Tuned In

Which TV Viewers Should Count?

 

Watching Fringe online? You may as well be watching in a parallel universe. / FOX
FRINGE: Over There, Olivia (Anna Torv, R), Lincoln (guest star Seth Gabel, C) and Charlie (guest star Kirk Acevedo, L) arrive at a mysterious crime scene in the FRINGE episode "The Plateau" airing Thursday, Oct. 7 (9:00-10:00 PM ET/PT) on FOX. ©2010 Fox Broadcasting Co. CR: Liane Hentscher/FOX

 

It’s a common and understandable myth that TV shows stay on the air by getting as many viewers as possible. They don’t. In commercial television, shows stay on the air by making money, something that relates to, but does not correlate directly to, getting as many viewers as possible. If you’re a network that airs commercials, you make money chiefly by getting as many viewers that advertisers are willing to pay to reach as possible.

Figuring out how those viewers are, and how to count them, is probably the biggest challenge networks have today in keeping your shows on the air. If you’re over 50, do you matter? (Probably not where advertising is concerned.) If you watch on Tivo and skip the ads? (I am part of the problem.) If you watch TV online? And does anyone even know you’re watching?

New York magazine’s Joe Adalian has an interesting story looking at the conundrum for networks, advertisers and Nielsen: it’s not so easy anymore to even say how many people are watching a show. The more people time-shift and watch shows online, the harder it is to say the next morning whether a show is a hit, since people may watch the program at any point over the coming week, or later.

As Adalian points out, nowadays the live airing of an episode, especially one with a tech-adopting audience, may garner well less than half of its eventual audience. Yet it’s that morning-after number that still creates much of the perception of whether a show is a hit, and creates the lasting impression of the size of series’ respective audiences. (One eye-popping stat: over the week and on various platforms, Mad Men’s audience rises from under three million to over six million.) Nielsen, he writes, is trying to catch up to Hulu and company by measuring how many people watch shows online, which it will start tracking in the spring.

But counting viewers is one thing; valuing them is another. As it is, we have access to “live plus seven ratings”—the number of viewers who watch live plus the number who watch on DVR up to a week later—though these figures take weeks to arrive. But should we pay attention to them? Maybe when it comes to assessing a show’s cultural reach.  When it comes to selling ads, though—and thus, to a show’s odds of staying on air—advertisers have been willing to pay for only live plus three days. (The thinking, in part, is that some ads have a shorter shelf life—and come on, how many ads do you think I’m watching on Tivo?)

And online? Anyone’s guess—and you could argue that online ads can theoretically be better targeted and more engaging than TV ones—but for now, advertisers pay much less for them, and there are fewer of them. So if you watch Fringe on Hulu, you may love the show as much as a live viewer, but you’re not doing it as much good. (Though more than if you missed it altogether.)

Bottom line: we now have much different metrics for whether a show is a “hit” (in terms of reach and influence among an audience) and whether its a “hit” (in terms of paying for itself and staying on air). It’s something I’ll increasingly have to think about as a critic. In practical terms, it’s important for me to know whether a show can survive. But if I’m assessing its cultural influence and clout, why should I care how much the show is worth to Procter and Gamble?

 

Blue Bloods: lots of viewers, but not the kind advertisers want. / CBS
"Officer Down" -- Blue Bloods, Fridays, (10:00-11:00PM ET/PT) on CBS Television Network. Photo: Craig Blankenhorn/CBS©2010CBS Broadcasting Inc. All Rights Reserved #105 FOR EDITORIAL USE ONLY

 

Of course, we’ve had different metrics for audience vs. financial hits for a while now, the most famous of which is demographics, especially age. Advertisers pay most for audiences aged 18 to 49, so that rating is what determines whether a show makes it. As Brian Lowry notes in Variety, though, the average viewer ages of most big networks is now older than that demographic. Blue Bloods is a big new hit in terms of eyeballs, but it’s relatively anemic in terms of ad demos—it’s average fan is over 60 years old. (Tom Selleck is the new Andy Griffith!)

So should networks value their older viewers more? Well, maybe in a moral sense. But the problem is, they can’t simply will advertisers to pay more for an older audience.

