Thanks to a generous contribution from the Nielsen family, the Center was founded in 1990. Arthur C. Nielsen, Sr., the late founder of the A. C. Nielsen Company revolutionized the field of marketing research by developing the concept of market share. An alumnus of the University of Wisconsin-Madison, Nielsen is best known for the television-rating service that bears his name.

Both Arthur C. Nielsen, Sr. and Gertrude, his wife, attended the University of Wisconsin-Madison. Their son, Arthur C. Nielsen, Jr. received his bachelor's degree in business from the University. Like his father, he earned high scholastic honors and became an integral part of the A. C. Nielsen Company, eventually serving as chairman of the board and chief executive officer in 1989. He also received an honorary doctorate from the University.

Throughout the years, the Nielsens have generously supported the University of Wisconsin-Madison in several areas. Funded by a $4 million endowment from Gertrude Nielsen, and Mr. & Mrs. Arthur C. Nielsen, Jr., the Nielsen Center and the faculty chair were established through a gift to the University of Wisconsin-Madison Foundation. By providing resources to launch the Center's program, the Nielsens have ensured that the University of Wisconsin-Madison will continue to offer a premier program in marketing research and education.

The marketing research specialization has been available at UW- Madison since the mid 1970s. It was enhanced and formalized in 1989 because of this generous grant, whose endowment supported the founding Center. An MS degree in Marketing with a marketing research concentration was originally offered, and in 1997 an MBA degree in Marketing with a marketing research concentration was created. In 2003, the business school updated the MBA curriculum so that all students would get the best of the MS and MBA program in one option.