Nielsen's digital content ratings (DCR), which launches today, allows digital publishers to measure how people consume their content off platform, but this will not necessarily allow them to claw back revenue lost to digital tech giants, News Corp’s chief digital officer has warned.
Nicole Sheffield, who is also chair of the IAB, said that while the long-awaited launch of the daily DCR is a major evolution for how digital publishers measure performance and their battle for a slice of the digital pie, it does not mean they will be able to monetise traffic that is retained within off platform digital walled gardens.
DCR provides daily digital reach and frequency measures for publishers that allow software development kit (SDK) tags on their platforms. This covers more than 1,000 sites and 50 apps, including all of the major digital players in Australia – the first market in the world to roll out the daily measurement across video, audio and text. The US and Thailand have been trialling video-only for several months.
One of the major features is that it will measure how individuals consume publisher’s content on platforms like Facebook, Twitter and Google search, and combine these figures with on platform consumption to provide a more holistic view of how, when and where readers engage with their content - even on platforms they do not control.
In theory it should allow publishers to value how their content is used externally and find new trading models to commercialise this.
At a media briefing, AdNews asked Sheffield if publishers would be able to monetise off platform traffic.
“No, it doesn’t,” she said. “The first step is allowing for measurement that is industry-wide acknowledged and the next step is looking at how we monetise those.
“Just because we have an audience view doesn’t mean it is incumbent on that particular platform to come up with commercial terms of which every platform has different arrangements depending on who you are…it doesn’t necessarily mean revenue.”
Winning over media buyers
Sheffield pointed out that a major challenge for publishers would be trying to convince advertisers that they are better off monetising off platform consumption instead of dealing directly with those platforms.
“What’s the real value of coming to a publisher to get an off platform audience when I can go to Facebook or Google and get it directly for probably a lot cheaper and a lot more,” she posited. “When you are working off platform you are very much at their disposal in terms of what products you can use.
“I think in the traditional [media buying] space, [this will allow publishers to grow revenue]. But I think we are seeing more and more of those dollars not being booked via traditional means, that becomes the next big challenge.”
Digital publishers will inevitably have to negotiate with platforms to get a better clip of the ticket for the value of their content on platforms like Facebook instant articles and Google AMP.
To this end, digital content ratings, which have been developed in partnership with the largest pure play digital companies should provide publishers greater leverage to strike a better deal once the industry-wide measures become standard.
“If you want professionally-generated content, now you can measure on platform and off platform,” Sheffield added. “Whether you attribute a higher dollar amount or CPM amount – you should, and we’ll see – but this is what [DCR] allows.”
Sharpening a 'blunt instrument'
John Grono, an MFA consultant and Hall of Famer with deep knowledge of how media agencies use audience measurement believes DCR will “increase the brand value” of what publishers can offer but this might not necessarily translate to more money.
“It’s all about people and what proportion is in my client’s day part. [Publishers] internal analytics are fine for traffic but this will allow us to know the people,” he said.
“You were previously a blunt instrument because you are a monthly average and now you’re going to be as sharp as can be.”
Grono said this should allow publisher and client brands to match up.
“So [clients should] pay a premium if you can prove those brands match. We’ll know if that works by looking at the sales line and attribution model and then you’ll see if you pair those two together, the magic that happens,” he adds. “Then we try to work out what weight we need to put behind it.”
Trading in day parts - ‘Media agencies aren’t ready’
Another major benefit of daily digital content ratings is that digital publishers, in theory, should be able to trade in day parts for the first time, allowing them to mirror TV peak/prime time spots.
For example, publishers should be able to demand a higher yield for inventory that runs in conjunction with major events, such as an AFL grand finals or fashion week.
Measuring peaks and troughs throughout the day should also help marketers better optimise when they run ads on a media platform, but this doesn’t necessarily mean trading will change overnight.
