Nielsen Slows LPM Rollout

Nielsen has written to clients announcing a delay to the rollout of its Local People Meter (LPM) service in local television markets. The company will pause when the LPM is in use in 25 markets, instead of continuing rapidly to reach all 56 originally scheduled.

In a letter to clients dated Tuesday this week, the firm said an 'ambitious plan' announced in 2006 to replace the meter/diary methodology with Local People Meters in all 56 markets that currently have Set Meter service, has been amended. The company will 'take a 'pause' and temporarily place on hold the installation of LPM markets' once the total (currently on 18 markets) reaches 25.

The 18 current markets represent 43% of U.S. television households. A further six markets will launch on schedule in 2009 - Orlando, Sacramento and St. Louis in January and Pittsburgh, Baltimore and Portland OR in July - and the final scheduled launch will be delayed three months to January 2010, in Charlotte. This will bring representation using the LPM to 49% of US television households.

The delays reflect troubled times for TV stations, many of whom are looking to cope with double digit revenue drops in 2009 by cutting costs everywhere they can. Nielsen notes in the letter: 'We all face a very challenging economic climate. Our clients have made it clear that we need to work closely with them to establish the right pacing of LPM roll outs, determine the right business model in light of current market conditions, and identify the most appropriate People Meter technology for these mid-size markets. As 2009 progresses and the economic condition becomes clearer, we will be better positioned, along with our clients, to adjust our moving forward plans.' The ratings giant stresses that its 'commitment to bringing electronic measurement to all local markets remains unchanged.'

Web site: www.nielsen.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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