Regardless of their dependence on Nielsen, programmers love complaining concerning the TV scores titan.
However Paramount International not too long ago went past griping when it introduced its contract with Nielsen had lapsed. Now, the broadcaster is counting on VideoAmp for its viewership numbers, which is as soon as once more sparking
Paramount’s transfer represents a severe shake-up as a result of TV publishers that use Nielsen alternate options (like VideoAmp, iSpot and Comscore) usually accomplish that in tandem with Nielsen, which has been the muse of TV advert measurement for many years. On this case, nonetheless, Paramount and Nielsen failed to return to an settlement in time for his or her contract renewal.
And Paramount has just a few bones to choose with Nielsen about how their unsuccessful negotiations went down.
“Nielsen has severed our long-standing measurement partnership with its unacceptable calls for, together with substantial value will increase,” a Paramount spokesperson instructed AdExchanger in an announcement.
Particularly, “Nielsen’s prices as a share of Paramount advert income have quintupled over vital components of our enterprise over the past years,” John Halley wrote in a memo to shoppers. That value construction “is just not workable and wishes reengineering.”
A brand new method to deal with TV measurement … or not
Regardless of the sturdy sentiment, a break from Nielsen’s companies isn’t ultimate for Paramount. Advertisers and media consumers have leaned on Nielsen scores because the Nineteen Fifties.
“Disengaging from Nielsen is just not our first alternative, and we stay longing for a decision,” Halley famous within the memo.
Nielsen additionally expects the 2 corporations to renew doing enterprise collectively quickly. “We look ahead to working with Paramount on a brand new settlement,” Nielsen stated in a (much more anodyne) assertion.
I imply, how lengthy can a programmer actually final with out Nielsen?
That query has been spurring loads of conversations on LinkedIn these days.
On the one hand, Paramount could possibly be a trendsetter.
“If Paramount is ready to do enterprise utilizing VideoAmp with out [a financial] draw back, then different programmers will naturally start thinking about making the identical transfer,” media measurement vet – and VideoAmp’s former chief measurability officer – Josh Chasin noticed on LinkedIn. “This can be a essential second.”
Chasin was commenting on a publish written by Marshall Cohen, an trade vet and media and advertising and marketing guide.
Cohen notes that Nielsen retains its service charges excessive not merely out of stubbornness, however as a result of its enterprise mannequin doesn’t go away a lot room for negotiation. If Nielsen lowers its costs for one consumer, in line with Cohen, they must decrease costs for everybody. “This,” he argues, may be very tough with non-public fairness house owners, who don’t perceive the enterprise [and just] need higher returns.”
Nonetheless, Cohen writes, it’s probably a renewed contract will – finally – put an finish to the contentious standoff between Paramount and Nielsen.
“Hardly ever, if ever, does a media firm go with out Nielsen scores for very lengthy,” Cohen says.
What I wish to know is that this: Will the contract dispute encourage different programmers to depend on measurement suppliers aside from Nielsen?
“As we are saying within the video enterprise,” Cohen writes, “keep tuned.”
