SAN JUAN, Puerto Rico – Buyers and sellers of television advertising are working through a period of major disruption in how they set the value of their transactions, or what is known as a currency. The growth in streaming has spurred a need for a currency that helps advertisers to compare digital video with traditional linear TV.
“There’s been a lot of work gone into the evaluation of the data, the implementation of a new currency into existing systems, but not enough has been discussed around the value for brands, and why they should care and how they should have the conversation about why they should move to a new currency,” Michael Parkes, president of VideoAmp, said in this interview at the Beet Retreat San Juan.
VideoAmp is among a group of newer measurement companies that are competing with TV ratings stalwart Nielsen, which recently launched a service for cross-platform metrics. As television networks and video publishers prepare for the upfront sales season, currencies play a key role in their negotiations with media buyers.
“We have the top six TV networks either transacting or ready to transact on VideoAmp as a currency going into the next upfront, and we’re now focused on explaining the value of a new currency to the brands,” Parkes said. “The value that they are able to capture is around leveraging more accurate data. So, instead of a small panel of 40,000 people, we can leverage a large data footprint of 40 million households.”
More than 40 advertisers are currently transacting on VideoAmp currency during the current quarter, and more than 90% are recurring clients for the company.
“We’re also helping a number of brands look at their entire video investment going into the upfront and understand how they can transition 100% of their spend on to a new currency,” Parkes said. “There’s a lot of work going in and a lot of adoption happening that is going to really make this upfront look very different than anyone before.”
You’re watching coverage of Beet Retreat San Juan 2023, presented by LiveRamp, Madhive, Magnite, Paramount, T-Mobile Advertising Solutions and VideoAmp. For more videos from the Beet Retreat, please visit this page.
