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comScore Idea Proposal (SCOR)

comScore Idea Proposal (SCOR)
 

Will comScore’s digital ad measurement business boost the company’s fortunes in 2017?

Report Available:May 11, 2017

 

Blueshift’s initial research found SCOR scrambling to deal with internal accounting issues that have temporarily halted trading of the company’s shares. At the same time, SCOR is facing off against NLSN and others as demand grows for measuring the reach and effectiveness of digital advertising. Advertisers and content producers have been unhappy with the accuracy of data surrounding digital audiences on FB and other platforms, providing a big opening for SCOR if it can prove its worth.

 

Observations

  1. SCOR is grappling with internal turmoil after NASDAQ suspended trading of SCOR shares in February because of the audience-tracking company’s continued inability to file required financial disclosures. SCOR has been re-working three years of financial statements after discovering last year that it had overstated 2015 revenue and understated its operating loss. In the wake of the accounting scandal, SCOR brought back its founder to run the company as CEO and is trying to file the necessary accounting statements with an aim of resuming trading on NASDAQ this summer.
  1. As SCOR tries to get its financial house in order, the company is locked in a battle with NLSN and others over the future of measuring digital viewership of both content and advertising. The fight is a crucial one. A SCOR study released this month shows younger consumers moving heavily towards digital content and away from traditional TV. Digital ad spending in the U.S. is expected to top $77 billion in 2017, while TV ad spending is projected at $72 billion, according to eMarketer.
  1. A key factor in the race to measure the effectiveness of digital advertising revolves around video ads on FB. After the social media platform was hit with several accusations last year that some of its ad statistics were off, the company said it had expanded its relationships with SCOR, NLSN and other data companies to improve measurement accuracy. Last month, SCOR announced that it could provide key viewability metrics for ads running on Facebook, Instagram and external publishers in the Facebook Audience Network.
  1. In Blueshift’s Jan. 6, 2016, report on NLSN, sources were mixed on whether NLSN or SCOR had the lead in digital video measurement, but most were waiting until more information was available about NLSN’s Total Audience Measurement and SCOR’s Xmedia. Four sources said developing a cross-platform measurement was the right strategy, but five were skeptical that it could be done accurately.

 

How does SCOR’s digital ad measurement platform compare to NLSN’s? Do advertisers want what SCOR is selling? Can SCOR grow revenues in its ad measurement business? Are new competitors in the ad measurement field a threat to SCOR and NLSN? To answer these and other questions, Blueshift will gather data and issue a market research report from independent sources in the following areas: Advertising agencies, Competing measurement firms, Publishers and Industry specialists.

 

Companies: comScore Inc. (SCOR), Facebook Inc. (FB), Alphabet Inc. (GOOG), Nielsen N.V. (NLSN)

 

Research Begins: April 24, 2017