warner bros discovery has signed a deal with VideoAmp to provide an alternative means of data for advertisers to measure their audiences, the companies announced Tuesday.
The contract marks a significant moment for VideoAmp, a startup ad measurement platform that recently grew its client list ahead of this year. Front In the spring, when TV networks look to secure long-term commitments from advertisers. Warner Bros. owns Discovery traditional TV networks and streaming services.
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The deal also gives Warner Bros. Discovery another data set to provide to advertisers when the industry is considering alternatives to the legacy measurement firm. Nielsenthat was placed under the microscope covid pandemic When questions arose about its measurement panel. Warner will use both Nielsen and Videoamp.
Firms such as Nielsen and VideoAmp offer audience estimates and data that TV networks and streamers use to sell slots for commercials. Nielsen’s measurement system is based on a panel of approximately 40,000 households which allows it to track what they watch. VideoAmp bases its data on log-in information from devices. Other competitors in the space include comScore, as well as startups like iSpot.tv and Samba TV.
VideoAmp wouldn’t provide the length of its contract with Warner, but founder and CEO Ross McCrae told CNBC that its deals with the media giant and others are long-term. videoamp also works with disneywhich recently launched an ad-supported platform for Disney+, as well as To install TelevisaUnivision.
“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 give you the proper permission to package it as a cross platform” for advertisers.
Discovery and Warner Media merger closing in 2022, aggregating a portfolio of TV networks including Discovery Channel, TLC, TNT, TBS and others. merged company plans to launch a new streaming platform In the spring, combining its Discovery+ with Warner’s HBO Max.
Also done in company In the midst of cost-cutting as it grapples with a huge debt burden Merger is happening. While WBD is still using Nielsen’s measurement services, the deal with VideoAmp gives it another data set, and the potential for a more cost-effective, stand-alone option for the future.
“Traditional media measurement hasn’t kept pace with how consumers are engaging with streaming and linear content,” said Andrea Zapata, Warner’s head of advertising sales. As a result, these audiences have been truncated and current measures no longer reflect their actual Advertisements do not accurately reflect price.” Research, Measurement and Insight, in a news release.
Nielsen’s lock on TV viewership and ratings has been in place for decades. However, according to media reports, Nielsen’s metrics came under scrutiny as concerns grew over inaccuracies in the pandemic and irregularities in its measurement earlier.
Nielsen low count issues disclosed in 2020, and has since lost its accreditation with the Media Ratings Council, the industry body that verifies the measurement process. Nielsen’s position with the MRC remains suspended, according to recent reports, VideoAmp, which was established in 2014, is also not MRC accredited.
Despite these issues, Nielsen remains the measurement giant in the working room with all major media companies. Streamers also work with Nielsen. Amazonof prime tv uses nielsen for this “Thursday Night Football” Rating, When netflix launched its ad-supported tier last year, said its programming would rated by nielsenLaunching sometime in 2023.
this is A watershed moment for the media industry, as there has been a recent boom in cord cutting and media companies looking to make streaming profitable. Streaming services have added cost-efficient, ad-supported alternatives as subscriber growth slows in 2022.
while it’s about $60 billion to $70 billion spent annually On US linear TV advertising, streaming advertising revenue continues to grow, according to Insider Intelligence. According to Insider Intelligence, advertising revenue for streaming services is expected to exceed $21 billion in 2023, up from approximately $17 billion in 2022.
VideoAmp’s McCray said of the measurement industry, “We are expecting meaningful change because there is demand.”