Comcast Corp.’s NBCUniversal has been reluctant to support OpenAP, a TV audience targeting concept from a consortium of TV networks, instead touting its own data and targeting efforts.
Now, the media company is changing its tune.
NBCU is joining rivals Viacom Inc., VIAB -0.57% Turner and Fox in their effort to advance TV ad targeting, the company said.
The goal is to “build a significantly more accelerated advanced ad business for all TV programmers,” said Krishan Bhatia, executive vice president of business operations and strategy at NBCUniversal. “We felt that our capabilities, plus the fact that there’s a consortium of three other media companies, helps us do that collectively and more effectively than any of the independent companies.”
Viacom, Turner and Fox joined forces over a year ago to start building OpenAP, a system intended to standardize the precise categories ad buyers can purchase in TV. That way, an advertiser who wants to reach people in the market for a minivan doesn’t have to deal with different data approaches at different networks when trying to identify which shows best reach their audience.
The OpenAP consortium is asking media companies to pay $2.5 million for an “equity” membership, which includes a board seat, in addition to $1.5 million a year with a five-year commitment, according to people familiar with the matter. Altogether, that’s a $10 million buy-in. A membership that does not include a board seat still costs up to $1.5 million a year.
NBCU is an equity partner, but the network is also licensing data capabilities to OpenAP, with remuneration.
One of NBCU’s products matches marketer data to TV viewership data – from Comcast and other sources -- so advertisers can identify which shows capture viewers that look most like their customers.
That means that when an advertiser logs into OpenAP, they’ll be able to select data segments from various sources, including Nielsen, Comscore and a custom segment option, which is a product of the NBCU licensing deal.
Marketers over the years have moved portions of their media budgets to companies like Facebook and Google that enable them to reach specific consumer audiences and individuals. TV networks are now working together to prove that they can compete with digital media giants. But NBCU and others have been slow to sign on.
It took some time for the members and NBCU to agree on a common goal, said Mr. Bhatia. “We always felt strongly that unless a consortium actually accelerated the capability set and the underlying business that we were better off continuing to invest in our own capabilities.”
Now, everyone is more aligned, he said.
“It will help accelerate the entire ad business,” he said. “It’s good for marketers, agencies and programmers.”
Write to Alexandra Bruell at alexandra.bruell@wsj.com