In the past week’s NewFront gathering in NYC, AOL, Hulu, YouTube and Yahoo all bragged on their new measurement offerings with some combination of comScore and Nielsen. The common message is that advertisers can now evaluate online and offline video in an apples-to-apples comparison. There is a decades long history of buying TV based on ratings. So the online video giants who want to tap into those enormous TV budgets are giving those buyers what they need to switch offline dollars to online.
The only problem is that it takes the industry backwards. TV ratings are the vestige of 1950’s technology. It measures that the TV was on a certain channel at a certain time. There’s no measure of whether the ads were watched, let alone engaged with in some fashion. As Baba Shetty puts it, we need HPAs (Humans Paying Attention) more than GRPs (Gross Rating Points). The recent New York Times article about how few online video ads are even visible aptly reinforces the point. Whether an ad runs alongside some content is at best a rough measure and at worst a deceit. Advertisers should push traditional TV networks to smarten their measures rather than reward online networks for dumbing theirs down.
