• by Lance Demonteiro , October 23, 2024

What I heard from industry leaders when discussing video measurement and alternative currency: We have a long way to go.

In March of this year, I  traveled to Scottsdale, Arizona in search of enlightenment as it relates to all things video at the MediaPost TV & Video Insider Summit. After presenting a case study on extending reach with frequency management strategies, I had the honor of moderating a roundtable discussion on the evolving video measurement landscape and alternative currencies. Sitting around the room were heavy hitters representing brands, agencies, publishers, and some of the esteemed measurement solutions themselves. Here were my takeaways.

The greater media industry is in the midst of a significant, but slow-going transformation, on how we measure video and ultimately transact. It’s clear that while advancements are promising, they also come with substantial challenges—ones that brands, agencies, and platforms must carefully navigate.

One of the core issues that emerged is the inherent tension between brands and supposed measurement accuracy. Brands, understandably, are hesitant to shift their measurement approach, even though it could provide more accurate data. The reality is the shift for a brand could present a winner and a loser. What guarantees that a different means of transaction will lead to more or less eyeballs for a brand? You also have to think about who has the most to gain and lose from all this—the networks. The current video measurement ecosystem is anchored by Nielsen, but it's under-counting issues are well-known. The problem isn’t just accuracy—but ultimately how we benchmark data across different platforms and methodologies.

Despite these challenges, Nielsen remains the plumbing of the industry, though at what cost? Is there a need for even more evolution, or are we creating unnecessary complexity? The ad industry is asking hard questions as new systems come into play, powered by co-viewing, pod placement strategies, and outcome-based measurements.

The Rise of Alternatives and the Transaction Dilemma

Enter iSpot and VideoAmp, platforms at the center of the alternative currency conversation. Their methodology differences are massive compared to Nielsen, but are these differences an improvement? ACR (Automatic Content Recognition) and set-top box data are part of the new measurement toolbox, each with their pros and cons. While they tend to provide a more household-centric view, they also bring another dimension of meaningful analysis. For instance, with advanced audiences, if you are an auto services brand, wouldn’t you want to understand how many car owners you reached and not just A25-54?

Agencies, Clients, and the Changing Currency Debate

From an agency’s perspective, the conversation is evolving. Traditional measures like GRPs (Gross Rating Points) are being reevaluated, with many advocating for shifting the conversation to impressions rather than cost-per-point. The challenge is convincing clients to embrace this new mindset. Instead of focusing on broad, ineffective reach, there’s a push for “relevant reach” and “effective reach”—getting in front of the right people rather than simply hitting numbers.

One agency executive noted that the conversation around needing fewer GRPs to reach an objective is difficult. This is where alternative currencies come into play. As one publisher representative put it, "Data is the most powerful tool, and unlocking incremental reach is the most powerful thing you can do." Alternative currency systems give brands a better view of audience reach and relevancy, but even these systems need rigorous auditing and benchmarking—but how do you audit something that doesn’t exist yet?

Where Do We Go from Here?

The analogy to cryptocurrency, raised during the discussion, was particularly fitting. Just as you can purchase with USD, Bitcoin, or Ethereum, the video measurement industry may have to adapt to multiple currencies. The introduction of new players like iSpot offers flexibility but also complexity. 

The Joint Industry Committee (JIC) has exposed many of these complexities and will be crucial in helping us move toward a more standardized approach to measurement.

In the end, this is a marathon, not a sprint. The industry will need time to develop a unified framework that satisfies all stakeholders. While we may not have all the answers today, it’s clear that the video measurement landscape is on the brink of a new era. As brands, agencies, and platforms continue to experiment, we’ll see how the deals and preferred measurement means shake out over the next five years. Some say it could get worse, before it gets better. I would challenge everyone to participate in this era of learning. 

If you’re interested in submitting content for future editions, please reach out to our Managing Editor, Barbie Romero at Barbie@MediaPost.com.