Arthur Nielsen
Encyclopedia
Arthur Charles Nielsen, Sr. (September 5, 1897June 1, 1980) was an American
market analyst
who founded the ACNielsen company
.
), where he received a B.S., summa cum laude in 1918. He was a member of Tau Beta Pi (engineering honor society), the Sigma Phi Society
and a captain of the varsity
tennis
team from 1916 to 1918. He subsequently served in U.S. Naval Reserve.
company in 1923, and in doing so advanced the new field of market research
. This involved: (1.) test market
ing new products to determine their viability prior to costly mass marketing
and production; and (2.) measuring product sales at a random sample
of stores to determine market share
. Careful statistical sampling was crucial to this process. The techniques developed by Nielsen were especially important for the efficient operation of a market
prior to the introduction of computerized digital networks that in the 1990s enabled continuous and comprehensive monitoring of sales by product retailers. Nielsen was also a pioneer in developing methods of measuring the audience of radio and television broadcasting programs, most notably the Nielsen ratings
.
Nielsen inaugurated a National Radio Index for broadcasters and advertisers in 1942, followed by a television ratings service in 1950. By the time of his death, the company's revenue was US$ 398 million annually.
in 1971. The University of Wisconsin awarded him an honorary Doctor of Science (ScD) in 1974. Nielsen was appointed a Knight of the Order of the Dannebrog
, Ridder af Dannebrog (1961) by the nation of Denmark
.
Nielsen and his wife donated the Nielsen Tennis Stadium to the University of Wisconsin–Madison. In 1990, the A.C. Nielsen family made a donation to UW-Madison to create a full-time MBA program specializing in market research. It is the only full-time market research program in the United States.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
market analyst
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
who founded the ACNielsen company
ACNielsen
ACNielsen is a global marketing research firm, with worldwide headquarters in New York City. Regional headquarters for North America are located in Schaumburg, Illinois. As of May 2010, it is part of The Nielsen Company.-History:...
.
Background
Arthur Charles Nielsen was born in Chicago, Illinois. He was of Danish descent. Nielsen was educated at University of Wisconsin (now University of Wisconsin–MadisonUniversity of Wisconsin–Madison
The University of Wisconsin–Madison is a public research university located in Madison, Wisconsin, United States. Founded in 1848, UW–Madison is the flagship campus of the University of Wisconsin System. It became a land-grant institution in 1866...
), where he received a B.S., summa cum laude in 1918. He was a member of Tau Beta Pi (engineering honor society), the Sigma Phi Society
Sigma Phi
The Sigma Phi Society was founded on 4 March 1827, on the campus of Union College as a part of the Union Triad in Schenectady, New York.It is the second oldest Greek fraternal organization in the United States, and the oldest in continuous existence...
and a captain of the varsity
Varsity team
In the United States and Canada, varsity sports teams are the principal athletic teams representing a college, university, high school or other secondary school. Such teams compete against the principal athletic teams at other colleges/universities, or in the case of secondary schools, against...
tennis
Tennis
Tennis is a sport usually played between two players or between two teams of two players each . Each player uses a racket that is strung to strike a hollow rubber ball covered with felt over a net into the opponent's court. Tennis is an Olympic sport and is played at all levels of society at all...
team from 1916 to 1918. He subsequently served in U.S. Naval Reserve.
Career
Nielsen worked as an electrical engineer for the Isko Company in Chicago from 1910 to 1920 and for the H. P. Gould Company in Chicago from 1920 to 1923. He founded the ACNielsenACNielsen
ACNielsen is a global marketing research firm, with worldwide headquarters in New York City. Regional headquarters for North America are located in Schaumburg, Illinois. As of May 2010, it is part of The Nielsen Company.-History:...
company in 1923, and in doing so advanced the new field of market research
Marketing research
Marketing research is "the function that links the consumer, customer, and public to the marketer through information — information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve...
. This involved: (1.) test market
Test market
A test market, in the field of business and marketing, is a geographic region or demographic group used to gauge the viability of a product or service in the mass market prior to a wide scale roll-out...
ing new products to determine their viability prior to costly mass marketing
Mass marketing
Mass marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. It is type of marketing of a product to a wide audience. The idea is to broadcast a message that will reach the largest number of people possible...
and production; and (2.) measuring product sales at a random sample
Random sample
In statistics, a sample is a subject chosen from a population for investigation; a random sample is one chosen by a method involving an unpredictable component...
of stores to determine market share
Market share
Market share is the percentage of a market accounted for by a specific entity. In a survey of nearly 200 senior marketing managers, 67 percent responded that they found the "dollar market share" metric very useful, while 61% found "unit market share" very useful.Marketers need to be able to...
. Careful statistical sampling was crucial to this process. The techniques developed by Nielsen were especially important for the efficient operation of a market
Market
A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers...
prior to the introduction of computerized digital networks that in the 1990s enabled continuous and comprehensive monitoring of sales by product retailers. Nielsen was also a pioneer in developing methods of measuring the audience of radio and television broadcasting programs, most notably the Nielsen ratings
Nielsen Ratings
Nielsen ratings are the audience measurement systems developed by Nielsen Media Research, in an effort to determine the audience size and composition of television programming in the United States...
.
Nielsen inaugurated a National Radio Index for broadcasters and advertisers in 1942, followed by a television ratings service in 1950. By the time of his death, the company's revenue was US$ 398 million annually.
Personal life
With his son Arthur Nielsen, Jr., he won the U.S. Father and Son doubles titles in 1946 and 1948. He was elected to the International Tennis Hall of FameInternational Tennis Hall of Fame
The International Tennis Hall of Fame is located in Newport, Rhode Island, United States. The hall of fame and honors players and contributors to the sport of tennis and includes a museum, grass tennis courts, an indoor tennis facility, and a court tennis facility.-History:The hall of fame and...
in 1971. The University of Wisconsin awarded him an honorary Doctor of Science (ScD) in 1974. Nielsen was appointed a Knight of the Order of the Dannebrog
Order of the Dannebrog
The Order of the Dannebrog is an Order of Denmark, instituted in 1671 by Christian V. It resulted from a move in 1660 to break the absolutism of the nobility. The Order was only to comprise 50 noble Knights in one class plus the Master of the Order, i.e. the Danish monarch, and his sons...
, Ridder af Dannebrog (1961) by the nation of Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...
.
Nielsen and his wife donated the Nielsen Tennis Stadium to the University of Wisconsin–Madison. In 1990, the A.C. Nielsen family made a donation to UW-Madison to create a full-time MBA program specializing in market research. It is the only full-time market research program in the United States.
Professional recognition
- Annual Advertisement Awards Committee, 1936
- Chicago Federated Advertisements Club, 1941
- American Marketing AssociationAmerican Marketing AssociationThe American Marketing Association is a professional association for marketers. As of 2008 it had approximately 40,000 members. There are 76 professional chapters and 250 collegiate chapters across the United States....
, 1951 and 1970 - Hall of Fame in Distribution in 1953
- International Advertisement Association, 1966
Additional sources
- Buzzard, Karen Chains of Gold: Marketing the Ratings and Rating the Markets (Metuchen, New Jersey: Scarecrow Press, 1990)