The television advertising market is evolving with the increasing popularity of alternative measurement currencies or “alt currencies” used by both buyers and sellers. However, utilizing multiple rating currencies creates a challenge in managing conflicting data and determining the appropriate currency to use. This raises questions on how to establish a fair and transparent marketplace while ensuring accuracy in media buying and planning.
However, the real challenge is to resolve the clash of currencies. It may be up to the buyers and sellers to decide which currency to use based on their individual interests. This can lead to discrepancies in pricing and transactions as buyers may prefer a currency with a lower number and price for media while sellers may choose a currency with a higher number to earn more from their sales.
The TV advertising market can learn from past experiences, such as when Comscore and Nielsen faced off in the digital measurement space with competing metrics for online and mobile audiences. The issue was only resolved when Comscore acquired Rentrak, another media measurement company, and merged its capabilities with its own. The industry needs to find a solution to deal with the challenges of multiple cross-media audience measurement currencies, similar to how Comscore and Rentrak combined their strengths to provide a more comprehensive measurement solution for the digital advertising market.
To address the issue of pricing and transaction discrepancies, the industry must develop a clear framework for comparing and evaluating alternative cross-media audience measurement currencies. This includes metrics for sample size, bias, balancing models, and statistical smoothing. Establishing a transparent framework will ensure a fair and transparent marketplace, allowing advertisers to make informed decisions based on the metrics that matter most for their campaigns and audiences.
In conclusion, the use of alternative currencies in the TV advertising market is essential for the industry’s evolution, but it presents its own set of challenges. Resolving the clash of currencies is crucial to avoid pricing and transaction discrepancies. The industry must establish a clear framework for evaluating and comparing different currencies to ensure a fair and transparent marketplace for all parties involved, ultimately benefiting the advertisers who fund the market.
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