July 17 (Bloomberg) -- Digital video-recorder maker TiVo Inc. agreed to buy TRA Inc., a research company that links households’ TV viewing to purchasing habits, for about $20 million to improve analytics.
TRA tracks about 1.5 million homes, linking TV exposure to purchase transactions, according to a TiVo statement today. TRA has more than 45 brand clients and 27 network clients, including Procter & Gamble Co., CBS Corp. and A&E Television Networks. The company helps advertisers know which networks or TV shows are most effective at selling products.
“TV has long been the best medium for advertisers to influence what consumers buy,” Tom Rogers, chief executive officer and president of TiVo, said in the statement. “TRA has proven its platform can determine the effectiveness of TV advertising by connecting the exposure of ads to actual purchases, helping advertisers identify the right audience and get the most out of their ad dollars.”
TiVo, based in Alviso, California, plans to expand its advertising research. TiVo’s customers include individual consumers, cable, satellite and broadcasting companies. TiVo had $238.2 million in revenue in the fiscal year ended Jan. 31.
The company’s shares rose 0.3 percent to $7.95 at the close in New York. The shares have declined 11 percent through today. The New York Times previously reported the purchase.
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