April 3, 2017 Last Updated 8:32 am

Hoping to lure video advertising away from broadcasters, Roku to offer audience guarantees

‘Consumers are migrating their TV viewing to OTT platforms like Roku, making them increasingly difficult to reach through traditional TV advertising’

LOS GATOS, Calif. – April 3, 2017 — Roku Inc. today announced further advancement of its video ad platform capabilities with the availability of audience guarantees for TV advertisers. Marketers can now measure campaigns on the Roku platform using detailed demographic metrics comparable to linear TV with Nielsen Digital Ad Ratings (DAR).

“Consumers are migrating their TV viewing to OTT platforms like Roku, making them increasingly difficult to reach through traditional TV advertising,” said Scott Rosenberg, senior vice president, advertising, Roku. “As TV buyers follow this migration, they need a common currency to plan their investment mix across linear and OTT. With our industry-leading advertising platform, we are uniquely positioned to enable demographic guarantees.”

With demographic guaranteed campaigns on the Roku platform, advertisers can ensure their campaign reaches a more complete TV audience, including consumers who are not watching linear TV. Recent data illustrates the pace of this change:

  • Forty percent of Roku customers have canceled or reduced their traditional pay TV service, and in some cases, watch all their TV through their Roku1
  • The latest Nielsen Total Audience Report found that Adults 18-24 watched 46% fewer hours of linear TV in Q3 2016 than in Q3 20102
  • A 2016 Nielsen report showed that TV Connected Devices made up 23% of average weekly video minutes among Adults 18-34, more than double that of PC, smartphone and tablet combined3

Nielsen and Roku established a strategic partnership in 2015 to integrate Nielsen’s DAR solution directly into the Roku Ad Framework, Roku’s integrated universal ad SDK.

Roku is already working with advertisers to bring this additional capability to TV buying.

“Roku is pushing the industry forward to adopt verification standards for media buying,” said Britney Greenhouse, director of video and digital investment, Horizon Media. “We have been working together with Roku to pilot the audience guaranteed product. We’ve seen positive match rates with Nielsen which are a good sign.”

“We are excited to partner with Roku on this first-to-market opportunity,” said Erica Sperry, vice president, National Video Investments, Trilia, an IPG agency participating in the MAGNA-Roku partnership. “As viewing migrates increasingly to OTT platforms, it’s critical for us to help our clients stay in the forefront of this shift in consumer behavior. Being able to guarantee on a specific demographic target through DAR gives us an added layer of insight and transparency in creating holistic video recommendations for Chili’s. We know this platform will play an increasingly prominent role in the media consumption habits of today’s consumers.”

Ad-supported viewing is the fastest-growing segment on the Roku platform, accounting for half of the top 250 most-watched channels. Investment in OTT advertising has increased to match this shift in video viewing. In January 2017, MAGNA and Roku forged an industry-first strategic partnership to deliver targeted advertising to OTT audiences, enabling MAGNA clients to reach viewers who have shifted their TV consumption to OTT.

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