Warner Bros. Discovery has signed a cope with VideoAmp to measure its viewers in its place means of information for advertisers, the businesses introduced Tuesday.
The contract is a major second for VideoAmp, a startup promoting measurement platform that has lately been rising its listing of purchasers forward of this 12 months’s upfronts in spring, when TV networks look to safe long-term commitments from advertisers. Warner Bros. Discovery owns conventional TV networks and streaming companies.
The deal additionally offers Warner Bros. Discovery one other information set to offer to advertisers at a time when the business is contemplating alternate options to legacy measurement agency Nielsen, which was put beneath the microscope throughout the Covid pandemic when questions arose relating to its measurement panels. Warner can be utilizing each Nielsen and VideoAmp.
Firms like Nielsen and VideoAmp provide viewers estimates and information that TV networks and streamers use to promote slots for commercials. Nielsen’s measurement system relies on a panel of roughly 40,000 households that enable it to trace what they watch. VideoAmp bases its information on log-in info from gadgets. Other rivals within the area embrace Comscore, in addition to startups like iSpot.television and Samba TV.
VideoAmp would not present the size of its contract with Warner, however founder and CEO Ross McCray advised CNBC its offers with the media large and others are for the long run. VideoAmp additionally works with Disney, which lately launched the ad-supported platform for Disney+, in addition to TelevisaUnivision.
“Especially with Warner’s investment in streaming and having a portfolio of so many channels, WBD has so much opportunity,” mentioned McCray. “We are going to properly allow you to package it as a cross platform” to advertisers.
The merger between Discovery and Warner Media closed in 2022, amassing a portfolio of TV networks together with the Discovery Channel, TLC, TNT, TBS and others. The merged firm plans to roll out a revamped streaming platform within the spring, combining its Discovery+ with Warner’s HBO Max.
The firm has additionally been within the midst of cost-cutting because it contends with a hefty debt load stemming from the merger. While WBD will nonetheless be utilizing Nielsen’s measurement companies, the cope with VideoAmp offers it one other information set, and the potential of a extra cost-efficient, stand-alone different for the longer term.
“Traditional media measurement has not kept pace with how consumers are engaging with streaming and linear content. As a result, these audiences have been undercounted and current measures no longer accurately reflect their true advertising value,” mentioned Andrea Zapata, Warner’s head of advert gross sales analysis, measurement and insights, in a news launch.
Nielsen’s lock on TV viewership and rankings has spanned a long time. However, Nielsen’s metrics got here beneath scrutiny as considerations mounted earlier within the pandemic relating to inaccuracies and irregularities in its measurement, in keeping with media reviews.
Nielsen disclosed undercounting points in 2020, and has since misplaced its accreditation with the Media Rating Council, the business physique that verifies the measurement course of. Nielsen’s standing with the MRC stays suspended, in keeping with current reviews. VideoAmp, which was based in 2014, does not have accreditation from the MRC, both.
Despite these points, Nielsen stays the measurement large within the room working with all main media corporations. Streamers work with Nielsen, too. Amazon‘s Prime TV makes use of Nielsen for its “Thursday Night Football” rankings. When Netflix launched its ad-supported tier final 12 months, it mentioned its programming can be rated by Nielsen, starting a while in 2023.
This is a pivotal second for the media business, as wire chopping accelerated lately and media corporations look to make streaming worthwhile. Streaming companies have added cost-efficient, ad-supported choices as subscriber progress slowed down in 2022.
While there’s about $60 billion to $70 billion spent yearly on U.S. linear TV promoting, in keeping with Insider Intelligence, streaming advert income is steadily rising. Ad income for streaming companies is predicted to exceed $21 billion in 2023, up from practically $17 billion in 2022, in keeping with Insider Intelligence.
“We’re expecting meaningful change because the demand is there,” VideoAmp’s McCray mentioned of the measurement business.