AdExchanger: One of the cornerstones of addressable TV is the accompanying third-party data that enhances the buy. What’s Nielsen’s role in addressable TV?
AMIT SETH: We have enablement for marketing objectives based on audiences. The strength that Nielsen brings is the ability to bring offline behavior into this environment. We are already heavily engrained in digital, so we bring TV-viewing behavior into digital including digital video. We bring offline purchasing behavior, or PRIZM segments, [which is] information on audiences and their behavioral profiles. That’s kind of one piece of your question. The other piece is addressability and optimization. We believe that as addressability comes to TV, the cross-platform buy is truly consummated. Today the cross-platform buy doesn’t happen for many reasons including the presence of siloed teams … but as addressability comes, the cross-platform buy gets enabled. That’s the advantage of addressability where you don’t just look to optimize in one modality.
If media is increasingly sold cross-platform, what becomes the right metric to measure it by?
[Say you] advertise on TV and were able to get a certain reach [or] you advertise on digital and with OCR and you are able to get a certain reach. But frequency is an even more important issue over and beyond reach. [It’s answering], “How much duplication is there if the person was shown an ad on TV and on digital they saw the same ad?” because it could be wasteful. It could be over the frequency limit.
So understanding unduplicated reach is a very important aspect of our cross-platform measurement. You have measurement in each of those areas and then you have an overreaching framework that says how much duplication exists between those metrics so you can plan for it. The objective is not only trying to maximize reach, so therefore minimize duplication. The objective could actually be forced duplication. There are some advertisers who may say, “I want to advertise on TV and capture those same people on digital with a follow-up message.” Maybe with a call to action because digital allows a click-through or to get the same people to extend that value. That’s how we look at cross platform and the intersection of how many people do both.
What’s still the greatest hurdle to leap in a converged world?
In the converged world, the challenge really is how you combine different objectives [for instance, premium programming vs. user-generated content] to yield value for the buyer. It’s as big a challenge to measure that because in the world of C3, you have to give credit to the program. If you’re seeing that program on a tablet, you have to provide an extension to C3. At the same time, you cannot then provide that to the digital-only metric because you’re double counting, so there are significant challenges in the converged world.