. Network executives said Nielsen's updated mathematical methodology and population estimation system for counting viewers and weighting audiences introduced new inaccuracies into TV ratings for that age group. New data revealed that for men between 18 and 34, there was a sharp 5.8 percent drop in total day (6 a.m. to 6 p.m.) broadcast TV viewing and an even steeper 7.7 percent decline in prime-time broadcast viewing from the same period the previous year. That is an average loss of about 4.5 minutes, or 270 seconds, of broadcast viewing during prime-time.

Some defend Nielsen's findings. "I believe that the Nielsen system is better than ever," says Shari Anne Brill, vice president, director of programming at Carat USA, a New York advertising firm. "Although, it still stands to be improved because it needs to keep pace with the technological advances that are out there."

Facing severe criticism from TV networks, Nielsen examined its research for possible errors in its data collection process, or problems with its samples. It had changed its methodology to account for the increasing Hispanic population, to recognize the growing number of dependant young adults (those who live at home with their parents) and to bring its audience sample more in line with current population estimates.

In late November, Nielsen published a 43-page paper, concluding that it had found no errors in the collection process. However, Nielsen acknowledged that changes in methodology could account for 40 percent of the drop in prime-time viewing. Which means that 60 percent of the ratings decrease were traced back to younger men tuning out.

Nielsen's controversy aside, younger men do seem to be losing interest in prime-time TV, as they turn to other forms of entertainment such as cable shows, video games, the Internet, digital video recorders (DVRs), DVDs, movies and video-on-demand. TV executives, as well as advertisers, are realizing that men, who have grown up with video games and the Internet, are likely to use several kinds of media. "It would behoove advertisers who are interested in reaching that demographic to recognize the trend and look at the possibilities of other venues," says Brill.

Optimedia's Magel says his clients consider different media to reach younger males. "We are looking to learn how to provide the best options for our clients across all forms of media," he says. "It makes sense to get involved with them early, test out new things, and be the ones to have the relationships with these companies when they start to reach critical mass."

Savvy advertisers have already allocated large chunks of their marketing budgets to other mediums. While Volkswagen spent over $125 million on television advertising in 2003, the car company also paid Sony Computer Entertainment to have one of its vehicles featured in Gran Turismo 3: A Spec. In the car racing game, the player can buy different car models from the Dodge Viper to Volkswagen's new Beetle.