TiVo recently announced it purchased TRA, an audience research tech firm, for $20 million. The deal shows the importance of analytics and big data, and will close this month.
TRA provides analytics software to advertisers and network operators
. The company analyzes the buying behaviors of 1.5 million U.S. households and aligns them with certain types of TV advertising, working with more than 45 brand clients including Procter & Gamble, and Oscar Meyer. TRA also works with 27 TV networks like CBS, A&E and ION Media.
With the TRA acquisition, TiVo -- for years an investor and data partner -- "can now compete with top-level audience research companies like Nielsen and Rentrak," paidContent says
“With this new level of unique audience insights and analytics, TiVo will be able to provide insights nobody else has in an industry increasingly seeking alternative ways to measure audience behavior accurately while increasing efficiencies in media spending," TiVo President and CEO Tom Rogers said in a statement.
“In the digital realm you measure click by click and get increasingly granular information. This kind of metric has not developed well in the television space before now,” he added.
The metric gives insights into which networks or specific programming are best at selling different types of products, such as beer, cookies and cars. While Nielsen's numbers are informative, TRA's analytics resonate heavily with advertisers because they provide a deeper understanding of consumer behavior. Like online video analytics, companies that deploy these metrics can learn more about their audiences to ultimately drive higher sales.