Internet Measurement Methodology

There are several types of Internet audience measurement: panel-based, census-based, and
survey-based. Similar metrics can differ dramatically among the types of measurement because of the
wide variations in methodologies. The discrepancies among the measurement companies have caused
a great deal of friction, especially since the numbers are used to set advertising rates.
Panel-Based Measurement
Panel-based audience measurement tracks Internet users habits by developing and recruiting a panel
that is representative of the population of Web users, and then installing software on the panelists
computer for tracking. Participants receive several benefits for serving on the panel, like server-based
virus protection. Information is compiled about the households and participants in the panel to provide
a demographic profile and to assure adequate representation of all segments.
These companies project the usage and habits of the U.S. Internet population based on the data
gathered from their panelists. Therefore, the size and diversity of the panel are essential for projecting
statistically accurate numbers.
The most recognized online panel-based audience measurement companies are Nielsen//NetRatings
and comScore Inc.
Census or Server-Based Audience Measurement
Web site analytics companies provide measurements directly from a websites server or pages served
from a website. Television station log file data is analyzed by these companies, which track the
websites traffic using two methods. One method involves placing a Java script tag on the pages of the
website to send the traffic activity data back to the website analytics firm. The firm then produces
reports on the activity and traffic.
The second method allows the Web master to upload log files from the website. Data goes into a
software program that then produces summary reports.
Server-based measurement methods track almost 100% of traffic on the website but may include some
misleading activity such as internal traffic, duplication and spiders and robots. Filters can be set up to
remove some of the misleading activity but this requires constant maintenance and updating due to the
frequent new creation of spiders and robots.
An additional problem with accurate measurement is the possibility of inflated traffic data due to user
cookie deletion. Small text files called cookies are stored on the users computer to collect data that
identifies the user. Users are deleting cookies more frequently or rejecting them as part of their Web
browser settings. This means that since cookies identify unique users, cookie deletion can cause the
same user to be counted numerous times, therefore inflating the websites overall traffic. Cookie
deletion may be offset by users that reject cookies or multiple users accessing the same computer.
Recognized companies in this area are Omniture, Google Analytics, Visual Sciences and WebTrends.
Pros and Cons of Panel-Based and Server-Based Measurement
(Source: Editor & Publisher 10/11/07)
ADVANTAGES
Panel-Based
Panel participants can provide demographic data.
Panels may be better suited to eliminate duplicative traffic (home and work).
Panels are used by most large national advertisers and agencies, primarily for demographics.
Panels are a good option for measuring large sites with national audiences.

Server-Based
Tracks nearly 100% of actual website activity recorded at the server level, including workbased,
military and foreign activity as well as mobile devices.
Server log files provide detailed user behavior actions such as top pages and section and user
pathing through site.
Good option for sites not covered by panels.
Ad delivery and measurement are also server-based.
DISADVANTAGES
Panel-Based
Size and diversity of panel is imperative for accurate numbers.
Data may be volatile from month to month due to the number of panelists in survey.
Panels may report limited at-work activity, due to the number of at work panelists.
Panels may not adequately measure smaller or geographically narrow sites.
Panels may not track traffic from many of the new mobile devices.
Server-Based
User cookie deletion may inflate overall traffic numbers.
New spiders and robots can create misleading activity if not properly filtered.
One user accessing the Internet from multiple computers may create duplication
Does not provide audience demographic data.
Survey-based Measurement
Measurement companies involved in survey-based measurement of local Web usage are generally
companies whose primary measurement efforts are for other media. Two of the recognized local
survey-based companies, The Media Audit and Scarborough, originally measured newspapers and radio
and have added Internet usage to their surveys in recent years.
Survey sizes for these companies are generally large and demographically diverse. Surveys are
generally RDD telephone surveys with additional information in printed booklets. The disadvantage of
survey-based measurement for Internet usage is that the usage is based on the participants recall of
sites visited.
New Developments in Measurement
Nielsen Combining TV and Online Ratings
Nielsen announced a plan in December to accelerate the integration of its measurement of TV and online video
viewing. The plans call for Nielsen to complete the addition of Internet measurement to its National Television
Panel by Aug. 31, 2010.
The initiative, which is called "TVandPC," will create the industry's first single source measure of viewing to
both TV and online. Once the rollout is complete, Nielsen will be able to report online video viewing from 7,500
National People Meter homes, representing about 20,000 people and 12,000 computers.
The new TVandPC service will serve as the foundation for a number of Nielsens cross platform measurement
initiatives, including the ability to report an "extended screen" rating for programming and commercial content
that air on both TV and online. According to Nielsen, Extended Screen Evaluation Data will be delivered by
Dec. 31, 2010 and Extended Screen data will be included in the TV ratings currency in Feb. 2011.