NBC Stations to Ditch Ratings

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It appears that the NBC O&O’s are moving more to the way it is done on the internet to sell ads.

Axios writes that the NBC stations will use impressions instead of traditional ratings points to measure an ad campaign’s effectiveness.

Why it matters: Local TV and radio are the last forms of media to still rely on traditional ratings points to measure the effectiveness of an ad campaign. Nearly every other type of media uses the cost per impression (CPM) to measure an ad's effectiveness.

According to the document, NBC/Telemundo owned-stations' sales teams will begin to move to CPM measurement "starting immediately."

"Consumers no longer only watch TV in a traditional linear fashion – Rating points only measure linear television," the document says. "Local TV needs to measure video viewing across all platforms."

Be smart: Most local TV stations have websites and apps that distribute content on multiple platforms besides live, linear broadcast, but an antiquated ratings system has made it hard for them to sell against any kind of digital viewership.

How it works: Broadly, by switching from ratings to impression-based measurement, media buyers can target more people. That's because there are a number of areas that are too small to create a ratings point, so agencies couldn't target long-tail TV audiences in more remote communities.

The big picture: Most agencies don't transact on impressions at the local broadcast level, says Kathy Doyle, EVP of Local Investment at MAGNA Global. "We were the first ones, and as far as I know. The other media agencies I've spoken to were talking about putting it in place for 2020, last I heard."

What's next: Expect other local television groups to move to impressions quickly. Once agencies begin transacting at the local level for one group via impressions, the entire ecosystem will follow.

TV executives have complained for years that the TV rating system is flawed and this could be a much better way to sell ads.

NBC is the first, but we doubt they will be the last.

Stay tuned….