Digital media firm Shazam has launched a new metric to help advertisers gauge the effect of their TV ad campaigns.
The “Shazam Engagement Rate” combines third-party industry data on the number of people viewing a particular ad with the number of people who engaged with that same ad through Shazam.
Combining the two data points reveals which ads are resonating more or less with viewers – with insights available by show, type of show, channel, day of week, day-part mix and other key television planning dimensions.
In a speech given this week at Cannes Lions, Shazam CEO Rich Riley unveiled the new metric and service.
“Shazam is already enhancing how millions of consumers around the world engage with TV advertising,” said Riley. “Now, we are able to help brand marketers measure the impact of their ad campaigns using powerful data-driven insights never before available, making it possible for companies to optimize their ad spend. At the core of this innovative service, Shazam is unveiling a new television advertising engagement metric, the Shazam Engagement Rate, showing brands when and where their ad is – or is not – resonating with their target audience, providing an invaluable and exclusive service to our clients.”
The Shazam Engagement Rate is defined as Shazam tag volume for each spot that airs divided by the gross rating point (GRP) for each of those airings. Shazam licenses this GRP viewership information from Nielsen, the global provider of information and insights into what consumers watch and buy, specifically for Shazam for TV performance reporting and generating insights. Shazam takes the industry-standard Nielsen viewership data and uses it to provide perspective and context to Shazam’s consumer engagement data.
“By showing brands where they are seeing actual engagement – not just viewers, but people who are leaning in and asking for more information – Shazam is able to provide an entirely new service to advertisers: measurement and accountability on how effectively an ad campaign connects with the target audience,” continued Riley. “This is a win-win proposition for consumers and advertisers. “Consumers have a one-tap, immediate way to get more information, receive special offers, and even shop on the spot with their mobile device. And, Shazaming a TV ad is also a great way to save it for later, essentially bookmarking it. Advertisers benefit from the direct consumer engagement, and as of today, gain access to insights on the relative performance of their ads airing across television.”
A recent study by NPD Group found that one of the top three activities that viewers are interested in when they use a second screen such a smartphone or tablet is to purchase or look up information about a product they saw in an ad.
As smartphones and tablets continue to grow in number, they are already beginning to outsell PCs and are set to become the primary method of accessing the Internet at home. This marks a shift in consumer behavior, requiring brands to optimize every opportunity to reach their target audience and make it as easy as possible for people to engage with the products that interest them.
Shazam for TV advertising enables 95 million Shazam users in the US and over 325 million users globally to tap one button in the Shazam App, and in a few seconds, arrive at a mobile-optimized experience built specifically for the brand campaign. Over 250 TV ad campaigns from over 150 A-list global brands – such as Pepsi, Toyota, Barclays, and Sony Pictures – have leveraged Shazam for TV to instantly provide more information, special offers, and the ability to shop directly from the couch. Brands are using Shazam for TV to ‘continue and complement’ their 30-second spots in several minutes of engagement on the ‘second screen’ – smartphones, iPads and tablets.
In addition to making TV advertising interactive, millions of people each month use Shazam as a TV companion app to get more information on TV shows and live events on 160 channels in the US, and to experience more via custom interactive second-screen experiences for major tent-pole TV events such as the GRAMMY Awards, Super Bowl, and the Olympic Games, as well as popular programs such as American Idol and The Voice.
The new service will be initially available to Shazam for TV advertisers in the U.S.