Roku expands the attain of addressable promoting with the Nielsen deal

Diving letter:

  • Roku will acquire Nielsen’s Advanced Video Advertising (AVA) business, which includes automatic content recognition (ACR) and dynamic ad insertion (DAI) technologies to accelerate the adoption of an end-to-end DAI solution for TV programmers an announcement.
  • As part of the new partnership, Roku’s OneView ad platform will integrate Nielsen’s “Always on” Digital Ad Ratings (DAR) for advertisers and enable publishers to use Nielsen’s Digital Content Ratings (DCR). In addition, the companies will integrate Nielsen ad and content measurement products into the Roku platform as Nielsen seeks to improve Nielsen ONE, its cross-media measurement solution.
  • The “strategic alliance” is intended to help both companies as video streaming becomes an increasingly important part of the TV landscape. The acquisition is expected to be completed in the second quarter of 2021. Roku expands its portfolio with employees from Nielsen AVA and the ACR and DAI patents from Nielsen.

Dive Insight:

With the partnership, Roku aims to take advantage of streaming TV advertising for traditional television as it continues to spend tens of billions of dollars on the format each year, Louqman Parampath, vice president of product management at Roku, said in a statement.

“Roku will bring DAI’s promise to market for the first time on a large scale – better targeting and measurement for advertisers, easy integration and additional revenue opportunities for programmers’ ad sales teams, and an improved TV experience for viewers.” Said Parampath.

The DAI solution that Roku plans to bring to market could make it a vital platform for marketers interested in addressable television advertising. According to eMarketer data cited by Variety, it is projected to hit $ 3.6 billion in the US by 2022, up 75% from August 2020.

For Nielsen, the partnership promises to expand the presence of nearly 100 million smart TVs and other devices on which the company can measure and better monetize addressable advertising. Adding a metering of ads and content on Roku devices could “speed the path to a single, non-duplicated cross-media currency,” Scott N. Brown, Nielsen’s general manager for audience metering, said in the statement.

The partnership follows Roku, which posted record revenue as audiences continued to grow and consumers spent more time at home due to the pandemic. The company’s fourth quarter revenue rose 58% year over year to $ 649.9 million, and revenue for the advertising platform business increased 82% to $ 471.2 million.

Additionally, Roku’s media distribution and ad buying platform OneView saw rapid growth during the quarter. Spending on over-the-top impressions (OTT) via OneView more than doubled, while spending on impressions on the Roku platform in OneView more than quadrupled in 2020. The OneView Ad Platform was launched last year and combines Roku’s advertising tools with the identity and attribution tools of Demand-Side Platform (DSP) Dataxu, which Roku acquired in 2019.

OneView is the company’s “bread and butter,” said Kristina Shepard, Roku’s director of East Coast sales and agency partnerships, on a virtual panel hosted by MediaRadar last month. The ad platform is the only way to deliver what advertisers are looking for in terms of reach and frequency, the ability to switch platforms, and the need to increase business results, she explained.

“”[Marketers] Get that bird’s eye view to help with frequency issues, “Shepard said of OneView.” In terms of addressability, you ensure that audiences are really only reaching their primary consumer, as opposed to much of the waste they waste by linear and then most importantly, actually measuring in terms of business results. “

While the Roku and Nielsen partnership is in traditional television, many marketers, brands and agencies are “desperate” to find an alternative to linear television, making OneView’s improvements even more important to the platform, Shepard said.

“The [gross ratings points] are not unique [on linear]The frequency is very high, the average age of the audience is 60. They urgently need to be replaced. So we’re a great alternative as we have a first-party customer relationship so addressability is available for every single impression we create and making money on the platform, “Shepard said.

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