ComScore To Google: Go Ahead, Make My Day
But in a conference call hosted by Jeffries & Co. today, ComScore CEO Magid Abraham talked down the threat and threw down a gauntlet. If he really did think Google was going to eat into his business, he said, he'd retaliate by giving away his data to ad agencies: "We will give the damn thing to agencies for free".
But, after looking at AdPlanner, Abraham says he won't have to, at least not yet. He drew an analogy to the Web analytics market, where the presence of another free Google service, Google Analytics, hasn't yet displaced a very expensive offering from Omniture.
Fees from ad agencies account for 10% of comScore's revenue, so Abraham could theoretically make good on his promise without permanently crippling his business. But he's betting on the fact that he won't have to, primarily because of agency inertia - once they've settled on a standard, they're loath to give it up (just ask TV and radio broadcasters about Nielsen and Arbitron, respectively). They are also leery about using an analytics product provided by a company they think is trying to run them out of business (and is also a customer/partner - hence "frenemy").
That said, agencies and other media companies do seem willing to integrate more sources of data, not less. So comScore may be forced to rethink its pricing structure at some point, regardless of what Google does. A number of agencies are testing another free free media planning-and-analytics tool from Quantcast, which is getting positive reviews in the agency world.
See Also:
ComScore Hammered By Google Again - This Time By "AdPlanner"
Google Moves in On comScore, Nielsen - Again
ComScore Buys M:Metrics For $44.3 Million Cash, Plus Options
By giving away his stuff what exactly is her trying to do? the posture of this article is funny with the Dirty Harry picture. Google has nothing whatsoever to lose from ComScore giving their stuff away. Sure, give it away, they say. I am not sure if anyone at Google even cared about ComScore when they released their freeware. They were doing it for a different reason.
yea that would be like agencies in China buying TV Ratings from CCTV, crazy idea! Oh wait, hold thats exactly what they do!
This is a funny title and I got a lot of grief over it. However, I want to make it clear that I never used those words nor did anyone at comScore. I don't think this is about Google competing with us as it is about them providing a planning tool that helps sell more advertising on the Google ad network, particulaly to the long tail. Obviously some of our users will use Google's tool and vice versa, but I believe we fundamentally provide a very comprehensive research and planning suite that meets the needs of sophisticated agencies with clients in multiple categories, particulary offline. We have a strong value proposition that "free" does not equate. My rhetorical comment about "giving it away" is a response to those who think this is a comScore killer.
Google remains a valuable customer, and as such, it makes my day.
Magid
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