Roku, one of the most popular streaming platforms in us homes, is acquiring Nielsen’s video advertisement business. Roku is one of America’s most successful streaming platforms, trying to become a central hub for TV advertising advertising.
Roku is acquiring Nielsen’s advanced video advertising unit. The acquisition means that Roku will also acquire Nielsen’s automatic content recognition and dynamic ad insert (Dai) technology.
For networks, this allows them to maximize their ad inventory value. Advertisers can better track return on investment for ads on a specific show or network.
There are more than 51.2 million Roku accounts using the platform to stream everything from live, linear television to streaming services like Netflix and Disney plus. Roku will be able to use its tech platform, and the new advertising tools, to provide the best, focused advertising for firms across both linear TV and streaming video.
Nielsen’s advanced advertisement group’struck deals with Disney, CBS, discovery, Fox, NBCUniversal, warnermedia, A+E networks and AMC networks’. Roku’s new deal means it’ll be able to take a cut of the ad inventory that would come with new deals.
Nbcuniversal executives were trying to negotiate with Roku over bringing their new streaming service to Roku devices. A large part of the delay came from disagreements over advertising inventory. Roku typically takes 30 percent of ad inventory, but works out specific deals with each partner depending on the offering.
Roku grew its user base by roughly 40 percent between 2019 and 2020. Its ad-supported Roku channel reached approximately 61.8 million people in the US in the fourth quarter.
The unit will work off more than 100 million connected devices instead of 55 million, axios says. Spending on addressable TV advertising in the United States is expected to hit $ 3.6 billion by 2022, up 75 % from August 2020.
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