What began in 1923 with Arthur C. Nielsen, Sr. borrowing $45,000 to test the performance of industrial manufacturing machines, evolved into a global leader in audience measurement, data, and analytics. The A.C. Nielsen Company, incorporated in Chicago, Illinois, initially focused on engineering performance surveys, marking itself as the first company to offer market research. A pivotal moment arrived in 1932 when the company created a retail index tracking food and drug purchases. This innovation was the first of its kind, allowing companies to determine their 'market share' – a concept Arthur C. Nielsen is credited with coining. Despite early financial struggles, nearly going bankrupt twice, the company found its footing by analyzing retail food and drug sales, which became a cornerstone of its business.
The 1940s saw Nielsen venture into radio program ratings after acquiring the Audimeter, a device that measured radio station tuning. This expanded into a national radio rating service by 1942. The company's most widely recognized contribution, however, began in 1950 with the measurement of television audiences, a nascent medium at the time. Using a combination of devices attached to televisions and viewer diaries, Nielsen developed its iconic ratings system. Over the decades, Nielsen underwent significant transformations, including acquisitions and divestitures. It was acquired by Dun & Bradstreet in 1984 and later split into Nielsen Media Research (TV ratings) and AC Nielsen (consumer shopping trends) in 1996. Dutch publishing company VNU acquired Nielsen Media Research in 1999 and later AC Nielsen, recombining the two in 2001. VNU itself was acquired by private equity firms in 2006 and renamed The Nielsen Company in 2007. More recently, in 2021, Nielsen completed the sale of its Global Connect business (formerly AC Nielsen, now NielsenIQ) to focus on its Global Media division, solidifying its role as a pure-play media audience measurement and analytics firm. In 2022, a group of private equity investors led by Elliott Investment Management acquired Nielsen. Today, Nielsen operates in over 100 countries, shaping the future of media by providing trusted intelligence on audience behavior across all channels and platforms.