ROKU Inc. (ROKU) has announced a deal to buy Nielsen’s TV advertising business. Roku will become the most attractive platform for planning ad budgets since it will enable advertisers to target their ads across streaming services and even on traditional TV broadcasting.
A deal was announced in the first week of March between Roku and Nielsen Holdings, in which Roku will receive Nielsen’s Advanced Video Advertising business through Automatic Content Recognition (ACR) and Dynamic Ad Insertion (DAI). The Roku platform will manage targeted video ads through its OTT services instead of advertising them on broadcast TV channels.
The two companies also announced a multi-year deal to integrate Nielsen’s rating systems into the Roku Inc. (ROKU) platform. Roku’s streaming service has now improved the monetization of marketing campaigns. This partnership will help Roku create easy integrations for ad sales teams and improve revenue opportunities.
According to Roku Inc. (ROKU), streamed targeted ads are worth about $70 billion. Based on Magna Global data, the company claims that while streaming television constitutes nearly 29% of all TV viewing time, the current budgets spend on this channel are 3%. The video streaming service thus gives Roku a great deal of room to grow.
The stock has had excellent performance over the last year. The stock’s value has grown 112.99% in the previous six months, while it surged 240.18% in the past 12 months. In the last month, Roku Inc. (ROKU) has fallen by -11.22%, and their performance for the quarter is 25.86%. Performance for the last seven days is -10.70%.