TV Networks Demand Audit of Nielsen in Escalating Feud

An industry group representing major television networks is demanding that Nielsen have its measurement homework checked. The Video Advertising Bureau (VAB), which represents companies like A+E Networks, Disney, Fox, NBCUniversal and ViacomCBS, is demanding that the measurement firm submit to a third-party audit to verify the accuracy of Nielsen’s audience measurement from March 2020 through March 2021. The request comes after the VAB accused Nielsen of "systematic and compounded undercounting of overall TV use" over the course of the pandemic last week due to the way it managed its panel, which comprises an essential part of Nielsen ratings. In a letter addressed to Nielsen CEO David Kenny sent Wednesday, VAB CEO Sean Cunningham demanded that the professional services firm Ernst and Young be allowed to conduct a third-party audit to evaluate the validity of the numbers that Nielsen provided over that time period. As part of the audit, the VAB has also requested that the auditor provide recommendations, including making numerical adjustments to the audience numbers Nielsen reported during that timeframe. “On behalf of the VAB Board Leadership, which includes the heads of multiscreen TV ad sales organizations, I am conveying to you in the strongest possible terms the VAB’s profound dissatisfaction and concerns with Nielsen’s handling of our industry’s months-long urging for right-sized remedies to shortfalls in the company’s Covid period TV usage and measurement data,” Cunningham wrote in the letter, which was first reported by Variety. Nielsen, whose panel is a core foundation for the TV industry’s advertising backbone, has maintained that its measurement is sound, even as it had to change its panel maintenance protocols in the middle of the pandemic. The measurement firm’s chief data officer Mainak Mazumdar previously told Adweek that audience data remains statistically valid and networks should blame audience drops on changing consumer viewing patterns and programming gaps driven by production shutdowns. A spokesperson for Nielsen said, “Nielsen is committed to providing reliable and accurate data to the media industry. We received VAB’s letter, and we are in the process of evaluating our next steps.” The squabble has been brewing behind the scenes for months after Nielsen adjusted its panel management protocols as the Covid-19 pandemic first descended on the U.S. Due to some household changes, Nielsen’s responding panel shrunk by 20% over the course of the timeframe, and the company pressed pause on in-person visits. Nielsen maintains that it adjusted its measurement accordingly, kept its network partners up to date on the changes and offered guidance throughout the process. The VAB maintains that network executives were taken aback by some data points provided by Nielsen and has charged that Nielsen’s reported audience declines don’t track with other data sources. The industry group suggested that some audience losses could be due to Nielsen measuring homes that had been temporarily vacated as people relocated during the pandemic. It also demanded more transparency into how Nielsen adjusted to measure viewing to account for diverse representations in its households. It’s worth noting the timing of the letter, which comes as broadcasters are fast approaching the 2021 upfronts season where they will look to get marketers to commit to buying advertising across their lineup of programming. Audience numbers from the last year will affect rates in upfront negotiations as networks often use them for reference to give marketers an idea of the audiences they might expect. Networks are keen on securing the best rates, and Cunningham acknowledged that inaccuracies in audience measurement could have detrimental effects during those talks. “With a fast-approaching national TV upfront, the marketplace needs clear visibility into all Covid-period shortfalls and accurate overview of any exaggerated TV usage,” Cunningham wrote in the VAB letter. The industry group has asked for a response no later than April 19. Read Next: Nielsen, Networks Face Off Over Pandemic TV Audience Measurement

TV Upfronts

TV Networks Demand Third-Party Audit in Escalating Feud With Nielsen

Industry group had previously alleged an audience undercount

Kelsey Sutton

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Kelsey Sutton