Exploring the Leading Players Shaping TV Ad Measurement in an Era of Transformation

As upfronts season approaches, discussions are heating up about the future of measurement in the world of streaming TV. After Nielsen faced some setbacks and then regained accreditation, other measurement providers and streaming-focused companies have been working hard to offer new and competitive solutions.

Last year, the Joint Industry Committee (JIC) was established by national TV programmers, major media agencies, streaming platforms, and other industry players. This group has been moving quickly to develop measurement solutions. Recently, they announced that Comscore and VideoAmp have been certified as transactable national currencies, marking a significant milestone in setting and evaluating measurement standards.

Chief executives from the top currency-level measurement providers, known as the “Big Four” - Comscore, VideoAmp, Nielsen, and iSpot, shared their insights on the industry's current state and future directions at a recent Coalition for Innovative Media Measurement (CIMM) summit on April 3.

Peter Liguori, the executive chairman of VideoAmp, emphasized that the industry is not on the brink of change but is already experiencing it. He highlighted that VideoAmp is leading the way by offering measurement and currency services for 98% of the TV landscape. According to Liguori, change is not just imminent; it is happening now and at a rapid pace.

Innovation and evolution

Executives at the CIMM East panel emphasized the progress made in the industry while also expressing excitement about the potential future developments. They stressed the importance of continued innovation and differentiation among measurement firms to drive further advancements in the field.

"We've seen a lack of diversity and innovation for many years, with little competition. But now, things are changing," stated Liguori, hinting at a challenge to the once-dominant Nielsen. This shift means there are more opportunities to invest in driving the innovation that the industry is seeking.

One key aspect of this innovation is the progress in cross-screen measurement. This allows marketers to better distribute their funds between traditional TV and streaming services. According to iSpot's founder and CEO, Sean Muller, cross-screen measurement will remain a crucial focus for brands not only during this year's upfronts but also in the evolving landscape of TV advertising.

The executive predicts that upfronts will decrease in size over time, while scatter will increase. Many scatter inventories may be sold through programmatic platforms like The Trade Desk. This shift is happening quickly, and the marketplace will look different in the future.

This year's upfronts will be influenced by advancements in measurement from the previous year. The JIC and MRC have resolved their differences, providing clarity on transparent methodologies for currencies. The industry is transitioning from broad demos and gross-ratings points to impression-based transactions, signaling ongoing changes.

Jon Carpenter, CEO at Comscore, reflected on the progress made over the past year, acknowledging that there is still work to be done. He emphasized the need to improve transactional systems between buyers and sellers to reduce friction and enable transactions in currencies other than Nielsen.

Big data and/or panels

While some panelists criticized Nielsen, the overall atmosphere was less confrontational compared to their previous appearance at the Interactive Advertising Bureau’s Annual Leadership Meeting in January. This observation was made by moderator and CIMM Managing Director Jon Watts.

During the previous event, Liguori and Nielsen CEO Karthik Rao had a heated discussion about their companies’ financial challenges and the effectiveness of panels. Liguori even went as far as to describe panels as “deader than dead.” This time, Liguori highlighted VideoAmp’s focus on utilizing big data alongside panels, rather than relying solely on panels. Other panelists also acknowledged this shift in approach.

Muller believes that panels are shifting from being the main focus to a more supportive role, with iSpot being the primary investor in panel startup TVision.

According to Muller, big data is more effective in identifying and eliminating duplicate data regarding households and devices reached by ads and content. However, when it comes to determining who is present in the household and watching TV, panels are still more reliable than big data. This is why iSpot utilizes panels as a training set for AI models, which are then applied to big data to identify individuals watching TV in the household.

Similarly, Comscore, a pioneer in using big data, invests heavily in panels, spending "tens of millions of dollars." In addition to panels, Comscore also utilizes a semantic web crawler to extract contextual signals from its publisher integrations, as mentioned by Carpenter.

For the past 25 years, we have been using both big data and panel to gather insights," mentioned the Comscore executive. They believe that a combination of both is essential as no single solution can fully address the measurement challenges we face today.

On the other hand, Nielsen's Rao strongly defended the methodology that has been central to the company's services for years. Despite investing in big data, Nielsen continues to rely on their traditional approach.

Winners and losers

According to him, devices and big data are different from people. It may sound like a cliche, but it is a fact. He mentioned that big data may not accurately account for Hispanic and Black audiences. He emphasized the importance of panels in measuring the entire audience and representing the entire population, although there may be a shift in emphasis and bias over time.

Whichever combination and methodology of big data and panels prevails, the measurement landscape is likely to remain dynamic. Last year, out of the seven measurement firms invited to participate in the JIC process, only Comscore and VideoAmp were certified. iSpot was conditionally certified, pending a final decision in June. There is still a possibility of further market consolidation.

"It has required significant investment to have four people on this panel. It is now up to all of you in the industry to recognize and reward innovation, to support disruptors, and ensure that next year, this panel continues to exist rather than turning into a casual conversation," stated VideoAmp's Liguori.

Innovation and disruption can be costly, with expenses for serving clients, setting up panels, and acquiring and processing data on the rise. According to Comscore’s Carpenter, for companies on the CIMM panel, the key to moving forward is to streamline operations and offer top-notch products and solutions to the market.

Carpenter also mentioned that there will likely be more consolidation in this industry. With limited resources available, there may not be enough financial support to sustain multiple measurement companies in the ecosystem. The focus now is on which companies have the solutions that align with today's marketplace demands, which are increasingly omnichannel and cross-platform.

Marketers need to consider the costs of measurement versus the benefits of results when making economic decisions. For example, VideoAmp helped Pepsi increase its reach by 20%, reduce CPMs by about 10%, and boost sales significantly, as noted by Liguori. This highlights the importance of measurement providers proving their value in the industry.

An executive pointed out that marketers must determine if they are a cost center or a revenue generator. Economic decisions should be based on the impact on costs and measurement, or on the ultimate result that truly matters - sales.

Editor's P/S:

The streaming TV measurement landscape is undergoing a significant transformation, with new players emerging to challenge the dominance of Nielsen. The Joint Industry Committee (JIC) has certified Comscore and VideoAmp as transactable national currencies, marking a shift in industry standards. Measurement providers are emphasizing innovation and differentiation, focusing on cross-screen measurement and the integration of big data and panels.

While Nielsen faces criticism for its traditional approach, other providers are embracing a combination of big data and panels to improve accuracy and reliability. The industry is expected to see further consolidation as companies seek to streamline operations and offer solutions that meet the evolving needs of the omnichannel and cross-platform advertising ecosystem. Marketers are urged to evaluate the costs and benefits of measurement and make economic decisions based on the impact on sales and revenue generation.