Debunking JIC Myths, Leveraging MRC: The Game and Transformation in Measurement

The strike launched by the Writers Guild of America (WGA) on May 2 is certainly headline-grabbing news that could disrupt negotiations between programmers and advertisers, but the changing measurement landscape is equally a focal issue this advertising upfront season—its impact could ripple across the industry and reset how the entire premium video and television ecosystem conducts business.

What measurement standards this multi-billion-dollar industry should adopt has become a core topic at recent events and may remain a point of contention in the weeks and months ahead. Stakeholders are trying to change an industry status quo long dominated by Nielsen, and some executives are outspoken about what a new measurement paradigm means for advertising.

"There's no question this will be a sea change, a reset of all business models—which, frankly, have been forced to accommodate traditional measurement for far too long," said Kelly Abcarian, Executive Vice President of Measurement and Impact at NBCUniversal, at a recent Advertising Research Foundation (ARF) conference. "The future will not fit past business models."

JIC progress and plans

ARF's AudiencexScience event gave Abcarian and her peers the opportunity to showcase and promote the recently formed Joint Industry Committee (JIC). The committee held its measurement summit on April 27 as its first upfront-season appearance. Launched in January, the JIC aims to achieve multiple currencies by next year's upfront season and establish cross-platform measurement solutions for streaming video.

Member organizations include major programmers, agencies, and advanced advertising firms OpenAP and the Video Advertising Bureau. At the JIC upfront event, OpenAP Chief Marketing Officer Brittany Slattery tried to "debunk" the myth that the committee only represents seller interests, insisting it also covers media buyers.

"We wouldn't be here without the support of our agency partners—they've helped us roll up our sleeves—and I've probably sent them too many emails over the past four months—to define together what this future should look like," Slattery said.

According to Bharad Ramesh, Executive Director of Research and Investment Analysis at GroupM, agencies have embraced the JIC—despite reservations or complex feelings on issues like video definition—because they cannot tell clients a unified story about ad frequency, brand clients have concerns about measurement standards, and there is a need to work with industry partners to find a way forward.

"If I'm standing outside the tent, I have no idea what's happening inside, let alone the ability to influence it," Ramesh explained at the ARF event.

Despite the rapid growth in JIC membership, several major players have yet to join. Ramesh said he would be "quite satisfied" if YouTube, Netflix, and Disney joined the JIC within the next 12 to 18 months. But multiple speakers said that even without several dominant streaming video companies, the JIC has made impressive progress—and quickly.

"There's still a lot of work to do, but I'm very excited about the pace at which we're moving," said Dan Aversano, Senior Vice President of Data, Analytics, and Advanced Advertising at TelevisaUnivision, at the ARF event, pushing back against critics who say the JIC is moving "too fast." "Coalition organizations are known for being slow, and the fact that we've accomplished this much in four months is incredible."

The organization's work so far includes drafting theinitial requirements for premium video cross-platform currencypublished in March. In the next two months, the JIC plans to determine how programmers will provide data to buyers and measurement companies, with use cases expected to be unveiled at the Cannes Lions International Festival of Creativity in June. After measurement companies connect to the data, the JIC will launch a beta version of its streaming data service in the first quarter of 2024, a key part of the JIC's commitment to advertisers.

"Marketers... they want data," said Jackson Bazley, Executive Vice President at ANA, at the ARF event. "At the end of the day, it's simple: measure everything, set attributes, and let us own the data so we can evaluate campaigns, evaluate performance, and make decisions."

The "elephant" in the room

Although multiple programmers, agency holding companies, measurement firms, and other industry organizations have expressed support, one major player—not surprisingly—is absent from the JIC: Nielsen. The struggling traditional measurement company is precisely what member organizations are trying to bypass to varying degrees through alternative currency development.

In an April 21 letter to OpenAP CEO David Levy and the JIC, Nielsen outlined multiple legal, operational, and scientific reasons for declining to participate in the JIC. The letter was signed by Karthik Rao, CEO of Audience Measurement at Nielsen. The issues include the JIC's preference for big data over panel data, the definition of "premium quality," the absence of major streaming platforms, and other antitrust and intellectual property concerns.

Rao also pointed to a "lack of clarity" regarding requirements for accreditation by the industry watchdog Media Rating Council (MRC) versus mere certification. The MRC is a neutral, nonprofit organization, as its CEO and Executive Director George Ivie emphasized at the ARF event.

"We're not actively advocating for a multi-currency environment, but we are actively seeking to audit and verify products that may participate in a multi-currency environment in a neutral way," Ivie said.

JIC members, however, poured cold water on Nielsen's claims about MRC accreditation. Nielsen just regained accreditation for its national television audience measurement service last month—after losing it in September 2021 for undercounting TV viewership. This month, Nielsen acknowledged similar issues affected itsSuper Bowl measurement, again raising concerns about undercounting. Additionally, several of its products, including Nielsen One Ads and its panel-plus-big-data integration, have not yet received accreditation. To some attendees, Nielsen seemed to be conflating the roles of the JIC and the MRC.

"Saying they want JIC certification to require MRC accreditation is, in my view, weaponizing the MRC—there's no other way to read it," said John Halley, President of Paramount Advertising, at the JIC event.

OpenAP CEO David Levy was "disappointed" by Nielsen's letter and noted that the JIC will not craft its requirements in a way that benefits only a single participant (for example, by focusing on panel data that Nielsen has long used rather than big data from other sources).

"Whenever you have the opportunity to listen to customer needs, you really should seize it," Levy said of Nielsen's decision not to participate. "We hope Nielsen continues to engage; we'll keep working to bring them to the table."

Whether it participates or not, Nielsen won't exit the stage anytime soon. Even programmers that have opened their doors to alternative measurement companies will still transact with Nielsen while meeting the needs of advertisers and their agencies.

"We're open for business with both VideoAmp and Comscore this upfront season," said Jon Steinlauf, Chief U.S. Advertising Sales Officer at Warner Bros. Discovery, at the JIC event. "It's not that we're closed to Nielsen, but some agencies are asking to negotiate this upfront season based on big data, and we're willing to do that."

Steinlauf questioned the scale, stability, and median age of the panel data Nielsen prefers, emphasizing that the measurement space needs innovation, better measurement, and a stable sample base. But he also called on the industry to avoid "dance partner syndrome"—where each participant only dances with the one who brought them.

"We should choose the best alternative, including Nielsen. If Nielsen is the best choice, then give Nielsen some business," he said. "As a collective, we have to think about who is doing the best work and support the best work."

The JIC is ready to move forward with its work, whether or not Nielsen participates (more likely not), to address real cross-platform measurement issues. At the JIC event, NBCU's Abcarian noted that CTV data sets have double- and triple-digit deficiencies, which could turn this fast-growing channel into a house of cards—where the needs of programmers, advertisers, and consumers are misaligned and unmet.

"This will undermine the foundation of what premium video deserves in value," Abcarian said. "We can no longer run a multi-billion-dollar industry this way."