Viacom CEO Philippe Dauman said the programming giant will increase its non-Nielsen dependent ad revenue from 30% of total sales to more then 50% in the next three years, fueled by mobile apps, dynamic ad insertion and increased sponsorship revenue.
The news comes as Viacom’s ratings have declined steadily over the past several years – the programmer also had a high-profile spat with Nielsen over ratings issues at its Nickelodeon network a few years ago. Ratings pressures also added to a domestic ad revenue decline of about 5% in the just-ended fiscal fourth quarter.
On a conference call with analysts to discuss quarterly results Thursday, Dauman said the goal is to boost non-Nielsen related revenue in the next three years through SVOD relationships and new deals with online distributors like Sony. He added that the company also plans to boost sales through new apps, new mobile products, dynamic ad insertion, increased sponsorship opportunities and integrated marketing opportunities.
Viacom stock was up more than 2% ($1.58 each) on the news to $70.83 per share in early trading Thursday.