“Publishers are ready, and this is very controversial, but I don’t think [media] agencies are,” Sheffield said, when asked by AdNews if indsurty was ready to trade in that way.
Do I think it will move quickly? It will move quickly once people see the numbers, get into the interface and start playing they’re going to go, ‘I need to sort this out, this is a real opportunity’,” she said.
“You can start to look at inventory just like you’d trade in television. Even if you didn’t sponsor Masterchef you can still get the lead in and lead out [on digital channels around the show]…marketers and agencies will get smart once they start playing with the data.
“It’s taking what we’ve learnt in traditional media for many, many years and what we’ve used to trade and marrying that with a very different trading model. We haven’t been able to trade on it or bring that level of transparency to our clients to improve the performance of their marketing and their campaigns.”
Sheffield believes DCR will vastly change the digital product set and could even evolve digital trading models.
“The easy stuff is Vogues Fashion Night Out and that should happen, the harder stuff is what does this look like in two years’ time when we’ve got these really meaningful data sets … you can start to have different conversations [with consumers] in the morning, lunch and dinner,” she said.
“Maybe we will go to auction? That’s the great about digital, once you have real time you fix rate card.
“The logical thing is how do we price time of day…but where do you then go? Data like this opens your mind to how do you keep opening up data sets. We have off platform but what’s the next off platform…when do you start fusing it with traditional media or even client’s data sets, it changes the whole landscape.”
Perspectives on DCR
Vijay Solanki, IAB CEO
“The Australian digital industry - which now accounts for half of all advertising spend – has always been world leading in the area of digital measurement. DCR is a game changer for the industry because it is daily, people-based and independent. It’s good for publishers and gives more precision to advertisers. It also helps create more transparency and more confidence for digital.”
Monique Perry, Nielsen's head of media industry group
“Digital measurement is a team sport and Australia is truly a world-class team. The industry in this market is incredibly engaged and constantly scrutinising and challenging our digital audience measurement solution. This collaboration and team play is not found anywhere else, and the number of world firsts for Nielsen delivered out of the Australian market is unmatched and reflected by this industry collaboration and commitment.
Alex Smith, Nielsen’s head of digital product
"This has been a complex environment to measure but an incredible opportunity to deliver the first and only daily, independent, people-based digital measurement solution. We are delivering daily audience data for both big and small sites, including on and off platform which will see us support the diverse and vibrant publisher portfolio in Australia."
Sophie Madden, CEO Media Federation Australia
“The MFA supports the continued drive to deliver day to day data and we appreciate the complexity and challenges involved in making this happen. Our agency members eagerly anticipate seeing the first data that is released, covering Video, Audio and Text on all the major platforms of PC, Tablets and Smartphones.”
Alex Parsons, Nine’s chief digital and marketing officer
“The move to daily ratings, in the form of Digital Content Ratings, represents an important milestone and is a clear sign of the increasing maturity of the Australian digital space. With more demographic and visitation data, digital publishers will be more empowered than ever to better provide marketers and their agencies the data they require to make more informed choices about where they invest.”
Clive Dickens, chief digital officer, Seven West Media
“Digital Content Ratings responds to the constantly changing and increasingly complex online ecosystem. Daily data is a game changer, and we are very much looking forward to seeing the inclusion of Seven West Media’s video in the coming period to add further independent measurement of our digital assets.”
Ed Harrison, CEO, Yahoo 7
"DCR takes us over a critical threshold. The importance of getting a comprehensive view of our audiences both on and off our own platforms, and across all devices, cannot be understated. As an industry we should celebrate the fact that this puts Australia at the forefront of global audience measurement."
Anthony Saines, managing director - commercial, Carsales.com
“DCR is the most sophisticated digital measurement system in the world. Nielsen and the IAB should be applauded for their commitment to ensuring that Australia keeps up with the changing media consumption habits of consumers and the ever more complex digital ecosystem.
Check out Nielsen's video on DCR, here.
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