Wednesday, Sept. 2, 1998 | 11:24 a.m.
When Nielsen Media Research begins counting Las Vegas television watchers with a high-tech metering system later this year, the small independent stations and cable channels should be the big beneficiaries.
Experts who have experienced the transition of Nielsen surveys from diary-based counts to metered systems in other markets say the high level of survey accuracy offered by meters usually translates into higher viewership statistics for the up-and-coming stations that challenge the big network affiliates.
But station managers at Las Vegas' big affiliates -- NBC's KVBC Channel 3, CBS' KLAS Channel 8 and ABC's KTNV Channel 13 -- say the accuracy offered by the meters translates into more total viewers overall and not necessarily more just for the underdogs.
Meanwhile, the four major networks also are investing in a rival ratings service that could be operating within two years.
Representatives of CBS, ABC, NBC and Fox last month signed letters of intent to back Statistical Research Inc., Westfield, N.J., with its new ratings service, nicknamed "Smart."
Statistical Research is attempting to develop a $100 million launch budget and is expected to get additional backing from several big advertising agencies and cable operations.
Most of the station executives concur that the anticipated documentation of greater numbers of viewers won't necessarily translate into higher advertising revenues. But TV stations will likely pass at least some of the added expenses of Nielsen's metering system on to advertisers.
While none of the executives would pinpoint how much extra Nielsen is charging for the metered survey, some said it would cost about 10 times more than the ratings books generated from statistics off diaries.
New York-based Nielsen's ratings are the basis of television advertising rates and help networks decide what shows to broadcast. It's expanding its metered counting system into eight new markets in the 13 months between April 1998 and April 1999.
Next to be installed: Las Vegas, which Nielsen ranks as the No. 56 market in the nation by the number of homes with televisions. Nielsen expects to complete the installation of meters in Southern Nevada in October.
Karen Kratz, senior manager of communications for Nielsen, said the installation process began last month and by October, there will be 300 homes equipped with metering systems. She said that number would grow to 350 by 1999 and 400 by 2000. Not only does Nielsen specify the number of meters going into homes, but also in which homes they go.
The company is attempting to match the exact demographic profile of Las Vegas so it is attempting to have the same proportion of minorities and viewers by age and gender as the population at large. While the stations help Nielsen with the demographics, the company keeps the identities of those surveyed a secret to avoid unfair influences from stations or advertisers.
Up until now, Nielsen surveys were accomplished by families filling out diaries. During "sweeps months" when ratings are gauged, "Nielsen families" would be required to keep an accurate accounting of which shows they watched and record them in the diary.
Soon, under the metering system, data monitoring viewing patterns will be stored in an electronic device. Information from the device will then be regularly transmitted by modem to a computer center in Dunedin, Fla.
In addition to being able to monitor viewing habits 24 hours a day, 365 days a year, the meters will be able to follow the use of every television and accessory in the house -- additional TVs, video-cassette recorders, games that are played on TV screens and, eventually, computer monitors that show broadcasts.
Kratz said Las Vegas, as a 24-hour town, has a large number of VCR users who tape their favorite shows for later play. The meters will be able to pick up which shows are being taped and when they are being watched.
The meters also will be able to determine if and when viewers channel surf through multiple choices.
Which stations will benefit most from the high degree of accuracy? Smaller stations fighting the big networks say it will be them, but the bigger stations say they, too, will count more watchers.
Mark Higgins, general manager of KVWB, Channel 21, and KFBT, Channel 33, has already worked in two markets that have converted from diaries to meters and it has been his experience that the smaller players get the biggest lift from the switch.
Prior to coming to Las Vegas, Higgins worked in Tampa, Fla., and Phoenix, which both converted to meters while he was there.
"I've seen from both sides," Higgins said, explaining he worked for a CBS affiliate in Phoenix that saw some of its viewership eroded by smaller stations. He also worked for a Fox affiliate that made inroads on the bigger networks in Tampa.
"I saw the uplift the meters provided for the smaller stations and I think that's going to happen here too," he said.
Rusty Durante, general manager of KVVU Channel 5, the local Fox affiliate, said the young crowd Fox enjoys attracting probably isn't as adept as seasoned viewers at filling out diaries, so he's convinced the meters will help him pick up audience share.
He also likes the fact VCR users will be counted.
"I'm sure there are plenty of viewers out there who watch 'ER,' but tape '(Star Trek:) Deep Space Nine,' " said Durante. "Now, those people who tape will be counted."
Bob Stoldal, general manager of Las Vegas 1, the 24-hour local cable news network, said meters are preferable to diaries because they take the guesswork out of the process and will give a more accurate picture of who's watching when. The Sun is a partner in Las Vegas 1.
"With the diary system, you need to fill it out as you watch, but most people don't do that," said Stoldal, who worked at WTVF, a CBS affiliate in Nashville, Tenn., when that market converted to meters.
"So you may not remember that your wife was watching football and you were watching a movie and the kids were watching something else, but at the end of the day, you write down that you watched your favorite news show."
But the major affiliates feel they'll be helped more than they'll be hurt by the meters.
"I'll be perfectly honest with you," said Dick Fraim, general manager of KLAS, Channel 8. "We really don't know what is going to happen. What typically happens is that ratings go up for everybody."
Fraim said a sister station in Nashville, Tenn., where the market converted to meters, experienced no erosion of viewership after the conversion.
"We'll know a lot more in a couple of months," said Rolla Cleaver, general manager of KVBC Channel 3. "Results have varied from market to market and one thing we do know about this market is that it is different from just about everywhere else in the United States."
Although the meters are more expensive to operate -- Nielsen charges stations for data from reports and will be compensated more for the more-detailed reports generated by the high-tech system -- local managers don't expect to get rich as a result.
Local managers acknowledge that while higher viewership numbers could translate into higher ad rates, none predicted that rates would jump as a result of the more accurate numbers. Some said they might adjust their rates accordingly to pay for the added costs of the survey.
Stoldal said the accuracy could lead to advertisers making more informed choices about where to spend their dollars.
"If I know exactly where my target demographic is instead of taking a shotgun approach, I may be willing to pay more for better placement," Stoldal said. "If an advertiser chooses to switch over, that may take away from the places where he's always been."
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