LOST_TV_ratings

The TV business was once ruled by overnight ratings. Those metrics are becoming less and less meaningful in a world of mobile-first consumers. Online networks such as Netflix and Amazon don’t want or need third-party ratings. They know exactly what is being consumed, by whom, and when. Delivery and analytics are their core competencies. Additionally, Netflix and Amazon own their customer billing relationships, and whoever owns the customer usually wins.

Netflix’s (very expensive) decision to greenlight House of Cards was largely data driven. Netflix knew that the British House of Cards had been widely consumed by its customers. Director David Fincher’s The Social Network had been a Netflix hit as well, with an extraordinary engagement level. Netflix knew that the majority of viewers had watched the film from beginning to end—something a traditional TV ratings service can never really know. Netflix also knew that those who watched the British House of Cards consumed Kevin Spacey and David Fincher products. So Netflix was able to outbid HBO and AMC with confidence, on a $100 million bid for 26 episodes. The rest is history.

The reliance on data is not limited to Over The Top (OTT).

Networks and advertisers are working on more data-driven initiatives as well. Turner created a new data collection system called the Competitive Audience Estimation (CAE), which it believes will provide much better audience impression estimates. “CAE will tell us at 3pm tomorrow there will be 200,000 sparkling water drinkers watching a program on TBS, and that number is different at 3:30, it’s different at 4pm, it’s different next week at 4pm,” according to Dan Aversana, Turner’s senior vice president of Ad Innovation and Programmatic Solutions.

According to eMarketer, secondary guarantees made on advanced target delivery could account for as much as 15% of the inventory sold by network groups that are leaders in data-driven targeting for the 2017–2018 TV season.

By combining consumer purchase data with TV viewing information, marketers are better equipped to segment and target customers. Data must be treated like cash.


Other Articles You May Enjoy

About Shelly Palmer

Named one of LinkedIn’s Top 10 Voices in Technology, Shelly Palmer is CEO of The Palmer Group, a strategic advisory, technology solutions and business development practice focused at the nexus of media and marketing with a special emphasis on machine learning and data-driven decision-making. He is Fox 5 New York's on-air tech and digital media expert, writes a weekly column for AdAge, and is a regular commentator on CNBC and CNN. Follow @shellypalmer or visit shellypalmer.com or subscribe to our daily email http://ow.ly/WsHcb

Like it? Tweet it.

"Ratings Are Yesterday, Data Is Tomorrow" by @ShellyPalmer

600,000 subscribers and counting...

We write a daily newsletter featuring current events and the top stories in technology, media, marketing and entertainment.

Subscribe