Arthur C. Nielsen and the invention of "Market Share"
Arthur C. Nielsen founded the AC Nielsen Company in August 1923[15][16] with the idea of selling engineering performance surveys. It was the first company to offer market research.[17] The company expanded its business in 1932 by creating a retail index that tracked the flow of food and drug purchases. This was the first retail measurement of its kind and for the first time allowed a company to determine its "share" of the market—the origination of the concept of "market share"[17] Arthur C. Nielsen is credited with coining this business term.
Radio and television
In 1936, Arthur C. Nielsen acquired the Audimeter, which measured which radio stations a radio had been tuned to during the day. After tinkering with the device for a few years, the company created a national radio rating service in 1942.[18] The company collected information on which stations radios were tuned to in one thousand homes. Then, this survey data was sold to manufacturers who were interested in the popularity of programs and demographic information about listeners for advertising purposes. This was the birth of audience measurement that would become the most well-known part of Nielsen's business when applied to television.[18] Today, these are commonly referred to as "Nielsen ratings".
The company began measuring television audiences in 1950, at a time when the medium was just getting off the ground. Just as with radio, a sampling of homes across the U.S. was used to develop ratings. This information was collected on a device that was attached to a television that recorded what was being watched. In 1953, the company began sending out diaries to a smaller sample of homes ("Nielsen families") within the survey to have them record what they had watched.[17] This data was put together with information from the devices. This combination of data allowed the company to statistically estimate the number of Americans watching TV and the demographic breakdown of viewers.[17] This became an important tool for advertisers and networks.
In the 1980s, the company launched a new measurement device known as the "people meter". The device resembles a remote control with buttons for each individual family member and extras for guests. Viewers push a button to signify when they are in the room and push it again when they leave, even if the TV is still on. This form of measurement was intended to provide a more accurate picture of who was watching and when.[19]
In July 2008,[20] Nielsen released the first in a series of quarterly reports, detailing video and TV usage across the 'three screens' – Television, Internet and Mobile devices. The A2/M2 Three Screen Report also includes trends in timeshifted viewing behavior and its relationship to online video viewing, a demographic breakdown of mobile video viewers and DVR penetration.
On September 30, 2016,[21] Nielsen made its Digital Content Ratings available in full syndication for clients.
On September 9, 2016,[22] Nielsen announced that it would retire its paper TV diaries by mid-2017 and provide all electronic measurement in its local television ratings.
Private equity
Nielsen was acquired by the Dun & Bradstreet Company in 1984.[23] In 1996, D&B divided the company into two separate companies: Nielsen Media Research, which was responsible for TV ratings, and AC Nielsen, which was responsible for consumer shopping trends and box-office data.[24] In 1999, Nielsen Media Research was acquired by the Dutch publishing company VNU (Verenigde Nederlandse Uitgeverijen).[25] VNU later acquired AC Nielsen and recombined the two businesses in 2001. In between, VNU sold off its newspaper properties to Wegener and its consumer magazines to Sanoma. The company's publishing arm also owned several publications including The Hollywood Reporter, Adweek and Billboard magazine. VNU combined the Nielsen properties with other research and data collection units including BASES, Claritas, HCI and Spectra. VNU also acquired companies that added to its measurement capabilities.
Becoming a public company
Nielsen was a private company from 2006 through 2011. On January 25, 2011, the company listed itself on the New York Stock Exchange and issued an initial public offering (IPO) that raised $1.8 billion in the largest private equity-backed U.S. IPO since 2006.[26]
Mergers, acquisitions, strategic alliances and divestitures
2004
Nielsen began a joint venture called AGB Nielsen Media Research with WPP Group's AGB Group, a European competitor which provides similar services.[27]
2006
VNU acquired a majority stake in Buzzmetrics, a company which measures consumer-generated media online. Under the new ownership, Nielsen bought the remaining shares of the company in 2007.[28] In the same year, Nielsen acquired Telephia, which measures mobile media,[29] and Bilesim Medya, a Turkish advertising intelligence firm.[30] VNU was acquired by a group of six private equity firms: the American Kohlberg Kravis Roberts
2004
Nielsen began a joint venture called AGB Nielsen Media Research with WPP Group's AGB Group, a European competitor which provides similar services.[27]
2006
VNU acquired a majority stake in Buzzmetrics, a company which measures consumer-generated media online. Under the new ownership, Nielsen bought the remaining shares of the company in 2007.[28] In the same year, Nielsen acquired Telephia, which measures mobile media,[29] and Bilesim Medya, a Turkish advertising intelligence firm.[30] VNU was acquired by a group of six private equity firms: the American Kohlberg Kravis Roberts, Thomas H. Lee Partners, Blackstone Group, Carlyle Group and Hellman & Friedman, and Dutch equity firm AlpInvest Partners[31] for £5bn. In the same year, the group hired David L. Calhoun, formerly of General Electric, as CEO. He renamed VNU as The Nielsen Company in 2007. VNU sold its business publications division for €320m (£210m) to venture capital group 3i
2007
In June, Nielsen acquired Telephia, a provider of syndicated consumer research to the telecom and mobile media markets.[33]
2008
Nielsen acquired IAG Research which measures viewer engagement with TV commercials.[34] The same year, Nielsen made a strategic investment in NeuroFocus, a California firm applying neuroscience brainwave techniques for consumer research. The firm was later fully acquired by Nielsen in 2011[35] In 2009 and 2010, Nielsen sold its business magazines; its well-known entertainment properties went to the new company e5 Global Media.
