Big news: Roku and Nielsen struck a deal that could have major implications for both addressable advertising and video ad measurement.
What Roku gets:
1) Nielsen’s Advanced Advertising (AVA) business
2) ≈ 100 employees
3) 700+ filed potents globally
4) Automatic content recognition (ACR) technology
5) Dynamic ad insertion (DAI) technology
How it will work:
1) Roku’s operating system, combined with Nielsen ACR, will know what is on TV for both linear and streaming
2) Roku offers networks the ability to replace the mass-targeted ad with an addressable ad through DAI
3) Networks offer addressable ads to marketers
What Nielsen gets:
1) Access to CTV viewership data from Roku’s 51.2M households bolstering the forthcoming Nielsen ONE currency (≈ 100M TV devices)
2) Nielsen’s Digital Ad Ratings (DAR) and Total Ad Ratings (TAR) integrated with Roku’s OneView buying platform
Worth the time: Tracey Scheppach brings us up to speed on how this deal could accelerate addressable TV.
Flashback #1: Matter More Media CEO Tracey Scheppach Shares How Addressable TV Is Reshaping the Industry
Why this matters: Significant demand exists for addressable TV advertising (see CTV). Still current inventory is primarily limited to 2 minutes per hour from the local pay-TV provider AND airing on a cable network, meaning ≈ 97% of TV ad impressions are not addressable.
What everyone wants:
1) Consumers – Fewer ads.
2) Advertisers – A higher return on ad spend (ROAS) with improved measurement.
3) Networks – A higher share of consumers’ time. More money from advertisers.
U.S. video ad spend by targeting method (% of total):
1) Non-Targeted – $46.3B (41%)
2) Addressable Digital – $38.0B (34%)
3) Data Driven Linear – $25.2B (22%)
4) Addressable Linear – $2.9B (3%)
Quote from Tal Chalozin – Co-Founder and CTO @ Innovid:
“It’s a vital part of TV as he who controls the operating system can build other things such as ad insertion and measurement. Look at how Microsoft won the PC era while Google and Apple won the Mobile era. Moving into the CTV era, Roku is making moves towards being the winner with this acquisition, gaining the ability to monetize time spent watching linear TV on their platform.”
Flashback #2: Innovid CTO Tal Chalozin On The New Normal of Digital Media
Flashback #3: Is Addressable TV Advertising Ready for Primetime?
Flashback #4: “Nielsen ONE” Intends To Be A Measurement For All
Video: Roku to Acquire Nielsen’s Advanced TV in a “Transformational” Moment for Television Advertising