So everyone knows that Google has not only revolutionized how consumers are marketed to, but also how the effectiveness of advertising is measured. When consumers transact at the location of the advertisement (i.e., at the online ad or keyword bought), it is easier to measure how effective that ad is. However, television advertising remains the largest single channel and despite upstarts like OTX taking market share (just bought by French research company IPSOS in January, press release below) the efficacy of TV ad's are still measured by relatively low tech set-top boxes administered by Nielsen. But is this really an unbiased statistical survey method? Even with a team of Stats PhDs and MBAs, is it possible to accurately capture the number of young adult viewers because of the transient nature of this demographic? (Have you ever seen a 20 something with a Nielsen box? I haven't). So perhaps the refrain of Fox sales executives of the years that their ads on their network are unfairly cheap has some merit after all. Eventually, a new system will replace the set top box -- perhaps with TV over the internet -- and ad rates will converge to actual viewership, but until then does News Corp trade at a discount to its intrinsic value?
http://www.ipsos.com/sites/www.ipsos.com/files/PR_English_version.pdf
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