Now, advertisers’ reasons for targeting younger viewers may or may not be wrongheaded. I’d say it’s a little of both. It’s logical, if not exactly fair, to pay more to reach viewers (like the youngest adults) who watch relatively less TV; if a 60-year-old watches twice as much TV as a 25-year-old, it’s easier for me to find a cheaper program (say, the nightly news) to reach him on, whereas I have limited options for Junior. The notion that younger adults develop hardwired brand preferences seems more like pseudoscience (yes, a younger consumer has more years to live if you hook them early, but I suspect consumers at every age are more fickle than this old Madison Avenue belief assumes). But until and unless TV networks can persuade advertisers otherwise, they can only make money off what someone will pay for.

This all creates an interesting dilemma for those of us who write about TV: do we judge hits on the basis of the criteria advertisers should use, or on the criteria advertisers actually do use? As for you, the viewer, for now here’s the best way to keep your favorite show on the air: be a young person, and watch TV like an old person—live, with all the commercials.

Related Topics: Advertising, blue bloods, Business News, TV Ratings, Advertising, TV Ratings, Uncategorized
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  • tifflovestv

    To your question, “do we judge hits on the basis of the criteria advertisers should use, or on the criteria advertisers actually do use?”, how about providing critiques based on the quality of the show itself? I’m not naive enough to think that quality shows are always guaranteed hits and stay on the air (lately, I’ve been missing HBO’s Rome), but I look to your blog to inform me on good shows that I should pay more attention to. If I eventually lose out because the show is canceled, at least I’ve had a few weeks/one season of quality TV.

  • http://twitter.com/poniewozik James Poniewozik

    Oh, believe me, my quality-elitism knows no bounds! Most of the shows I follow regularly here I choose on the basis of quality (or at least my interest in them), not ratings. But to some extent people who write about TV (I mean not just critics, like me, but feature writers, business writers, pop-culture columnists) also try to cover shows that have a lot of cultural reach and influence, and how to measure that is increasingly complicated.

  • The Hoobie

    I was happy to read in Adalian’s article that watching multiplay airings of a show (whether later the same day it’s first aired or later in the week) means that I “count” as a viewer of Mad Men and Rubicon because the ads shown in the re-airings are the same as in the first airings.

    Because we are sucky parents who seem to be constitutionally unable to get our oldest to bed before 10:00 PM, we can only watch live, grown-up TV if it’s after 10:00 our time. But I love watching live TV; I’m very much a next-day water-cooler and TV-blog gabber, not to mention that topical shows like The Daily Show just… aren’t as funny 3 days later.

    So I’m really grateful to AMC and Comedy Central that they re-air their first-run shows later that same night; I wish more networks did that. (Project Runway, for example, I have to watch On Demand or online days later—I hate that I have to avoid the fantastic Tom & Lorenzo’s blog for days until I can see the show.)

    I’ve noticed that Mad Men and Rubicon seem to have scored some high-end advertisers (BMW, Apple). Hope that helps. (Having kids = sharp decline in disposable income, so I only wish we could help support the shows by buying Apple products more than twice a decade. The commercials certainly do make me covet iPads, etc, though; does coveting help?! :-))

  • olivececile

    I think the whole TIVO thing is interesting. I watch TV almost exclusively through my TIVO – even hockey games we TIVO and then start 15 minutes in so we can skip past some of the commentary we don’t care about. But I honestly think I pay more attention to commercials that way (at least eye-catching ones). When I watch TV at a regular pace, I mute the commercials and look away – I do the crossword, grab a snack, whatever, because I know I have a couple minutes to kill. When I TIVO, I fast-forward through the commercials, which requires that I look at the screen so that I don’t run past my show. I don’t hear all the gobbledygook, that’s true, but advertising is mostly about planting a brand in your head, so that the next time you buy dish detergent you’ll feel disposed toward the one that seems familiar, or new, or what have you. Perhaps I’m grasping, but I do feel just as aware of advertising, if not more so, since I got the TIVO. I wonder what kind of data studies on how people watch ads nowadays has brought up.

    As for online viewing – any show that doesn’t make episodes available online legally is crazy (with the exception of pay cable). If network TV can’t find a way to be profitable with the nine zillion ways they have to get their show to me, market it, and cross-promote, then they should get out of the money-making business (TM Sports Night).

    One last thing and then I’ll rant no more – I feel like I heard recently that overall viewership is lower now than it was, say, 30 years ago, at least in terms of how many viewers a “hit” show might have. I cannot cite my source though – anyone know if that is true? It seems like the practice of not factoring in the ways in which people actually watch TV eventually leads to putting on shows no one wants to watch (as evidence, look at this entire new season of blah). Again, I may be whistling Dixie, I am not an expert in the ways of TV decision-making, this is just how it feels to an interested observer.

