A big theme at CES this year was marrying the data associated with online video to the advertising ecosystem that traditional TV is predicated upon. Content owners in the States are struggling with following viewers online, while preserving the linear TV ratings that generate the most revenue for broadcasters. The great irony here is that online technologies and tools offer far more accurate measurements of viewership and audiences than the dated, panel approach used by Nielsen, and upon which the industry’s linear TV ratings currency is based.
“Something that’s highly unrated as a value proposition in the OTT space is that you are creating a lean-back television experience, but you’re getting data that is so much better than any of the reporting on traditional television,” said Doug Craig, VP of programming at Roku, speaking on a panel at CES. “It’s the best of the consumer experience with the best of the recording that you’re getting from online now.”
As more and more viewing is occurring online, Nielsen has struggled to keep up with shifts in viewer behavior. It only recently announced a partnership with Adobe that will help it measure online viewing across devices and platforms.
Meanwhile, many firms such as comScore and Rentrak are looking to mount a challenge against Nielsen in this arena. “The day of exact analytics, in terms of what people are watching, is here,” said Ty Roberts, chief strategy officer and co-founder of Gracenote. “We can recognize any TV program, any channel anywhere in the world, practically. The reality is that the data is there.”
Advertisers and extension broadcasters are poised to greatly benefit from new analytics technologies that can span devices, platforms and services to gather a broad and detailed picture of what viewers are watching. “The ability to look at the consumer’ viewing across all the different sources – OTT and broadcast – and record it, is very interesting and it gives you a much better picture of what they’re interested in and how long they’re watching it,” Roberts said.
Practically every major content owner in the US has made comments indicating they are taking the reins in online and streaming measurements, instead of waiting for Nielsen to catch up.
Time Warner head Jeff Bewkes said the company will begin rolling out “advanced products that provide advertisers with the analytics and targeting they are coming to expect.” He said combining “the reach and quality environment of TV with the analytics in targeting digital is the holy grail for advertisers. And if we do that successfully, we think we can take share back from digital competitors over time.”
Viacom’s CEO Philipe Dauman said inadequate measurements undermine the network’s ability to deliver multi-platform programming. “While it is currently a reality of our business, at Viacom we are not waiting for change,” he said. Viacom is working with third party companies and Nielsen to create new measurement and monetization tools. “We are bringing together data on engagement and behavior from a range of sources including set top boxes, smart TVs, and other digital devices,” he said.
Discovery Communication’s CEO David Zaslav said online viewership is consistently under-measured with the system in place today. “As you look around the world, it is sad that you look at the US as being on the lower end of antiquated measurement systems,” he said. “It’s maybe the most robust advertising market in the world and the most efficient and yet the measurement is very weak. It is a real challenge and there’s no question that it is under-measuring, but it is the system that we have.”
Nielsen recently responded to some of these comments during its own quarterly earnings call. “The future of measurement is not about choosing between panels and big data,” said Nielsen CEO Mitch Barns. “It’s about combining high-quality panels with granular data sets for the best of both worlds.”