Have you ever been browsing for what to watch and thought about how networks actually decide on their programming? Have you seen certain ads from brands and wondered why you’re seeing them? These decisions are probably being driven in part by Nielsen ratings. So, what exactly are Nielsen ratings and what do they measure? Here’s a quick overview to help understand how our ratings data is influential in the programming and ads you see on screens across the U.S.
What are Nielsen ratings?
Nielsen ratings are a standard measuring metric shaping the television and streaming industries. These ratings offer valuable third-party insights into viewership and audience engagement by providing metrics of how many people are watching specific programs and their interactions with various types of content. Nielsen ratings help U.S. networks, advertisers and content creators make informed decisions regarding programming, marketing strategies and audience targeting.
Ratings are the percentage of the (TV-owning) population that watched a particular program or commercial. There are many variations: A rating may be based on live viewing only, live + same day playback, live + 3 days, live + 7 days, or even live + 35 days.
There are also ratings for households as well as specific persons-level demographic groups. Nielsen publicly publishes household ratings within the Linear TV Top 10 topline rankings every week.
Impact of Nielsen ratings on programming
By offering objective measurement of viewership and content consumption habits, Nielsen ratings help networks and producers evaluate the performance of their content and set industry-standard advertising rates. This information is significant not only for determining a show’s success but also plays a pivotal role in shaping programming decisions and schedules across the industry.
High ratings often lead to series’ renewals, while it’s possible that low numbers can result in cancellations or significant changes to a series. Having strong supporting data insights on viewership allows networks to curate content that aligns with viewer preferences and enhances audience engagement.
Setting the standard in advertising
Advertisers depend on Nielsen ratings to make informed decisions on budget allocation and set industry-wide advertising rates.
High ratings signify a larger audience, making specific programs more attractive for advertising placements. Consequently, this data affects ad pricing and helps advertisers effectively target their campaigns, ensuring their messages reach the right viewers at optimal times.
How are Nielsen ratings calculated?
Nielsen ratings data is developed through a combination of panel data and big data. The advantage of integrating panel and big data sources together is that it improves overall data quality to ensure more robust data that captures even the smallest audiences, and delivers a reliable view of content performance. Learn more about the methodology of how Nielsen ratings are calculated and how Nielsen is ringing in a new era of measurement starting with the Fall 2025 TV season.
Nielsen ratings in the era of streaming
As streaming platforms are a growing part of the entertainment landscape, measuring viewership has become increasingly complex. Unlike traditional broadcast television with scheduled program airtimes, streaming presents unique challenges. Viewers access content on various devices, on their own schedule, oftentimes on multiple streaming platforms which complicates the capture of accurate viewing habits and preferences.
Nielsen offers comprehensive streaming ratings that account for both live and on-demand viewing across multiple platforms. Nielsen uses advanced technology and methodologies to not only track who is watching but also provide insights into viewer engagement and demographics, empowering content creators and advertisers with data necessary to reach the right audiences.
When comparing traditional television ratings to streaming ratings, the differences become evident. Traditional Nielsen viewership ratings focus primarily on linear viewing, capturing data from specific time slots and audiences. In contrast, streaming ratings encompass a broader range of viewer behaviors, including binge-watching and time-shifted viewing, to reflect the on-demand nature of modern consumption. This comparative analysis highlights how Nielsen ratings are evolving to provide a more comprehensive understanding of audience behavior in a rapidly changing media environment.
Make confident business decisions
Nielsen is relied upon as the leading measurement provider for TV ratings, holding current deals with all major broadcasters, streamers and professional sports leagues — and Big Data + Panel was widely adopted by the vast majority of broadcasters and agencies as currency for the 2025 Upfront.
Through Nielsen’s Big Data + Panel measurement, we offer media content producers and advertisers a suite of solutions to be confident in the strategies to pursue and audiences they want to engage with.
Nielsen’s Need to Know reviews the fundamentals of audience measurement and demystifies the media industry’s hottest topics. Read every article here.
