Despite the introduction of a new TV ratings system, Advertising agencies will stick with legacy metrics for at least another year.
Media agencies in Australia have expressed a welcoming attitude towards the introduction of Virtual Oz (VOZ) tools for enhanced cross-media reach analysis.
However, they have indicated that they will continue to utilise traditional audience metrics for trading and reporting purposes until VOZ achieves the industry’s gold standard certification.
According to a report by Mediaweek, The transition is anticipated to be at least a year away, with projections suggesting the earliest adoption could occur in the final quarter of 2024.
Lucy Formosa Morgan, the managing director of Magna, emphasized the status quo in trading, highlighting that no third-party systems providers have yet achieved gold standard certification. Consequently, agencies will persist with using Total Audience Measurement (TAM) data for the foreseeable future.
The launch of VOZ streaming, anticipated to revolutionize measurement by enabling a unified view of viewer engagement across broadcast video on demand (BVOD) and linear TV, is eagerly awaited. Formosa Morgan believes that the introduction of VOZ streaming will eventually necessitate a shift in data analysis and trading practices but confirms that, for the moment, traditional methods will remain in use.
The exclusive reporting of TV ratings by media and networks using VOZ Total TV audience reach marks a significant shift. However, media agencies are set to continue their reliance on TAM alongside VOZ and other metrics for trading and reporting. The dual reporting system is expected to lead to some confusion, as noted by Paige Wheaton, head of investment at Initiative, who underscores the need for client education regarding the differences between total reach and average audience metrics.
Sue-Ellen Osborn, Sydney head of investment at Spark Foundry, raised concerns about the potential for misinterpretation of the large reach figures now headlining reports. She cautioned that these numbers, while impressive, do not accurately represent the reach an advertiser could expect from buying a spot in a program, due to the inclusion of viewers who may have engaged with the content for as briefly as 15 seconds on BVOD or one minute on linear TV.
Despite these challenges, there is industry-wide support for the transition to VOZ as a more comprehensive and relevant metric for cross-media reach comparisons. Chris Androulidakis, operations manager at PHD Australia, described the shift as a positive development for the industry, allowing for better cross-media comparisons. However, he noted that the change would necessitate adjustments in reporting, pricing structures, and negotiations, underscoring the complexity of the transition.
The move to VOZ as a trading currency represents a significant evolution in the industry, aimed at providing a more accurate and holistic view of audience reach across different media platforms. However, the transition is expected to be gradual and complex, with a focus on maintaining rigorous testing and validation of media channel decisions.
SOURCE: Mediaweek
