What impact is the internet having on TV?
   It’s a question that advertisers, media planners and buyers have been trying to figure out since the internet took off as a viable medium a few years ago.
   Has the internet taken viewers away from TV? Has it caused viewers to spend less time with TV?
    Or, are TV viewers paying less attention because they are online at the same time? And are ad dollars being wasted on one medium because viewers or users are already seeing it on the other medium?
    Nielsen has created a Convergence Lab that is setting out to answer some of those questions.
    "It all started back two years ago at a Procter & Gamble meeting, when they asked what we can do to answer questions about the internet versus television, how much the internet overlaps with TV, and how much are they using both mediums," says David H. Harkness, senior vice president in charge of planning and development for Nielsen Media Research.
    "Are internet users, for example, light, medium, or heavy-users of TV?"
   Numerous studies have been conducted that have each seemingly resulted in answers that contradicted the study that came before.
    The Convergence Lab, which should begin releasing initial findings by March, is the first study that measures internet usage and TV viewing from the same homes.
    That’s important because it eliminates assumptions about how one medium impacts the other.
    It’s called a single-source study and is widely considered by media researchers to be the ideal way to measure multimedia, and one that has led to discussions about data fusion, or the merging of two separate research studies into one.
   Nielsen, best known as the source for television ratings, will place its People Meter, which electronically measures TV viewing, in a home along with its Nielsen/NetRatings system that tracks internet usage on PCs.
    "There are some immediate learnings about the way the internet is impacting television usage and the way the internet and TV together can build brands and ultimately sell product," says David Ernst, chief knowledge officer at TN Media.
   "It means getting information from people in the same households, in such a way that we have a lot of confidence that we will have a better understanding of how the two media work together."
   The impact of the findings should ultimately allow advertisers and media planners to develop better media plans that result in advertising cost-savings.
   That’s because the data will provide insight into duplication, meaning the audiences that are exposed to both media. Presumably, that will lead to cutting out costs for ads that result in too much duplication and will probably lead to some shifting of dollars as well.
   "Some of the TV folks we’ve talked to have media buying guidelines," says Nielsen’s Harkness.
   "Some have made reach and frequency guestimates that have not been tested, so this absolutely has applications for media planners and buyers."
   Data from the Convergence Lab should also provide a better understanding of how use of one medium drives usage to another.
    In other words, if a website is advertised on television, does it lead consumers to go online and get more information or buy a product?
   "More and more, our clients and planners need to build plans that don’t look at the internet in isolation," says Ernst. "Since TV is still the driver in many media plans, it’s important to understand how we can drive consumers to websites."
   Nielsen’s Convergence Lab also sets the groundwork for what many people assume will be an increasing integration of the TV set with the PC.
   "As we move forward, you’re talking about two elements that are going to converge in the same box. This gives us the opportunity to get a glimpse into that future," says Ernst.
    Nielsen’s Harkness says: "We believe integration of the internet with the TV set is going to have enormous potential when it happens. That potential will accelerate with interactive capability, when you can virtually click-through any TV content.
   "That has enormous possibilities for developing content but, more importantly, new business models for TV."
    Nielsen’s Convergence Lab sample is now in just under 200 homes but should go up to about 250 by the end of the year.
    Jack Loftus, a spokesman for Nielsen, says the sample will increase depending on the data that advertisers ultimately need from the study.

-Kevin Downey is a staff writer for Media Life.

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