2009
Nielsen acquired The Cambridge Group, a management consulting firm headquartered in Chicago. The firm researches latent and emerging consumer demand.
2010
In June, Nielsen paired with McKinsey & Company to create the social media consulting company NM Incite.[36][37] NM Incite had operations in 13 global markets, including: US, UK, Germany, Spain, Italy, Australia, New Zealand, China, Japan, India, Brazil, Canada and Korea.[38]
2011
In August, Nielsen acquired Marketing Analytics, Inc.
2012
In February, Nielsen launched The Demand Institute in collaboration with The Conference Board. The Demand Institute is a non-profit, non-advocacy organization. In July, Nielsen acquired the advertising tech company Vizu. The acquisition was made so that Nielsen can better analyze the effectiveness of online advertisement.[39] In November, Nielsen acquired SocialGuide, a provider of social TV measurement, analytics and audience engagement solutions.[40] On December 17, 2012, Nielsen disclosed that it would acquire Arbitron, a company primarily involved in radio audience measurement, for $1.3 billion. The successful acquisition was completed on September 30, 2013.[41]
2013
On June 17, 2013, Nielsen announced that Onex Corp (TSX: OCX) had completed the acquisition of Nielsen Expositions for $950 million in cash consideration. Nielsen Expositions operated tradeshows in the United States. The company was renamed Emerald Expositions Inc. after the transaction.
2014
On February 3, 2014, Nielsen announced the acquisition of Harris Interactive, Inc. (NASDAQ:HPOL). This allowed Nielsen to take ownership of The Harris Poll.[42] Later on February 26, 2014, Nielsen acquired Nexium, a retail in-store execution and sales analytics company.[43] On September 18, 2014 Nielsen announced the acquisition of Indicus Analytics Pvt Ltd. On October 8, 2014, Nielsen acquired Affinnova, an international media and marketing research firm. The Affinnova team joins Nielsen's legacy BASES team to form Nielsen's Innovation Practice area.[44]
2015
On January 22, 2015, Nielsen acquired Brandbank, specialized in the process of digitally collecting, managing and distributing FMCG product and brand image content for retail syndication across in-store, print promotional and e-commerce platforms.[45] On March 4, 2015, Nielsen announced the acquisition of Exelate, a provider of data and technology to facilitate the buying and selling of advertising across programmatic platforms.[46] On May 27, 2015, Nielsen acquired Innerscope Research, which specialized in consumer neuroscience using biometrics, eye tracking and facial coding. Nielsen renamed its combined offering as Nielsen Consumer Neuroscience, and named Carl Marci as Chief Neuroscientist.[47]
2016
On March 3, 2016, Nielsen acquired Pointlogic, in marketing decision support systems.[48] On March 10, 2016, Nielsen acquired Mumbai-based mobile usage measurer Informate Mobile Intelligence for an undisclosed amount.[49] On June 21, 2016, Nielsen acquired Repucom, a sports measurement, evaluation and intelligence company based in Stamford, Connecticut.[50] On December 20, 2016,[51] Nielsen announced its agreement with Tribune Media Company to purchase Gracenote, a provider of media and entertainment metadata.
2017
On January 5, 2017,[52] The Carlyle Group acquired Claritas from Nielsen. On January 20, 2017,[53] The NPD Group acquired the US assets of Nielsen BookScan. On January 23, 2017,[54] the Stagwell Group announced that it acquired Nielsen's Harris brand and the Harris Poll through its Stagwell Media LLC. On February 1, 2017,[55] Nielsen completed its acquisition of Gracenote. On February 23, 2017, Nielsen acquired Rhiza, Inc., a Pittsburgh-based media and consumer analytics software firm.
2019
In December 2019, Nielsen music data business was sold to Valence Media (then parent company of Billboard, another former Nielsen business). The transaction includes Nielsen Broadcast Data Systems, Music 360, and Nielsen SoundScan.[56][57]
2021
On March 5, 2021, Nielsen Holdings announced the completion of sale of Global Connect business (the former AC Nielsen) to private equity firm Advent International.[4]
On July 8, 2021, Nielsen acquired TVTY, a TV attribution provider and ad monitoring company based in Paris, France, for an undisclosed amount.[58]
Verenigde Nederlandse Uitgeverijen
Verenigde Nederlandse Uitgeverijen (VNU, literally "United Dutch Publishers", founded 1964) was a Dutch publishing company with products including European consumer magazines, Dutch regional newspapers, business publications in the European and North American markets, and educational publications.
In 1997, VNU acquired the directory publishing business of ITT Sheraton (ITT World Directories) for $2.1 billion; the business was renamed VNU World Directories.[59]
VNU acquired Nielsen Media Research, part of the former AC Nielsen Company, in 1999.[60] It was the owner of the Hungarian business magazine Figyelő in the 1990s.[61]
In 2000, VNU acquired Miller Freeman, Inc. from United News & Media for a reported price of $650 million.[62]
