Commentary

Roku/Nielsen: CTV Battleground Moves To Linear TV

  • by , Featured Contributor, March 11, 2021

While streaming-video viewing is hot, the vast majority of TV viewing probably won’t shift to streaming for another seven to 10 years since a full one-third of the U.S. still lacks fixed broadband at home, according to Pew Research. After last week's news that video streamer Roku is buying Nielsen’s advanced television technology and data business, a key portion of which is designed to deliver dynamic advertising into linear TV programming, it’s clear Roku isn’t planning to sit back and wait for linear TV ad budgets to come to it.

Instead, Roku is now taking its CTV tech and chops directly into the linear TV ad world.

I expect this deal to have a far greater impact on the future of both the CTV and linear ad market than any other deal that we have seen in this space in years. Here are two big reasons why:

Roku establishes itself as the next-generation video distributor. TV programmers and networks have tried for years to get away from the choke-holds that conventional television distributors (cable and satellite companies) have had on their businesses. In one fell swoop, Roku has massively upped its leverage and control over content owners, given its existing position controlling the apps on its devices and on the operating systems of its TV device partners.

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Now, Roku won’t just be able to take a cut of the streamed ads (delivered on apps powered by its tech), but it’s also going into the core of linear TV and will eventually be selling and serving ads in the linear channels as well.

As Roku’s platform general manager Scott Rosenberg noted, "We view the deal with Nielsen as another step in expanding the breadth and variety of TV advertising we can help positively influence.”

Roku solidifies the independent measurement for its offering. This deal ensures that Nielsen has a long-term supply of robust, real-time viewing data across a massive number of streaming viewers, which is great for both Roku and Nielsen.

Nielsen’s long-term position as the primary (only) true cross-channel measurement provider is now locked in and unassailable for years to come. Roku is guaranteed that the measurements trusted by the TV advertisers whose budgets it covets find similar trusted measurement in streaming as well, with a large portion of that based on its own data.

Is Roku now poised to be the Comcast, Charter and DirecTV of the future? I say yes, though almost certainly a more benevolent and modern version. What do you think?

4 comments about "Roku/Nielsen: CTV Battleground Moves To Linear TV".
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  1. Brad Bullock from Effectv, March 11, 2021 at 4:16 p.m.

    Good question. I've always preferred the simplicity of linear TV over multi device connected TV.

  2. Tracey Scheppach from Matter More Media, March 11, 2021 at 7:55 p.m.

    I am forever hopeful but there is a fairly large mind shift needed to take CTV success to linear and package deals to capture more traditional TV dollars. I hope we see more transparent premium addressable inventory added to the market that is not self graded. 

    I would also add this deal is a big win for Nielsen One strategy. Content and ads on all Roku devices not just CTV currency. Expanding their coverage significantly.

  3. Dave Morgan from Simulmedia replied, March 12, 2021 at 8:16 a.m.

    Good piont Brad. Hopefully, this will drive us toward a future that marries the precision and automation of CTV with linear TV'ssimple, big reach.

  4. Dave Morgan from Simulmedia replied, March 12, 2021 at 8:19 a.m.

    I totally agree Tracey. This is a bbig boon for Nielsen One and means that no one else is likely to catch them in the viodeo ad measurement game in the US anytime soon. It also means that Nielsen One is certain to fully capture - and represent well - audiences and ads sold by Roku. If I were Disney, Amazon, YouTube and others, I'd now make sure that I'm sharing comparable data with Nielsen too.

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