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Industry Contributor 26 Aug 2019 - 2 min read

Why the Viacom-CBS merger is a game changer - really

By Professor Karen Nelson-Field, Executive Director - University of Adelaide, Centre For Amplified Intelligence

After months of negotiations CBS and Viacom are merging to become ViacomCBS. While there are reportedly many commercial advantages of merging (including more programming content, a boost to ad-supported streaming video and greater leverage over carriage fees), this article talks about the opportunity this merger presents to advertisers in that it will fuel new technology for better targeting on addressable TV. (Wall Street Journal)


Key points

  • CBS and Viacom are uniting their complementary assets and capabilities. 
  • This combination of depth of content, wide reach and advanced targeting capabilities makes them one of only a few media companies in this space (particularly in the TV space).
  • Advertisers are expected to spend $67.23 billion on U.S. TV ads in 2019, a 1.4 per cent decline from 2018.
  • This merger should truly transform the future of the TV industry, in many ways.

Mark my words. This merger will change our industry. Finally we have a media business that can combine major reach AND digital's targeting capability (without being an online platform where poor viewability and ad fraud significantly waters down the value of its big reach). 

Equally importantly, this article discusses their intention to use the Vantage technology for good not evil – meaning they are looking to target category buyers not traditional hyper targeted demographics. Demographics have a limited to zero relationship with actual buyer behavior and have been likened to a horse and cart in the age of space travel, yet we continue our media buying journey by horse and cart.

All they need now is a purchase layer. Let me explain. In 2017 some work was done out of the USA by Rubinson Partners, Nielsen Catalina Solutions (NCS) and Viant. The authors gathered in-store actual purchase history from NCS to determine buying segments and modelled their expected buying windows. Then, using look-a-like modelling buyer segments (via Viant) were exposed to brand campaigns online, close to their expected buying window (based on the grounded principles of recency). And voilà – incremental sales were achieved. 

Reaching category buyers via purchase-based targeting, where purchase data is used to build look-a-like consumer segments for targeting, is the holy grail. But underlying reach quality is becoming more and more elusive and unfortunately the online platforms that have traditionally had the greatest capability to roll out look-a-like targeting, close to the purchase occasion, are more likely the culprits of poor ad delivery. Until now.

What do you think?

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