Market Overview

The Primary Winner Of Facebook's Expansion In Video Will Be Third-Party Measurement Firms

The Primary Winner Of Facebook's Expansion In Video Will Be Third-Party Measurement Firms
Related FB
Facebook Vs. Twitter Vs. Snapchat: How Do Key Statistics Compare?
How Truck Stops Could Drive The Electric Revolution
Total USD Portfolio Review - January 2019 (Seeking Alpha)

Facebook Inc (NASDAQ: FB) might boast content agreements with Discovery Communications Inc. (NASDAQ: DISCA), A&E, Univision and the widely-followed Indian Premier League.

But that may not be enough to re-earn the esteem of advertisers, on whom its Watch project relies.

Measurement issues at Facebook have been top-of-mind for many of those same marketers over the past year given revelations around overstated average video viewing time, video viewing completions, miscalculations of organic page reach and other data which impacts how budgets are planned,” Pivotal Research analyst Brian Wieser wrote in a Thursday note.

On Tuesday, Wieser revealed exaggerated audience estimates, with Facebook Ads Manager claiming a reach of 41 million 18-to-24-year-olds and 60 million 25-to-34-year-olds. The 2016 U.S. Census only calculated 31 million and 45 million Americans in those respective brackets.

The exposed embellishment may justify continued strength in TV’s share of advertising, as well as increased referral to the likes of Nielsen N.V. Ordinary Shares (NYSE: NLSN) and COMSCORE, Inc. (OTC: SCOR) to corroborate viewership records and appraise Facebook ad opportunities.

“While we think the company is positioning itself to compete for TV budgets with TV-like content, we think that the large marketers who dominate TV advertising will only do so after applying significant scrutiny to the metrics associated with Facebook campaigns,” Wieser wrote. “As these products generate revenue on a campaign basis, growth in Facebook, YouTube and other digital media will continue to provide growth support for third party measurement companies.”

Pivotal maintains a Hold rating on Nielsen with a $38 price target and a Sell rating on Facebook with a $140 target. At the time of publication, Nielsen was trading at $38.77 and Facebook at $172.43.

Related Link: So What's The Difference Between YouTube And Facebook's New 'Watch?'

Latest Ratings for FB

Jan 2019Raymond JamesMaintainsOutperformOutperform
Jan 2019NomuraMaintainsNeutralNeutral
Jan 2019Deutsche BankMaintainsBuyBuy

View More Analyst Ratings for FB
View the Latest Analyst Ratings

Posted-In: Brian Wieser comScore Pivotal Research GroupAnalyst Color Analyst Ratings Best of Benzinga


Related Articles (DISCA + FB)

View Comments and Join the Discussion!

Latest Ratings

CBBMorgan StanleyUpgrades10.0
GDCredit SuisseDowngrades184.0
GEOJP MorganDowngrades26.0
TRUERBC CapitalDowngrades0.0
View the Latest Analytics Ratings
Don't Miss Out!
Join Our Newsletter
Subscribe to:
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
Your weekly roundup of hot topics in the exciting world of fintech.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

4 Catalysts Driving A Bullish View On Restaurant Brands

Amazon's 'HQ2' Will Turn A City Into An Instant 'Mini Silicon Valley'