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Viacom Velocity and Vantage: Keys to Viacom’s Ad Portfolio

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Viacom Velocity

On January 25, 2016, Viacom (VIAB) announced that its Velocity team had entered into a partnership with Canvs, a “technology platform that measures and interprets emotionality in language.”

Viacom’s Velocity helps advertisers to design better marketing campaigns. The company has a proprietary tool, the Echo Social Graph, that “measures the effectiveness and virality of custom creative marketing campaigns.”

This tool will combine with Canvs to track emotionality across different social media platforms including Twitter (TWTR) and Facebook (FB) and provide “sentiment analysis.” Canvs maps emotions on social media platforms across 56 categories and is well-versed with millennial slang on social media.

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Viacom Vantage

Vantage was unveiled by Viacom last year. Vantage is Viacom’s data analytics platform. It offers advertisers campaign measurement and enhanced audience targeting. Viacom’s Echo is another data analytics platform. It provides advertisers with the ability to reach targeted audiences through social media.

Viacom Vantage has been a success for Viacom. In its fiscal 2015 earnings call, the company stated that the platform was in high demand by advertisers. Many companies are acquiring ad technology companies. Another example is 21st Century Fox’s (FOXA) acquisition of TrueX.

High hopes for Viacom’s advertising products

The company has high expectations for its advertising technology products Vantage, Echo, and Velocity. In fiscal 2015, Vantage was used by 11 advertisers. Viacom intends to triple the number of advertisers using Vantage by next year’s ad upfronts.

The reason for Viacom’s focus on monetizing Vantage is that Viacom’s top 100 advertising clients account for 75% of its advertising revenue.

Viacom accounts for 0.32% of the PowerShares QQQ Trust Series 1 ETF (QQQ). For an investor interested in exposure to the television sector, QQQ has 4.4% exposure to the sector.

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