FORWARD DRIVING INDUSTRY THOUGHT LEADERSHIP FOR MARKETERS

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Traditional TV measurement no longer fully accommodates the growing needs of the extended TV industry; it’s now imperative to also have cross-platform and digital measurement in order to match viewer and consumer behavior. Because media usage has outpaced traditional models of measurement, we find ourselves with separate methods for TV and digital. To help marketers understand these differences, TV vs. DIGITAL: GETTING our research department developed a list of essential questions to be considered THE NUMBERS RIGHT when comparing audience CONTRIBUTED BY HADASSA GERBER delivery and performance between TV and digital platforms. At TVB, we consider these types of questions every day; we are not only broadcasters, but also purveyors of content and digital. “Numbers that Measure ntil recently there has been no coordinated effort to align TV measurement and digital Up” (see sidebar on page 2) is measurement in the media industry. Nielsen began measuring television back in 1950 and has kept its television just one of the many analyses we provide to help marketers measurement distinct despite the rise of digital media. The development of digital measurement arose inde- make smart and informed pendently and organically based on the needs of its platforms, resulting in a multiplicity of services, many without media decisions. third-party verification. There has been no lack of confusion when comparing TV and digital data, nor lack of press surrounding the latest attempts to develop sufficient cross-platform measurement. All the major players and — STEVE LANZANO many new ones have entered the arena. This raises the question of further fragmentation within measurement, as President and CEO, TVB all are vying for the business of both traditional and digital media companies. It remains to be seen whether one [email protected] Uiteration will out-perform all others and be embraced universally across the industry. The industry continues to be faced with a number of challenges, including working toward a the public rollout of the Total Content metric and created friction measurement standard that will allow the combination of TV and between media buyers and their clients; like Yaccarino, some prefer digital, with the ability to de-duplicate common audiences and to wait for qualitative improvements in the metric while others, like to verify the validity of audiences, as well as understanding the CBS CEO Leslie Moonves, are eager to use the data. Meanwhile, measurement metrics of stand-alone data for TV and digital and comScore, which announced its merger with measurement how to properly compare the two. company Rentrak in early 2016, recently declared its own plans to develop a new cross-platform TV measurement system. The WHAT’S UP IN TV MEASUREMENT? company’s CEO, Serge Matta, said a monthly product and service Nielsen’s long-awaited Total Audience Measurement has unfolded with daily data should be ready by the fall 2018 season. Further- slowly over the past year and a half. After delays and a gradual more, media investment company GroupM almost simultaneously rollout, the company faced some fierce criticism from clients. announced its intentions to work on cross-platform measurement. NBCUniversal’s chairman of ad sales and client relationships, They plan to work with data from both Nielsen and comScore. Linda Yaccarino, was vocal about her disappointment with the Ideally, the competitive race to come up with the most effective, long-awaited Total Content metric, citing a too-small measurement accurate, and qualitative platform will result in unified measure- universe and slow delivery as problems that contributed to under- ment across the industry, which is likely to please media companies representing the actual number of viewers. This has further slowed and clients, but it may not be realized in the foreseeable future.

NUMBERS THAT MEASURE UP

Seven questions to ask when comparing TV standard for digital currency and could not 2017, the question to ask is how many YouTube numbers to digital numbers be more different than the television average. channels did it take to get to that number and Here’s an example: When USA Today reports TV over what period of time? The answer: YouTube Are the numbers average impressions or total audience numbers on Wednesdays, they usually reached 167,775,000 unduplicated viewers by 1 impressions? To put things in perspective, refer to one program airing on one day. For counting views on 2,883 channels for a month. let’s begin with an analogy. In looking at real example, Jimmy Kimmel Live starts at 11:35 How would the broadcast networks amass the estate home values, Sonoma County, Calif., is p.m. and runs for 45 minutes. For network TV same number of unduplicated viewers? It would listed at $400,000, while Oxford County, Maine, these 45 minutes are added and the total is then take six broadcast networks five days. is listed at $1.3 million. The assumption is that divided by 45 to get the network currency of an Oxford County has more upper income house- average minute. In digital measurement, Ratings: What universe are they a percentage holds, but after looking at listings on Zillow, it cumulative monthly views are the currency 5 of? The TV universe encompasses 97 becomes apparent that Sonoma County has more standard. Not only are they not averaged, but percent of the adult 18-plus population. The expensive homes — so what accounts for this they cover a much longer length of time (30 internet universe encompasses 84 percent of discrepancy in home values? As often happens days versus one day). the adult 18-plus population. A schedule of when comparing TV and digital numbers, the 70 rating points reaches 70 percent of a average home value is being compared to the Are the numbers duplicated or non- universe. Because the TV universe is larger than total home value. In the case of Sonoma County, 3 duplicated audiences? Let’s say five people the internet universe, 70 TV ratings points, or the values of 10 houses were added up and initially view a program, then three of them see 70 percent, will result in a larger number of divided by 10 to get the average value, the video once more. The duplicated audience viewers than the same number of rating points $400,000. For Oxford County, the values of 10 for that group is now equal to eight people. To in the internet universe. houses were added up to get a total of $1.3 make things even more confusing, there’s also million. This happens often when average TV different terminology used for TV and digital How much of the screen do you have to view impressions are compared to total digital when referring to audiences. In TV, the dupli- 6 to be counted as a viewer? For TV, a viewer is impressions. Are both methodologies correct cated number (eight people) is called gross expected to be able to see the entire screen. For in and of themselves? Sure. But are they impressions; in digital it’s called total videos or digital, a person need only view 50 percent of comparable? Not at all. views. If duplication is not included, as in the the screen to be counted as a viewer. initial example, the unduplicated number is five. What is the platform’s currency based on? In TV this is called reach impressions and in How long do you have to view to be counted 2 Network TV currency is based on the average digital it’s called total unique viewers. 7 as a viewer? In digital, according to the minute. For spot TV, the currency is an average Media Rating Council viewability standard, a quarter hour. It’s key to note that both are When you see a number, how many moving viewer must watch for at least two seconds. In averages. In digital measurement, views of video 4 parts are in that number? And how long did it network TV, it’s 30 seconds. In spot TV, it’s five clips of various lengths are added up cumula- take to get to it? When YouTube says it had minutes, or 300 seconds. tively over a month. The resulting total is the 167,775,000 unduplicated viewers in February — H.G.

