Nielsen Holdings PLC (NYSE:NLSN) has a lot going well regarding business model and growth strategy. Notably, the firm announced an enhanced Total Ad Rating reporting platform to incorporate a larger user base. In particular, the platform enables cross-platform measurement of ad viewership across platforms such as mobile phones, PCs and TVs.
The challenge of determining the real effect of ads
Interestingly, the advertising industry historically faces the challenge of the real effect of adverts. Notably, there is a possibility that content producers are not able to measure the real impact of ads to productivity. In this sense, Nielsen Holdings tracks the interaction between ads and their viewers such that the market can correctly determine their effect. Notably, the enhanced platform will also rope in audiences who utilize over-the-top (OTT) services. These are those using internet TV services.
The need for such an enhanced platform is to “provide media buyers and sellers with comprehensive, independent measurement across all platforms and help enable the market to monetize campaigns across TV and digital.” Notably, Nielsen uses the Total Ad Rating platform to determine viewership of ads. Further, the platform can decide if one is viewing a particular and across various platforms or with a combination of platforms.
Measurement of consumer behavior and viewing of ads
According to Nielsen, advertisers will use the service to determine the “true reach” of their content. Further, marketers can use the platform to showcase their ability to connect brands to those who view their ads. Interestingly, the enhanced platform coverage will enable brands to broaden their reach. Notably, Amanda Tarpey, a Senior Vice President at Nielsen reiterated their desire to enhance the Total Ad Ratings reporting. She said their core mission is to create a benefiting environment for all stakeholders in the advertising industry.
Interestingly, the platform enhancement comes just weeks after various clients confirmed the contract extension with Nielsen. Notably, Raycom Media renewed their agreement which entails a rating service for local television. In particular, Nielsen rates televisions in Raycom’s Code Reader, SET and LPM markets. According to details of the agreement, Nielsen will provide a comprehensive measurement of all local TV. Also, Raycom will receive insights on consumer behavior and viewing.
Demonstrating the value of the audience
Further, Nielsen signed a new agreement with Hearst Television in a deal focused on ratings and insights. Notably, Nielsen will provide its client with measurement services in the areas of television viewing and radio consumption behavior. The deal will cover 26 local markets in which Hearst Television has a presence.
According to Eric Meyrowitz, SVP, Sales for Hearst Television, they look forward to leveraging the audience measurements solutions from Nielsen. Notably, Hearst seeks to use the solutions to demonstrate the value of their audiences. Further, the measurements enhancements will enable Hearst to increase return on investment to affiliated advertisers.
Share price performance
Interestingly, the various positive reports are having the desired effect on Nielsen’s share price. The stock is revering from the downward spiral encountered in December 2018. Notably, the stock just crossed the 50-day moving average resistance after almost a month trading below it. Further, key indicators like the RSI show enough strength for the stock to recapture the high values it achieved in late November 2018.
Interestingly, the Williams %R shows that the share price is finally coming out the December bear market. Notably, the price shot to the overbought zone in less than two trading weeks. Further, as more investors buy up the stock, the share price is likely to go past the MA (200). At the moment, the 200-day moving average establishes resistance at $27.44. Given that the share price gained from $22 to $25.41 in less than two weeks, the stock could break resistance very soon.