In Latest Effort To Challenge Nielsen Amid Streaming Boom, Innovid To Acquire TVSquared For $160 Million

Innovid and TVSquared, two companies focused on measuring linear TV and streaming, are merging in a $160 million deal aimed at providing a larger-scale alternative to Nielsen.

Innovid, whose shares trade on the New York Stock Exchange, is a connected TV advertising delivery and measurement platform. TVSquared is a privately held measurement and attribution platform for converged TV. The companies expect the cash-and-stock deal to close at the end of the second quarter.

The entire media marketplace is in a dynamic state given a number of factors, including Nielsen’s recent wobbles. While it remains the dominant provider of measurement, the company has conceded it under-counted linear and streaming audiences in 2020 and 2021. As companies emphasize streaming, which is largely viewed on demand rather than in live, linear fashion, the traditional reliance on age and gender ratings is being widely reconsidered. Nielsen itself is planning a new product offering designed to provide a more comprehensive look at viewing: Nielsen One, which will debut by the end of this year.

Along with the merger announcement, Innovid provided a preliminary report of its fourth-quarter and full 2021 financial performance. The company said it expects revenue for the full year to come in at $89 million to $90 million, which would be up at least 30% from 2020. TVSquared, meanwhile, expects total preliminary revenue for 2021 of between $20 million and $22 million. Final results will be released on February 24. 

“In acquiring TVSquared, we aim to provide the most complete view of the total TV and digital universe through a scalable, currency-grade measurement platform,” said Zvika Netter, CEO and Co-Founder of Innovid. “Additionally, we immediately accelerate and broaden our scope globally, as brands, agencies, publishers, and broadcasters on six continents rely on TVSquared to maximize reach, identify the right audiences and drive business growth with TV. As the market demands greater accountability, Innovid and TVSquared are reimagining the future of cross-platform TV measurement together.”  

After the deal closes, TVSquared founder and CEO Calum Smeaton will step down and take on a strategy role related to the integration into Innovid. Jo Kinsella, longtime president of TVSquared, will join the Innovid executive team, reporting to Netter and overseeing the measurement business.

“By digitizing cross-platform TV advertising, we believe this combination will give advertisers, across the ecosystem, everything they need to transact at scale,” Kinsella said. “Together, TVSquared and Innovid are at the center of TV’s transformation, meeting the market’s needs for a converged TV measurement alternative.”

Smeaton said the merging companies “share complementary visions to transform TV measurement through a comprehensive view of audiences across all devices and platforms worldwide.” The combined company, he added, will offer clients “one of the largest datasets of audiences, homes, and devices, at scale, across linear, CTV, and digital video.”