Following other TV groups, Nexstar Media Group’s broadcasting unit, one of the largest owners of U.S. TV stations, will move to a cost-per-impression (CPM) model from household ratings for selling advertising. As with other TV companies, Nexstar says impressions provide more granular data of viewers watching a program or commercial. More importantly, this positions TV stations against increasingly competitive digital media platforms.
Berkshire Hathaway’s ABC affiliate in Miami says the switch will give advertisers an easier way to purchase schedules across all of its ad platforms.
Several speakers at the TVB Forward conference touted the benefits of buying and selling spot TV using impressions rather than conventional ratings points.
Impressions-based advertising will not be the last word in consumer measurement, but it is an important transitional step to the future. In a few years we will look back and wonder why it took so long.
“We have always focused on providing large, quality audiences to our advertisers,” said Jordan Wertlieb, Hearst Television’s president. “Today’s video marketplace requires contemporary measurement metrics.”
The two station group chiefs say they welcome the TVB’s plan to transition to impressions-based local TV currency.
“In our current multiplatform world, everything is now being sold on an impression basis except linear TV,” says TVB President Steve Lanzano. “We want local TV stations and the ad agencies to be able to sell and buy that way, too. We have been working with the buying agencies for some time behind the scenes and now we are going public.”