NEW YORK (TheStreet) -- Media analytics firm Nielsen (NLSN) launched its much awaited Nielsen Twitter TV Ratings tool. The tool will allow TV networks, advertisers and agencies to gain deeper insight into TV-related consumer trends in the Twitter-sphere.
The company said initial findings from the tool shows the impact of a few authors commenting about a TV show can have a wide-ranging impact in the Twitter world. For instance on average, the Twitter TV audience for a single episode can be 50 times larger than those who are generating the Tweets. Therefore, if 2,000 people are tweeting about a program, 100,000 are seeing those Tweets.
A Nielsen spokesperson said that while it's unclear how media and ad executives will choose to monetize the information provided by the tool, they will be able to use it to identify key consumer trends.
The spokesman added that over time the tool will add more features enabling the analysis of audience demographics as well as increase the range of offerings including analytics related to the correlation between Twitter TV audience sizes with program air times as well as the scale of influence that a certain type of author might have on multiplying audience interest. This would for example include comparisons between the multiplier effect from a fan-based authorship versus a pre-arranged celebrity appearance.
Dr. Josef Schuster, the founder of IPO research and investment house IPOX Schuster in Chicago, said the huge multiplier effect of Twitter as shown in the Nielsen report is adding to the positive sentiment surrounding the still yet-to-be-launched shares of the company.
"It's already hot and everybody's super excited -- you saw somebody already putting a price target on Twitter at $50 -- maybe it's going to come at 30 times revenue in terms of market cap ... so I think this type of news definitely builds excitement into the stock," said Schuster.
On Monday, Suntrust Robinson Humphrey analyst Rob Peck initiated coverage on Twitter with a "buy" recommendation and $50 price target.
-- Written by Andrea Tse in New York
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