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Shazam Inks TV Ad Pacts with A+E, AMC, Dick Clark Productions and Others

Shazam Entertainment, whose app is best known for ID’ing songs, is making an even stronger push into American TV.

The company has struck deals with partners including A+E Networks, AMC, Dick Clark Prods. and Fuse, under which they will be able to sell marketers that advertise on TV a second-screen extension of the ad in the Shazam app and promote their programming.

Previously, Shazam has worked directly with marketers and agencies to “Shazam-enable” TV spots, and to date has run 450 executions in which an advertiser puts the Shazam logo in their ad. With the new program, the company is looking to leverage the networks’ ad-sales teams to sell Shazam themselves.

“It becomes an owned-and-operated experience for the network,” said chief revenue officer Kevin McGurn, who joined Shazam last year from Hulu.

It’s not clear how big an opportunity Shazam represents for TV networks, at least today. Shazam claims to have 140 million U.S. users, but it doesn’t divulge average monthly users — a key metric. According to CEO Rich Riley, users worldwide perform 20 million “Shazams” per day, with the vast majority of those for songs. During this year’s Super Bowl broadcast on Fox, users initiated Shazam tags 700,000 times, less than 1% of the total TV audience.

“We are always looking for innovative platforms to expand our reach of our global television events and engage viewers with top brand partners,” Greg Economou, EVP and chief revenue officer of Dick Clark Prods., said in a statement. The firm recently worked with Shazam to enable second-screen ads for Chevrolet during the 2014 Billboard Music Awards.

Shazam’s Resonate sales platform lets networks offer advertisers enhanced content in the app, such as media to drive brand intent and awareness, and partners also can use the app to drive network tune-in. In addition, Shazam can track users who have ID’d specific programming and can retarget those consumers after a show’s broadcast on Facebook and in the Shazam app. “It literally connects the user who Shazam’d a show with the retargeting piece,” McGurn said.

Shazam can still sell second-screen ads directly to advertisers, but “we definitely don’t want to be in a situation where we’re stepping on the networks,” McGurn said.

Also Tuesday, Shazam announced results of a recent study commissioned from Nielsen to examine the effectiveness of “Shazam-able” TV advertising with brands including Absolut, Gillette and Jaguar. Among the study’s findings: Compared with conventional spots from the same brands, Shazam-enabled ads have 10% higher ad and brand recall.

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