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TiVo CEO Tom Rogers on how the company is able to make its advertising more efficient with its purchase of the analytics software company TRA.
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Tivo has a brand new weapon in the war for ad dollars and it could be a game changer for an industry that's trying very hard to preserve those ad dollars only for very specific winds.
Tom Rogers is -- CEO and president he's joining us out of Fox Business exclusive from Mountain View California.
To talk about this Tom thanks so much for joining us you know the news is that you've -- this company -- TR day.
That as -- -- can actually figure out which households are most likely to buy into certain products how -- TRE do that.
Well it what it does it is and thank you for Iraq having me on it's great to be from a regular viewer what we do.
Is.
Measure what people or watching.
By data on a second by second basis coming -- a set top boxes.
And -- what TRA has been able to do is get the purchase data supermarket data from those exact same homes.
And over a million and a half homes now what they're able to do.
Is figure out what people watch and then what -- by not from sampling.
Not coming up with some statistical association.
But the actual data of what people watch and what they buy.
Done totally anonymously know so all privacy is maintained but you can actually see the relationship between advertising and.
Purchases OK so let me just -- -- viewers understand how this works a -- fraud and name and then you tell me how hypothetically of course it could work.
The coldest is talking about Hasbro -- we could use that -- -- say Hyundai because we like -- -- they advertise here on Fox Business but.
What is -- let's say they want specifically to market their high -- sit down the more expensive one.
How could you and TRA help them do that.
Well you would take a look that what networks.
Are actually.
Delivering.
The highest number of -- day.
Owners you might also look at which ones that are.
Delivering the greatest number of their competitors.
And then you probably look at that car manufacturers advertising spend.
And say wow this network over here and we did this for -- car manufacturer by the way.
This network over here.
Is spending.
Is getting 1% had to spend -- back car manufacturer.
But it's actually delivering.
10%.
Of that car manufactures owners now there's some real inefficiency there in terms of understanding.
Where its money's being spent.
And where's the actual owners of those right bars are watching television.
We can provide all kinds of data going forward that makes that a much more efficient process so the matching of the viewing.
And the purchase can be much better understood.
OK so do you have about that way to monetize -- I'm sure you're charging advertisers disabled will tell you that the people who watch lifetime are much more likely to purchase your product.
The the people upward spike TV.
Can this really at your bottom line.
Well the gaining networks including lifetime -- client of of ERA.
TRA by the way is the name of the company were acquiring but since its initials it happens to conveniently correspond how -- refer to it going forward -- kibo research and analytic.
And what.
We are able to do is sell this data and an easy and convenient way to access it.
Two television channels TRA already has 27 broadcasting cable channels of clients sell it to advertising agencies.
-- sell the brands as well they've developed about almost fifty brands that are that are clients of the service.
Well I would think because what we just -- General Motors saying you know what what our money's just going down the drain mad at FaceBook we're not getting a real -- this way it seems like it could be much more surgical let me just ask you though.
The big story out of dish was -- they've created this ad skipping hopper it's not out there just yet because of course is all kinds -- litigation but.
Does that negate all of this effort if people could just simply.
Jump over advertising.
Well you you -- a great pointless because.
Television has done a much better job than the newspaper and magazine industry or for that matter the music industry of preserving its core economics.
In light of digital challenges that have overwhelmed other other media sectors televisions preserved.
Most of the compensation system that has made for such profitability.
But there's some real challenges to a one is commercial avoidance people of course.
Originated the DVR and with that the ability for people think easily skip commercials.
But we decide a long time ago -- not only about changing the way people watch television we're about changing the way people measure watching television.
And that measurement part is highly challenged by the kind of technology innovation your talking about.
At the same time though there are a lot of commercial viewing getting through and you -- -- know what if it's effective and what of it is -- and what commercials aren't getting through you need this kind of dated.
Able to assess that what we need to get to commercial that's a country -- thank you very much.
Thanks for having me Tom Rogers is the president and CEO of -- on its acquisition putting some of that 500.
Plus million dollars in cash on its books to.
