Dive Brief:

• This week, iSpot.tv acquired Ace Metrix in a deal that combines the providers of complementary measurement services for TV advertising. ISpot measures reach, conversion rates and brand lift for commercials on linear and streaming TV, while Ace Metrix surveys consumers for their reactions to ad creative, per an announcement.
• The combined companies have yearly contracts with more than 500 brands, including 100 large advertisers that are Ace Metrix customers, and 96% of the TV networks in the U.S. Ace Metrix's service will be integrated into iSpot's platform.
• The deal comes as many marketers seek a more unified way to measure the effects of their advertising as the media marketplace becomes more fragmented among traditional linear and newer, ad-supported streaming channels. Financial terms of the deal weren't disclosed.

Dive Insight:

Ace Metrix and iSpot are a good fit for each other in providing more comprehensive, real-time measurement tools for marketers. Ace Metrix examines how viewers feel about what they see while iSpot helps to measure the reach and business outcomes for advertising. The complementary services can provide a more complete view of the effectiveness of TV advertising in real time so marketers can optimize their buys. Ace Metrix's measurements include brand recall, purchase intent and likeability, among other metrics.

"We know that brands invest in TV and video advertising to drive sales and lasting brand equity with audiences, often in the same campaign and creatives," Sean Muller, founder and CEO of iSpot, said in a statement. "This acquisition represents an industry-first solution for measuring both business outcomes and brand impact together and in real time."

The deal comes as the digitization of the TV media market has led to a gradual rise in sales of ad inventory through automated online auctions, making real-time measurement more critical for brands. Before the pandemic, programmatic buying had been forecast to grow steadily over the next few years. The health crisis sped up the shift in viewing habits to digital TV platforms as homebound viewers looked for fresh programming. Consumers streamed programming from ad-free subscription services like Disney+, HBO Max and Netflix, and from ad-supported platforms like Hulu, Pluto TV, the Roku Channel, Tubi and Xumo. The dearth of live sports in the second quarter of last year was another driver of the shift to streaming.

While iSpot didn't disclose the terms of the deal, it consisted mostly of cash and other sources of financing, AdExchanger reported. Ace Metrix's revenue is more than $10 million a year, and it has grown by 30% a year, according to the report. Neustar, Oracle's Moat, The Trade Desk and OpenAp are among iSpot's ad measurement partners.

As part of the deal, Ace Metrix CEO Peter Daboll will join iSpot as chief strategy officer. Bellevue, Washington-based iSpot will hold on to the Ace Metrix headquarters in Los Angeles. With the addition of 45 Ace Metrix employees, iSpot will have a total of 240 people, per its announcement.