Discovery of Warner Bros. has signed an agreement with VideoAmp to measure its audience as an alternative data medium for advertisers, the companies announced Tuesday.
The contract is a big moment for VideoAmp, a startup ad measurement platform that recently grew its client list before this year. prepay in the spring, as TV networks seek to secure long-term commitments from advertisers. Warner Bros. Discovery owns traditional TV networks and streaming services.
The deal also gives Warner Bros. Discovery another set of data to offer advertisers at a time when the industry is looking at alternatives to the old measurement company Nielsenplaced under the microscope during the process Covid pandemic when there is a question regarding its measurement table. Warner will use both Nielsen and VideoAmp.
Companies like Nielsen and VideoAmp provide audience data and estimates that TV networks and streamers use to sell placements for ads. Nielsen’s measurement system is based on a panel of about 40,000 households that allows it to track what they watch. VideoAmp bases its data on logins from devices. Other competitors in this space include Comscore, as well as startups like iSpot.tv and Samba TV.
VideoAmp won’t provide a contract length with Warner, but founder and CEO Ross McCray told CNBC its deals with the media giant and others are long-term. VideoAmp also work with Disneyrecently launched an ad-supported platform for Disney+, as well as Televisa Univision.
“Particularly with Warner’s investment in streaming and having a portfolio of so many channels, WBD has a lot of opportunity,” McCray said. “We’ll let you package it as a cross-platform” for advertisers.
Discovery and Warner Media merger closed in 2022, accumulated a catalog of television networks including Discovery Channel, TLC, TNT, TBS and others. Merger company plans to launch a revamped streaming platform in the spring, combining Discovery+ with Warner’s HBO Max.
The company was also in in the midst of cutting costs as it faces a huge debt from the merger. While WBD will still use Nielsen’s measurement services, the deal with VideoAmp gives them a different set of data and the ability to have a more cost-effective, standalone alternative for the future.
“Traditional media measurement hasn’t kept pace with how consumers interact with linear and streaming content. As a result, these audiences have fallen,” said Andrea Zapata, head of advertising sales at Warner. undercounted and current measures no longer accurately reflect their true advertising value.” research, measurement and insights, in a press release.
Nielsen’s lock on TV viewership and ratings goes back decades. However, Nielsen’s figures have come under scrutiny due to concerns raised earlier during the pandemic about inaccuracies and irregularities in its measurements, according to media reports.
Nielsen reveal missing count problems in 2020 and has since lost certification with the Vehicle Rating Council, the industry body that verifies metrology. Nielsen’s status with the MRC remains suspended, According to recent reports. VideoAmp, founded in 2014, is also not recognized by the MRC.
Despite these problems, Nielsen is still the measurement giant in the office with all the major media companies. Streamers also work with Nielsen. AmazonIts Prime TV uses Nielsen for Rating “Thursday Night Football”. When Netflix launched ad-supported tier last year, it says its program will be Rating by Nielsenstarting sometime in 2023.
This is A pivotal moment for the media industry, as cable cutting accelerates recently and media companies seek to make streaming a profit. Streaming services have added cost-effective, ad-supported options as subscriber growth slows in 2022.
While there are about $60 billion to $70 billion is spent annually on US linear TV advertising, according to Insider Intelligence, online ad revenue is steadily increasing. Ad revenue for streaming services is expected to surpass $21 billion by 2023, up from nearly $17 billion in 2022, according to Insider Intelligence.
VideoAmp’s McCray said of the measurement industry: “We’re expecting meaningful change because the demand is there.
