Home Ad Exchange News Declines In Nielsen’s “Buy” Business Offset Q1 Growth

Declines In Nielsen’s “Buy” Business Offset Q1 Growth

SHARE:

Although Nielsen’s total revenue grew 3.2% to $1.5 billion in Q1, CEO Mitch Barns on Tuesday cited several challenges facing its Buy segment, which provides sales measurement and market share information to retailers and manufacturers.

While revenue for Nielsen’s Watch segment (Nielsen’s media and audience measurement business) was up 11.1% YoY to $769 million, Buy revenue decreased 3.7% YoY to $757 million.

US-based retailers and CPGs in particular face margin pressures, Barns said, so many Nielsen clients are cutting costs.

“First, consumer purchasing is trending toward local and specialty products at the expense of bigger brands,” said Barns during the company’s Q1 earnings call.

Second, brick-and-mortars face more pressure with the growth of ecommerce subscriptions.

“We’ve seen zero-based budgeting put downward pressure on clients’ spend and our business is not immune to the pressures they’re facing,” Barns said, “and that’s reflected in our numbers.” 

Despite these market challenges, Nielsen claims it’s making progress on an open data and analytics system servicing retail and CPG clients, launched last year.

About 25 companies participate in the Nielsen Connected Partner Program, which builds solutions or apps based on Nielsen’s platform infrastructure to service 49 brand or CPG clients.

But Nielsen also faces competitive pressures here from companies like Oracle, which owns Datalogix and intends to acquire Moat.

And other measurement competitors, such as IRI, are also encroaching on Nielsen’s territory.

Barns clarified rumors that Kroger was no longer providing data to Nielsen after the grocer announced an exclusive relationship with the competitive measurement provider IRI last summer.

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

Nielsen still has a relationship with Kroger in its Buy business, in which it aggregates sales data and market share information that it provides to all Buy clients.

However, Kroger no longer uses Nielsen’s retailer-specific analytics, which are provided to brand manufacturers, instead moving to IRI.

“At times we will be both cooperating and competing with third parties, particularly on the analytics side of our business,” Barns said. “Out strategy is to have an open approach.”

Must Read

Nope, We Haven’t Hit Peak Retail Media Yet

The move from in-store to digital shopper marketing continues, as United Airlines, Costco, PayPal, Chase and Expedia make new retail media plays. Plus: what the DSP Madhive saw in advertising sales software company Frequence.

Comic: Ad-ception

The New York Times And Instacart Integrate For Shoppable Recipes

The New York Times and Instacart are partnering for shoppable recipe videos.

Experian Enters The Third-Party Data Onboarding Business

Experian entered the third-party data onboarder market on Tuesday with a new product based on its Tapad acquisition.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Albertsons Takes Its First Steps Into Non-Endemic Advertising, Retail Media’s Next Frontier

Albertsons is taking that first step into non-endemic advertising next week via a partnership with Rokt to serve ads to people who have already purchased groceries.

Marketecture Buys AdTechGod (No, Really)

Marketecture has acquired AdTechGod – an anonymous ad tech Twitter poster turned one-man content studio – and the AdTech Forum, an information resource hosted by AdTechGod and Jeremy Bloom.

Why The False Advertising Lawsuit Against Poppi Is Bad News For RMNs

This week’s dispatch explores the new trend of false advertising class-action suits in the food and CPG industry and how the evolution of online, data-driven retail media could exacerbate the problem.