Skip to main content

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

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

Apr 2021Cowen & Co.MaintainsOutperform
Apr 2021WedbushDowngradesOutperformNeutral
Apr 2021Evercore ISI GroupAssumesOutperform

View More Analyst Ratings for FB
View the Latest Analyst Ratings


Related Articles (FB)

View Comments and Join the Discussion!

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

Latest Ratings

GIKColliers SecuritiesInitiates Coverage On14.0
SANWLake StreetInitiates Coverage On6.0
LILAMorgan StanleyDowngrades15.0
BEJP MorganUpgrades36.0
NEXACredit SuisseUpgrades11.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at