Regardless of their dependence on Nielsen, programmers love complaining concerning the TV rankings titan.
However Paramount World just lately 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 critical shake-up as a result of TV publishers that use Nielsen alternate options (like VideoAmp, iSpot and Comscore) sometimes accomplish that in tandem with Nielsen, which has been the muse of TV advert measurement for many years. On this case, nevertheless, Paramount and Nielsen failed to come back 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 advised AdExchanger in an announcement.
Particularly, “Nielsen’s prices as a proportion of Paramount advert income have quintupled over important components of our enterprise during the last years,” John Halley wrote in a memo to shoppers. That price construction “just isn’t workable and desires reengineering.”
A brand new approach to deal with TV measurement … or not
Regardless of the sturdy sentiment, a break from Nielsen’s providers isn’t superb for Paramount. Advertisers and media consumers have leaned on Nielsen rankings for the reason that Fifties.
“Disengaging from Nielsen just isn’t our first selection, and we stay looking forward to a decision,” Halley famous within the memo.
Nielsen additionally expects the 2 firms to renew doing enterprise collectively quickly. “We stay up for working with Paramount on a brand new settlement,” Nielsen mentioned in a (way more anodyne) assertion.
I imply, how lengthy can a programmer actually final with out Nielsen?
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That query has been spurring a number 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 get thinking about making the identical transfer,” media measurement vet – and VideoAmp’s former chief measurability officer – Josh Chasin noticed on LinkedIn. “It is a vital second.”
Chasin was commenting on a put up written by Marshall Cohen, an business vet and media and advertising marketing consultant.
Cohen notes that Nielsen retains its service charges excessive not merely out of stubbornness, however as a result of its enterprise mannequin doesn’t depart a lot room for negotiation. If Nielsen lowers its costs for one consumer, in response to Cohen, they need to decrease costs for everybody. “This,” he argues, may be very tough with non-public fairness homeowners, who don’t perceive the enterprise [and just] need higher returns.”
Nonetheless, Cohen writes, it’s seemingly a renewed contract will – ultimately – put an finish to the contentious standoff between Paramount and Nielsen.
“Hardly ever, if ever, does a media firm go with out Nielsen rankings 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 apart from Nielsen?
“As we are saying within the video enterprise,” Cohen writes, “keep tuned.”