Roku Acquires Nielsen TV Advertising Business, Announces Strategic Alliance

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Roku (NASDAQ: ROKU) and Nielsen Holdings (NYSE: NLSN) on Monday announced a groundbreaking deal that will take the streaming platform’s digital advertising business to the next level. Roku will acquire Nielsen’s Advanced Video Advertising business, which uses Automatic Content Recognition (ACR) and a Dynamic Ad Insertion System (DAI). This will allow Roku to digitally replace ads on linear television streams (broadcast) with targeted spots at household level on its over-the-top (OTT) streaming platform.

The companies also announced a multi-year pact that will integrate Nielsen’s rating measurement tools on Roku’s platform. The collaboration will significantly expand the ability to measure advertising performance on nearly 100 million smart TVs and other devices, helping marketers better monetize their addressable advertising.

Image source: Getty Images.

“Combining Nielsen [Advanced Video Advertising] Roku’s innovative advertising technology and scale will allow us to bring the benefits of streaming TV advertising to traditional TV, ”said Louqman Parampath, vice president of product management at Roku. “Roku will bring the promise of DAI to market for the first time at scale, delivering better targeting and metrics for advertisers, creating easy onboarding and additional revenue opportunities for ad sales teams across the world. programmers, and improving the TV experience for viewers. “

This is a further expansion of Roku’s digital advertising ambitions. In late 2019, the company acquired advertising technology company DataXu (pronounced “Data Zoo”), which enables marketers to plan and purchase video ad campaigns. The platform offers automated and self-service auction software to manage programmatic advertising campaigns on digital platforms.

Marketers spend more than $ 70 billion on traditional TV advertising, according to Roku. He cited data from Magna Global showing that while OTT makes up about 29% of all TV shows, it only accounts for 3% of TV advertising budgets.

This represents a huge opportunity for Roku, and these latest acquisitions better position the company to capture a much larger percentage of TV advertising dollars.

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