If There Really Is An Ads Downturn, Measurement Companies Are Here For It

According to an Oarex analysis, digital media revenues significantly decreased in the third quarter, causing concern for companies like Google and Meta. However, one type of digital media company saw an increase in revenues during this time period: advertising measurement companies.

In the third quarter, several digital media companies, including Zeta Global, DoubleVerify, The Trade Desk, Hubspot, Integral Ad Science, and others, experienced revenue growth of 25% or more.  While we don’t have insight into the earnings of vertically aligned measurement companies in the direct response space such as Hyros and Wicked Reports,  you can bet they are experiencing a similar boon. 

In 2022, the advertising industry faced challenges due to signal loss, economic downturn, and reduced spending, leading to turmoil. However, some companies are using this as an opportunity to offer solutions for signal loss and form significant partnerships.  Or, at least they are pitching that they have ideas about how to reduce signal loss, as the industry as of yet has not seen a clear solution put into practice that really solves the problem. 

Digital TV is starting to be a key playground in the measurement conversation.  Hulu, Netflix, Etc.  Although streaming services and cord-cutting rates among US consumers have been increasing, some have questioned the accuracy of streaming and connected TV measurement this year due to the proliferation of ad-supported options and addressability issues on CTV devices.

Interestingly, some streaming media companies are beginning to engineer their own solutions in the way of data clean rooms and other initiatives. Firms such as The Trade Desk and DoubleVerify have been developing measurement solutions for streamers, broadcasters, and digital marketers. These companies have also entered into important agreements with streaming services. For example, The Trade Desk is collaborating with Disney on the ad-supported tier for Disney+.

The ongoing saga of measurement in direct response marketing is a prickly one, and one that’s not likely to be solved any time soon. We’ll continue to cover novel attempts at workable solutions and keep you in the loop if we find any game-changing technologies.