Circana expands media measurement capabilities with strategic acquisitions

Circana this week announced its plans to acquire NCSolutions (NCS) and Nielsen's Marketing Mix Modeling (MMM) business. This strategic move, set to close in the fourth quarter of 2024, aims to expand Circana's media measurement capabilities and increase its footprint in marketing mix modeling and unified measurement solutions. The acquisitions will bring together three major players in the consumer analytics industry, potentially reshaping the landscape of advertising effectiveness measurement and optimization.

Circana, formerly known as IRI and The NPD Group, has established itself as a leader in providing insights into consumer behavior across various industries. With a client base of nearly 7,000 brands and retailers, Circana's expertise spans from understanding consumer preferences to analyzing complete store and wallet data. The addition of NCSolutions and Nielsen's MMM business is expected to significantly enhance Circana's ability to offer comprehensive media measurement and optimization services.

NCSolutions, a joint venture between Nielsen and Catalina, has been at the forefront of improving advertising effectiveness. The company's approach combines scientific rigor with cutting-edge technology to empower the CPG (Consumer Packaged Goods) ecosystem. NCS specializes in purchase-based audience targeting and sales measurement solutions, which have proven valuable in optimizing advertising strategies across various media channels.

Nielsen's Marketing Mix Modeling business, on the other hand, focuses on assessing the impact of marketing investments and providing insights into marketing ROI (Return on Investment). The MMM division utilizes advanced performance models to analyze data with high coverage and granularity, enabling clients to make informed decisions about their current and future marketing strategies.

According to Kirk Perry, president and chief executive officer of Circana, the acquisitions will expand and enhance the company's media capabilities for its clients. The integration of NCSolutions and Nielsen's MMM business into Circana's existing infrastructure is expected to create synergies that will benefit clients of all three organizations. These benefits include broader access to audience targeting, media measurement, in-flight optimization, and clean room solutions.

The consolidation of these businesses under Circana's umbrella is anticipated to increase efficiency in the industry. By combining the expertise, solutions, and client bases of NCS and Nielsen's MMM with Circana's extensive data and technology assets, the company aims to offer better products and services that can fuel client growth through more targeted and impactful advertising.

Karthik Rao, chief executive officer of Nielsen, expressed confidence in the value that NCSolutions and the MMM business bring to their clients. As Nielsen refocuses its efforts on expanding its leadership position in audience measurement and content data, the transition of these businesses to Circana is seen as an opportunity for continued growth and acceleration.

The integration process will see both acquired businesses eventually becoming part of Circana's Media team. This team specializes in working with advertisers and their agencies to plan, target, activate, measure, and optimize media spend. Circana's media solutions portfolio is built on a robust enterprise technology platform, which incorporates actionable CPG and general merchandise shopper data, sales information, causal data sets, and advanced analytics.

The transactions are subject to regulatory approvals and the completion of required information and consultation obligations, including any necessary works councils' processes. This regulatory scrutiny is standard for acquisitions of this scale and nature, ensuring that the consolidation does not negatively impact market competition or consumer interests.

The financial details of the acquisitions have not been disclosed. However, the involvement of prominent financial and legal advisors suggests the significant scale of these transactions. Simpson Thacher & Bartlett LLP and Dentons served as legal advisors to Circana, while Morgan Stanley & Co. LLC acted as the lead financial advisor to Nielsen, with Bank of America Securities also providing financial advisory services. The legal advisory team for Nielsen included Gibson Dunn & Crutcher LLP, Baker McKenzie, and DLA Piper, while Weil, Gotshal & Manges LLP advised Catalina.

These acquisitions come at a time when the advertising and media measurement landscape is experiencing rapid changes. The increasing complexity of consumer behavior, coupled with the proliferation of digital platforms and advertising channels, has created a demand for more sophisticated measurement and optimization tools. Circana's move to acquire NCSolutions and Nielsen's MMM business appears to be a strategic response to these industry trends.

The consolidation of these businesses under Circana may also have implications for the broader marketing and advertising ecosystem. Advertisers and agencies may benefit from more integrated and comprehensive solutions for planning, executing, and measuring their marketing campaigns. However, the impact on competition in the media measurement and analytics space remains to be seen and will likely be a point of focus for regulatory bodies reviewing the acquisitions.

As the advertising industry continues to evolve, the ability to provide accurate, actionable insights into consumer behavior and advertising effectiveness becomes increasingly valuable. Circana's expanded capabilities following these acquisitions could position the company as a more comprehensive provider of such insights, potentially influencing how brands and retailers approach their marketing strategies in the future.

Key facts about the Circana acquisitions

• Announcement date: August 26, 2024
• Acquisitions: NCSolutions (NCS) and Nielsen's Marketing Mix Modeling (MMM) business
• Expected closing: Fourth quarter of 2024
• Circana's current client base: Nearly 7,000 brands and retailers
• Integration plan: Both acquired businesses to be incorporated into Circana's Media team
• Key benefits: Expanded media measurement capabilities, increased marketing mix modeling and unified measurement solutions
• Regulatory requirements: Subject to approvals and completion of information and consultation obligations
• Financial advisors: Morgan Stanley & Co. LLC (lead for Nielsen), Bank of America Securities
• Legal advisors: Simpson Thacher & Bartlett LLP and Dentons (for Circana), Gibson Dunn & Crutcher LLP, Baker McKenzie, and DLA Piper (for Nielsen), Weil, Gotshal & Manges LLP (for Catalina)