Document Analysis NLP IA
FREQ, RAKE or TFIDF
Summary (IA Generated)
Roku, one of the most popular streaming platforms in US homes, is acquiring Nielsen’s video advertisement business as it tries to become a central hub for TV advertising.
Specifically, Roku is acquiring Nielsen’s Advanced Video Advertising unit.
Think of ads for products people might actually want playing before a YouTube video compared to seemingly random ads playing on CNN.
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.
Think of ads for products people might actually want playing before a YouTube video compared to seemingly random ads playing on CNN Prior to the announcement, Nielsen’s advanced advertisement group “struck deals with Disney, CBS, Discovery, Fox, NBCUniversal, WarnerMedia, A+E Networks and AMC Networks,” according to Variety.
When NBCUniversal executives were trying to negotiate with Roku over bringing their new streaming service, Peacock, to Roku devices, a large part of the delay came from disagreements over advertising inventory.
NBCUniversal executives didn’t want to give up a significant portion of their advertising revenue (Roku typically takes 30 percent of ad inventory, but works out specific deals with each partner depending on the offering).
Peacock is also ad-supported, and NBCUniversal developed its own targeted digital advertising technology to try and persuade advertisers to place commercials on the platform.
Roku’s tech platform and scale is exactly what Nielsen’s Advanced Video Advertising unit needed.
So many people in the United States have Roku devices, that not having a channel or streaming service on it is detrimental.
While executives feel strongly that addressable TV advertising is the future, it still only makes up about 10 percent of the overall US linear ad business, according to Axios.
Now, the unit will work off more than 100 million connected devices instead of 55 million, Axios adds, giving Nielsen even more insight into the potential of digital ads on linear networks.
Roku’s business is increasingly more reliant on its digital platform, which is powered by advertising.