  • otterface

    I’d be curious to know about one more factor: DVD and iTunes sales of episodes. That, it seems to me, is the one place where demographics really don’t matter — if someone’s paying $30 for a season of “Lost”, it doesn’t matter if they’re 18 or 60. And while I’m guessing DVD sales aren’t a huge factor for most shows, it seems that for at least some of them — HBO’s shows and “Band Of Brothers”-type miniseries, “Glee”, “Lost”, “BSG” — the market for DVDs should be a factor in networks’ calculations.

  • twocee2

    If we look at ratings solely as a basis for networks to value their shows to advertisers, why should DVR viewers be counted at all? I think it safe to assume that at least 95% of viewers who watch a show via their DVR do not watch any of the commercials during that show. My parents, who watch ALL TV time-delayed through their DVR, do it for specifically that reason. The only time they see commercials is when they watch the local news during dinner, or when they come to my house.

    Online viewers on the other hand, are forced to watch the ads embedded in the stream in the same manner that live TV watchers are. I don’t know about Hulu, but any stream I’ve watched from the networks disables the FF button during the ads. VH1 somehow knows when you switch windows and are not physically watching their embedded commercials, and will stop the ad until you flip back to the window. Even ESPN has figured out how to embed ads (for ESPN usually) into their 360 streams.

    When you combine the fact that the advertisers’ coveted age range is probably more likely to watch online than live, and the fact that technology allows advertisers to force people to sit through embedded commercials, it seems to me that the networks need to rally around the online component of viewing more than the DVR component, when selling something as a “hit.”

    They also probably need to re-define what a “hit” is in today’s culture. MASH is never going to happen again.

    For the record – I watch almost all of my TV “live.” I’d be a network’s dream if they would let me have a Neilson box. :-)

  • The Hoobie

    Great thoughtful comment, olivececile!

    When we watch shows On Demand, I will often stop fast-forwarding through a group of commercials if a particularly good one comes on.

    I guess one easy-for-me-to-say piece of advice I’d have for advertisers in this new era is to just make good, arresting commercials (so, approximately 2% of this year’s crop of Super Bowl commercials).

    With sincere apologies to James for making him have to hold this comment and click through all of these links—sorry!—here are three commercials I will stop fast-forwarding to watch:

    http://bit.ly/a36z0e

    http://bit.ly/9bSg7K

    http://bit.ly/bML3cZ

  • johnchoiniere

    A serious question (that I also just asked on twitter to both you and Sepinwall) – since Hulu is network-owned, why not change the structure of the ads on it so that for any given show, the online ads match the live-viewing ads? Wouldn’t that greatly simplify how to sell an online viewer count to advertisers when setting ad rates? It can’t be hard technologically to count how many plays a video get (youtube does it quite easily), so NBC could take a show like, say, Community, and tell advertisers:

    “This show averages a 1.8 rating/6 share among 18-49 y.o. viewers, and gets another 1.5m views [commenter's note: I have no idea what a reasonable number is here] within the first week online between nbc.com and hulu.com. Your ad will run as the first commercial in the first break both on the air and for all online viewings.”

    I realize that they can’t know for sure the demographics of Hulu viewers, but a reasonable assumption can be made, I think, that a vast majority will fall into the key demo, and that the various breakdowns (gender, etc) will pretty closely mirror the live audience.

    I guess I don’t know the main reason most people watch TV online rather than live, but speaking personally, it’s never to avoid commercials; it’s only because either (1) I was too busy to watch it live and I don’t own a DVR, or (2) it was so good I want to re-watch it. Maybe extending the commercial breaks would drive away some viewers, but I think most would stick around. I don’t know. Thoughts?

  • http://twitter.com/poniewozik James Poniewozik

    A few thoughts, some better informed than others:

    * Reportedly some (very high-rated shows) actually command more per viewer for ads on Hulu than on TV: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=atKGiQOMco.Y

    * However, currently there aren’t as many ads at network sites, or sites like Hulu–a consideration, I suppose, of balancing revenue vs losing audience. The sites do seem to carry more and longer ads than they used to; I suspect this would continue to be the trend, on the frog-in-boiling-water principle.

    * I don’t think you’d want to ensure that online ads match those run on-air, since one of the advantages of online should be targeting and customizability.

