Warner Bros. Discovery has signed an agreement with VideoAmp to measure its audience as an alternative means of data for advertisers, the companies announced on Tuesday.
The deal is a significant moment for VideoAmp, a startup advertising measurement platform that recently expanded its client roster ahead of the in advance in the spring, when TV stations seek long-term commitments from advertisers. Warner Bros. Discovery owns traditional television networks and streaming services.
The deal also gives Warner Bros. Discover another set of data to provide to advertisers as the industry considers alternatives to the traditional measurement enterprise Nielsenwhich has been placed under the microscope for the covid pandemic when questions arose regarding his measurement panels. Warner will use both Nielsen and VideoAmp.
Companies like Nielsen and VideoAmp offer audience ratings and data that TV networks and streamers use to sell ad slots. Nielsen’s measurement system is based on a panel of around 40,000 households that allow it to track what they watch. VideoAmp bases its data on device login information. Other competitors in the space include Comscore, as well as startups like iSpot.tv and Samba TV.
VideoAmp did not provide the length of its contract with Warner, but founder and CEO Ross McCray told CNBC that its deals with the media giant and others are long-term. Video amplifier also works with disneywhich recently launched the ad-supported platform for Disney+, as well as Televisa Univision.
“Especially with Warner’s investment in streaming and its portfolio of so many channels, WBD has so much opportunity,” McCray said. “We’re going to properly allow you to present it as a cross-platform” to advertisers.
The merger between Discovery and Warner Media closed in 2022, amassing a portfolio of TV networks including Discovery Channel, TLC, TNT, TBS and others. The merged company plans to roll out revamped streaming platform in the spring, combining its Discovery+ with Warner’s HBO Max.
The company has also been in the amid cost-cutting as it faces heavy debt loads resulting from the merger. While WBD will still use Nielsen’s measurement services, the agreement with VideoAmp gives it another data set and the possibility of a more cost-effective standalone alternative in the future.
“Measurement of traditional media has not kept pace with how consumers interact with streaming and linear content. As a result, these audiences have been underestimated and current metrics no longer accurately reflect their true value. advertising,” said Andrea Zapata, head of advertising sales at Warner. research, measurement and insights, in a press release.
Nielsen’s lock on TV viewership and ratings spans decades. However, Nielsen’s measurements have come under scrutiny as concerns mounted earlier in the pandemic about inaccuracies and irregularities in his measurement, according to media reports.
Nielsen undercount issues disclosed in 2020, and has since lost its accreditation with the Media Rating Council, the industry body that verifies the measurement process. Nielsen’s status with the RCN remains suspended, according to recent reports. VideoAmp, which was founded in 2014, also lacks MRC accreditation.
Despite these issues, Nielsen remains the measurement giant in the room working with all the major media companies. Streamers also work with Nielsen. Amazon‘s Prime TV uses Nielsen for its Ranking “Thursday Night Football”. When netflix launched its ad-supported tier last year, it said its lineup would be rated by Nielsenstarting sometime in 2023.
It is a pivotal moment for the media industry, as cord-cutting has accelerated recently and media companies seek to monetize streaming. Streaming services added profitable, ad-supported options as subscriber growth slowed in 2022.
While there are approximately 60 to 70 billion dollars spent each year On linear TV advertising in the US, according to Insider Intelligence, streaming ad revenue is steadily increasing. Ad revenue from streaming services is expected to exceed $21 billion in 2023, up from nearly $17 billion in 2022, according to Insider Intelligence.
“We expect a significant shift because the demand is there,” VideoAmp’s McCray said of the measurement industry.
0 Comments