2 ANA FORWARD Volume 2 WHAT’S DOING IN DIGITAL? methodology and terminology, which often causes confusion Digital measurement has had its own wild ride over the past few when attempting to compare the two. Take, as an example, this years. The digital advertising industry has been fraught with ad case from Nielsen: Yahoo! streamed an NFL game and claimed to fraud, bots, the rise of ad blocking, and more recently the ascen- have attracted 15.2 million viewers, a respectable number when dancy of “fake news.” According to the ANA, advertisers lost compared to television’s average audience of 19 million per average $7.2 billion in 2016 to ad bot fraud, and a recent study by startup game. However, on analyzing the numbers Nielsen noted that PageFair estimates that ad blocking software rose 30 percent comparing the two deliveries is like comparing apples to oranges. worldwide in 2016. Facebook has frequently been in the news TV ratings are measured by average audience per minute; when regarding the unreliability of its measurement metrics: Last year Nielsen used this same metric for the Yahoo! game, Yahoo!’s the tech giant publicly acknowledged four instances of known 15.2 million figure dropped to about 1.6 million. Marketers need measurement and reporting inaccuracies affecting its publishers reliable, consistent metrics that equate across media. and advertisers. Big advertisers like P&G have made it very clear that they’re not BRINGING IT ALL TOGETHER going to take it anymore. They’re voting Cross-platform measurement and digital with their dollars. Marc Pritchard, ANA Consumer access to verification are works in progress, and chairman and the chief brand officer at today most of the industry still looks at TV P&G, recently disavowed big digital players multiple platforms and digital measurement separately. How like Google and Facebook for their lack has changed the then are marketers supposed to make of transparency and their viewability sense of two separate sets of measure- problems. “The days of giving digital a dynamics of media ment metrics — TV and digital — in order pass are over. It’s time to grow up. It’s time to make the smartest and most effective for action,” Pritchard said at the IAB’s and made measuring multimedia planning and buying deci- annual leadership conference. He has audiences complex. sions? To aid TVB members, advertisers, clearly stated that, in order for digital and the press in clarifying the differences companies to get P&G business, they in measurement between television and need to adopt the Media Rating Council’s digital, TVB’s research department (MRC) viewability standard, have third-party verification, and have developed the “Numbers that Measure Up” analysis (see sidebar on certified ad fraud prevention. Incentivized by the very real prospect previous page) — seven questions that marketers should ask when of losing significant advertising dollars, Google has engaged the looking at TV and digital measurement in order to understand how MRC for an audit of some YouTube metrics. Facebook as well has the numbers are calculated and to determine whether the numbers entered into conversations with the MRC about the auditing process. can be accurately compared. Our guide helps marketers under- While this is a step in the right direction and certainly a departure stand the numbers so they can make well-informed media buying from their previous “trust me” approach, it remains to be seen how decisions. TVB makes no claim as to whether either measurement cooperative they ultimately will be and how long it will take to get is right or wrong, only that understanding them when drawing these two services accredited. comparisons and making strategic media decisions is essential. TVB’s members not only sell local on-air television time, but also TV VERSUS DIGITAL have many valuable digital assets. We recognize that there’s a strong Not only has there been a recent shift in media spending as synergy between the two platforms, both in how consumers use advertisers take into account these critical issues, more are them and in how marketers vie for consumer attention. We have speaking out about the ROI from TV versus digital. As Coca-Cola a vested interest in helping our customers get it right. Global CMO Marcos de Quinto said publicly at the end of last year: Consumer access to multiple platforms has changed the “TV still offers the best ROI across media channels.” In the political dynamics of media and made measuring audiences complex. sphere, ad buyers and consultants have also been vocal about There isn’t currently one accepted industrywide solution, but what media mix results in a successful advertising campaign. promising efforts are in the works. Until the industry gets to where “Some of the dollars are going to shift to wherever people are it needs to be in multiplatform measurement, marketers and their consuming media,” GOP Media Consultant Casey Phillips told advertising partners still need to compare and assess the strengths Campaigns & Elections last year. “But if you don’t think TV ads of each platform. Digital and TV platforms have unique offerings make a difference in Senate, House, and governors’ races, you’re for growing brands — it’s a matter of finding the right fit. looking at the wrong set of data.” And marketers need to be looking at the right data. What’s more, marketers need ways to compare Hadassa Gerber is the SVP and chief research officer at TVB.

CREDIT: TARIKVISION/SHUTTERSTOCK CREDIT: digital and television data accurately. Each platform has its own You can email her at [email protected].

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