VideoAmp Guaranteed Currency For $1B In Buys YTD
- by Wayne Friedman , September 17, 2024
Proving that “alternative” TV/CTV media currencies work now for marketers, media-measurement company VideoAmp said that in using its “data-driven audience solutions” it has guaranteed $1 billion in media buys for the year so far -- trending to increase to $1.5 billion by the end of 2024.
The company says this is a 641% year-over-year gain.
VideoAmp says it now works with more than 1,000 advertisers, and 11 media agency groups.
VideoAmp touts partner TV network groups including A+E Networks, NBCUniversal, Paramount Global and Warner Bros. Discovery. Its media agency list includes IPG Mediabrands, Omnicom Media Group, and RPA.
The company says it now covers 98% of the entire TV publisher ecosystem.
Major disruption to the TV-video landscape over the last several years, with the rise of new streaming channels, and the major cord-cutting of legacy TV networks resulting in less consumer reach, has forced the TV-video marketplace to search for new measurement platforms -- so-called "alternative currencies" -- beyond that of legacy third-party companies like Nielsen.
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In addition, marketers also demand more diverse “outcome”-based guarantees for their media buys, based on a variety of first-party and/or third-party data -- including guarantees focused on web traffic, foot traffic and other measures.
In the fourth quarter of this year, VideoAmp plans to launch an outcome measurement platform.
For the 2024-25 TV/CTV upfront advertising selling season, Media Dynamics estimates revenues totaled $29.5 billion, up 8.1% from the year before. This breaks down to $18.4 billion for linear TV networks (down 3.7% year-over-year), and $11.1 billion for streaming platforms (up 35.4% year-over-year).
Correction: The initial version of this article inadvertently used a photo of Omnicom Media Group's Ralph Pardo instead of Geoffrey Calabrese. The photo has been updated below.
Wayne, the upfront involved something like $42+ billion when you count all of the dayparts, plus streaming. And there are estimates circulating that $2-3 billion involved one or more "alternative currencies"---usually as add-ons to Nielsen GRP guarantees. Still, VideoAmp should be congratulated as it seems to be one of the leaders in this new measurement category.
Thanks Ed... Much appreciate the added "alternative" currency-based media buys information. Wondering then, what's your guess regarding which other media measurement companies -- dollar-wise -- contributed to that $2 bilion to $3 billion total for alternative currency based media deals?
Wayne, I can't really give you much more on that.
What's clear is that so far, there isn't much activity for many of these "currencies" to share in. What will happen in the future is the question. My guess is that the amount of usage will increase---but only to a point---perhaps 10% of the total TV spend. If that is an accurate prediction---and that's all it is---speculation---there will be a shakeout of the "alternative currencies", with some dropping out.
When the sellers shift to Nielsen's new "big data" service----probably next year---- this may pre-empt some of the "alternative currencies"---but we shall have to wait and see.