I recently learned about a fascinating data-driven company called Simulmedia. They buy raw data from set-top box companies like Tivo and analyze it. Among many other things, they learn when a user watched what and and for how long. With a set of millions of users, they identify viewing patterns and can predict with certainty how receptive you might be to one television program given that you voluntarily watch some other one.
What’s interesting is their business model. Instead of selling the clean data back to the networks like we’d expect, they go back and ask, for example, “How many viewers would you like us to deliver to Mad Men?” Then they take the network’s own marketing assets, like a 15-second trailer, buy commercial slots on other networks, and target the viewers of specific shows who they know will be receptive to Mad Men. In turn, they get paid for the uptick they promised.
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