Cable Technology Feature Article
TiVo to Acquire TRA, Advertisers Stand to Benefit
By Mini Swamy, TMCnet Contributor
Advertising has always been an integral part of the television entertainment market, but the evolution of a new genre of viewers has made it difficult for advertisers to determine the effectiveness of TV advertising by measuring audience behavior accurately while increasing efficiencies in media spending.
TiVo's (News - Alert) proposed acquisition of TRA, Inc. is expected to set this right by helping connect television viewing with purchases and prove the ROI of television, according to company officials.
"TV has long been the best medium for advertisers to influence what consumers buy. TRA has proven its platform can determine the effectiveness of TV advertising by connecting the exposure of ads to actual purchases,” said Tom Rogers (News - Alert), CEO and president at TiVo.
Existing measurement tools don't seem to have kept pace with advances in technology and hence are generally ineffective in helping advertisers identify the right audience and get the most out of their ad dollars.
But TRA, which links television exposures from 1.5 million TV homes with specific purchase transactions, claims to be able to bring Internet-level measurement and accountability to the TV advertising industry.
TRA has also driven a substantial client list of advertisers, agencies and networks, and with a new level of unique insights and analytics, TiVo claims to be well positioned to provide insights in a way that nobody else has.
If this happens, then TiVo's position in the billion dollar television analytics will improve with the acquisition of the world's largest database of viewer linked information.
"TiVo has been a valued investor and data partner of TRA for several years, making this combination a natural next step for TRA,” said Mark Lieberman, chairman and CEO at TRA.
Lieberman added that TRA shared TiVo's vision and prescription for the future of measurement and is eager to continue providing world-class solutions to the industry.
TRA has more than 45 brand clients and 27 network clients. Some of them expressed satisfaction that the two powerful innovators were getting together to provide clients with the most efficient and effective television investment possible, and were looking forward to the tremendous impact of the actual combination.
TiVo will pay approximately $20 million for TRA and it expects the transaction to close this month.
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Edited by Braden Becker