Nielsen, the data and market measurement firm, announced the launch of a new solution, Streaming Signals, which is expected to help connected TV (CTV) operators and advertisers better identify which member of a household is watching the video content on the CTV. This is expected to help media sellers and buyers better measure and optimize their CTV reach for efficient advertising and delivery to the audiences and maximize ad revenues.
See more: Digital TV Advertising: Ready To Cross the CTV and OTT Advertising Hurdles?
How the Solution Works
The solution uses Nielsen’s panel data, CTV provider’s viewership data, and machine learning (ML) algorithms to assign personal-level demographics. Once integrated, the CTV provider notifies the Nielsen system and receives a signal with information about who could be watching the content in the household. Accordingly, the provider can play a more relevant ad instead of a previously reserved ad.
Talking about the new solution, Ameneh Atai, general manager digital and advanced TV, Nielsen, saidOpens a new window , “We know that the media industry is going through accelerated change, switching to a streaming-first approach, and with an audience watching programming whenever, wherever, and on a number of devices.†She further said, “Nielsen Streaming Signals brings a layer of unmatched real-time, person-level demographic precision to audience optimization,â€
The solution is well-suited for Nielsen Digital Ad Ratings (DAR) customers. Nielsen’s DAR makes it possible for its customers to understand who they have reached by the viewer’s age and gender during the ad campaign. In turn, advertisers can use either contextual or behavioral targeting to deliver the right ad to the person. Together with this solution, the new solution is expected to make ad delivery more accurate and relevant.
The Need for the New Solution
Consumers are increasingly moving away from linear TV while CTV viewership is growing in popularity. A study by The Trade DeskOpens a new window predicted that 27% of U.S. households were planning to cut the cord on their cable subscriptions in 2021. This was almost twice of those who did that in 2020. Simultaneously, a study by AdjustOpens a new window showed that about 82% of U.S. households had at least one smart TV or a TV connected to the internet. And the number of households watching a streaming device, OTT platform, or a CTV is growing. This presents a huge opportunity for CTV advertisers and service providers in terms of revenues.
However, at present, most advertising on connected TV happens on a household level, where there are many members of different age groups and interests. For example, one person may be interested in watching shows like The Queen’s Gambit, while another may be interested in watching cooking or travel-related shows. A person who watches travel-related shows may be interested in certain types of equipment, while they may have no interest in buying a kitchen appliance. Similarly, a person watching a cooking show may have no interest in advanced gadgets. As such, ads need to be tailored to a person’s interests. The type of shows a person watches can provide the right signals for the CTV operator and advertiser.
The Streaming Signals solution uses custom ML models to identify who in the household is watching based on their viewership history and transmits a signal to the operator within a short period. This helps the advertisers and agencies to make better decisions and serve the right ads to the viewer instead of irrelevant ones. Hence, a person interested in traveling may be served ads about camping gear instead of a microwave oven with advanced settings. In turn, media owners can attract a higher media revenue by packaging their ad inventory in a more accurate way.
See more: 3 Reasons Why 2022 Will Be “The Perfect Storm†for CTV Advertising
What Industry Leaders Are Saying
The Streaming Signals solution has received support, and at the same time, a little indifference, from industry leaders. For example, talking to The DrumOpens a new window , Stephen Strong, co-founder, Origin, said, “The new Streaming Signals product is certainly a step in the right direction for Nielsen, but they still have a lot of work to do — as with any new launch, there are going to be questions of validity and accuracy.†He further said, “This particular product does help fill clear gaps within the CTV space. Moving from household to individual user on CTV is important, and this product helps increase innovation and provide more granularity around viewership, as there is greater access to data in a real-time way — so it is actionable immediately.â€
Having said that, Strong also said that Nielsen was not a pioneer in providing viewer-level insights as businesses like TVision already offer products that identify who is viewing content on the CTV.
The new solution comes ahead of the expected launch of Nielsen OneOpens a new window in the fourth quarter of 2022, which looks to unify the company’s audience measurement products.
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