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TiVo Research study uncovers up to $88m in lost ad revenue

TiVo Research have announced the results of a thorough examination of timeshifted primetime TV viewing watched between four to seven days after a program’s live airing (Live+4 to Live+7). The study reveals large increases in commercial viewership that are not captured in the current C3 metric and for which TV networks are therefore currently not compensated. The analysis, covering a wide range of networks and programs, revealed exact second-by-second program and commercial rating increases from five to 17 percent by extending the measurement window from four to seven days after broadcast.

In broadcast primetime, networks have the most to lose when utilizing the C3 ratings currency. Looking specifically at the commercial rating for ABC’s Modern Family, TiVo Research saw an increase of 10.9 percent by adding viewership from four to seven days after the telecast. Based on network television ad prices, as supplied to TiVo by SQAD LLC for this project, 10.9 percent equates to a per-spot increase of $26,665. Extrapolating to a single season, based on an average of 17 spots per episode and full season of 24 first run programs, the popular family sitcom is missing out on an estimated $10.9 million in revenue per year.

“Our unique commercial audience data demonstrates the real opportunity costs created by the gaping holes in the current C3 ratings currency and how filling in the blanks can help inform negotiations in this year’s Upfront. Commercial ratings based on second-by-second viewing data not measured by the ratings currency are the only way to capture user behavior in a DVR environment accurately, and therefore the only way to assess the potential value that could be unlocked by going deeper than the ratings currency,” explains Jonathan Steuer, Chief Research Officer at TiVo. “There’s a notion among some in the industry that by simply gaming the blunt instrument of average-commercial-minute measurement the ratings currency provides, networks can gain back some of the advantage advertisers get from unmeasured viewership beyond the three-day window. The reality is that only an extended measurement approach that combines both precise measurement of media viewership and a comprehensive understanding of audience composition can enable networks and advertisers to evaluate what commercial ratings truly are over the course of a seven day viewing period.”

 

 

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