MTV and VH1 suffer significant viewer exodus during commercial breaks--in the range of 13%, according to a Magna Global report. But if MTVN can show that viewers who stick around remember and/or act on the messages conveyed, it can deliver a selling counterpunch.
The amount of viewer retention during ad breaks is playing a prominent role in the current cable upfront, particularly for MTVN. The company has indicated that it would prefer to make deals based on the traditional program ratings, rather than the new commercial ratings many networks use. The IAG Research deal shows it may be open to offering guarantees based on levels of viewer engagement.
A call to MTVN was not returned at press time.
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Hank Close, MTVN ad sales president, said in a statement that the IAG data can offer advertisers insight into "the true ROI on their television ad spend" and "more accountability for MTV and VH1."
MTVN also has a separate deal allowing advertisers to alter ad messages almost in real-time. It's a chance to change creative-based on marketplace twists, such as new sales for retailers or reports that a new movie is a smash, via a new technology infrastructure.
It's unclear whether the IAG deal represents an extension for MTV, rather than a launch, since MTVN said IAG already measures viewer response to ads and product placements on MTV. It will add VH1 to its duties this fall.