    * Also, valuing the online audience depends on accurately measuring it–hence Nielsen moving to start measuring it, among other things.

    In general, I think online should be a growth area for TV revenue–but in terms of measuring a “hit” and commercial viability right now, it’s not there yet.

  • The Hoobie

    One minor thing I wanted to mention: I really wish networks would consider all the varied demographics that watch their shows in working with advertisers to decide which ads to run during which shows: I can’t count how many times I’ve had to leap up during The Daily Show to grab the remote to mute the sound or switch away from a loud, garish ad for a torture-porn horror movie.

    I mean, I’m sure the 19-year-old frat boy contingent is a big and lucrative TDS demographic, but can’t they run the torture-porn horror movie ads during Tosh.0 or somesuch and instead run ads during TDS that might appeal to all the demographics that watch it? It’s not even a matter of going for the lowest common denominator; there’s some good common ground here. Even as a representative of the 40-year-old boring suburban working mom demographic,hey, I buy beer and the occasional Apple product, too.

    I read somewhere that Nancy Pelosi watches The Daily Show every night, and I’m going to make a WAG that she isn’t a big torture-porn movie fan, either…

  • ll6747

    “As for you, the viewer, for now here’s the best way to keep your favorite show on the air: be a young person, and watch TV like an old person—live, with all the commercials.”

    but this only works if you have the Nielsen box!

    My daughter has wondered why advertisers don’t create some kind of banner – using single frame advertising spaced out in real time that wouldn’t be noticed by the real time viewer- that would sync to the FF of the DVR and show the advertisers name across the bottom of the screen.

  • ferociouswalrus

    Okay, sure, they can charge more for live TV ads, but if I don’t have a Nielsen box, they don’t know I’m watching at all. In fact, it seems to be an increasing internet trend to say that if you really want to try to “save” a show that you like but are afraid will be canceled, you should watch it on Hulu or iTunes rather than live, because if you don’t have a box that’s the only way the network will know you watched it.

  • The Hoobie

    Sorry if the answer to this question is well known or I am just dense (not that those options are mutually exclusive, har!), but don’t cable providers and, by extension, cable networks have ways other than Nielsen boxes to compile data on viewers?

    I know that when I hit our On Demand button, I’m always being shown countdowns like “the top 10 most-viewed X On Demand this week.” I’d imagine that just through the magic of the cable box, Comcast, say, could gather some pretty specific data on viewing habits (if only for On Demand). Or are even such OD countdowns Nielsen-based and I am just wistfully looking for ways for my eyeballs to “count” even though we don’t have a Nielsen box? :-)

  • tuchmanmarshman

    I agree entirely. I count Breaking Bad, and Mad Men as my two very favorite shows airing now. Yet, I don’t think i’ve seen either show in its first airing for a couple years.

    Generally, it’s due to other shows being on (mainly whatever HBO has on at the time), but I find the 3 airings in a night that AMC offers to be incredibly nice. Depending on how busy my night is, I know I have the luxury to watch it either an hour later, or a late 1 AM showing, and I find that to be really wonderful.

  • The Hoobie

    I’ve recently come to the (sad?) realization that I’d willingly surrender all manner of privacy rights if I could help keep Rubicon on the air.

    I mean, I’d be happy to let not only Comcast but also Dick Cheney and even Unfrozen Zombie J. Edgar Hoover closely monitor my TV viewing habits if it meant that I could help Rubicon get renewed. Is that wrong?!

  • pechisbeque

    I live in Europe. Maybe ten years ago a couple of people from our broadcasters would negotiate with the American ones to buy content based on the ratings and then show it over here. Nowadays, over the internet, anyone can get whatever content they want however they want. It is easy enough.

    The broadcasters are loosing a huge opportunity by not making their content available worldwide.

    Last Winter iTunes made the last season of Lost available over here the morning after it was broadcast on ABC. I loved it! The season passes are ridiculously expensive over here (e.g., House Season 6 HD for $76!!!) but I bought it to encourage similar initiatives. This Winter nothing similar was done.

    I would gladly pay for a subscription to watch any of the shows you comment every day on your blog. If it is technologically possible, I do not want to watch Parks & Recreation, Terriers, Sons of Anarchy, or The Pacific, for example, one or more years later and dubbed in whatever of the many languages from Europe.

    I’m sure I’m a minority audience but isn’t that the main purpose of the internet? To indulge the wishes of the endless minorities? Shouldn’t I also count as a TV viewer?

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