SAN JOSE, Calif. and NEW YORK, NY — Roku and Nielsen today announced a strategic alliance between the two companies that will help shape the future of media measurement and TV advertising in a streaming-first market. Roku has entered into an agreement to acquire Nielsen's Advanced Video Advertising (AVA) business, which includes Nielsen's video automatic content recognition (ACR) and dynamic ad insertion (DAI) technologies.
The acquisition will accelerate Roku's launch of an end-to-end DAI solution with TV programmers. In addition, Nielsen and Roku will enter into a strategic partnership to integrate complementary Nielsen ad and content measurement products into the Roku platform and further advance Nielsen ONE, the company's cross-media measurement solution.
This announcement builds on years of close collaboration between Roku and Nielsen. The two companies will enter into a long-term commercial agreement to leverage Total Ad Ratings (TAR) on the Roku platform. Specifically, Roku's media sales and ad-buying platform, OneView, will natively integrate Nielsen “always on” Digital Ad Ratings (DAR) for advertisers. Roku will also enable publishers to implement Nielsen Digital Content Ratings (DCR).
The collaboration with Roku will substantially expand the footprint of smart TVs and other devices, nearing 100 million in total, in which Nielsen can enable media sellers and buyers to measure and better monetize addressable advertising.
The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions. Upon closing, Roku looks forward to welcoming Nielsen AVA employees and taking ownership of an extensive portfolio of foundational ACR and DAI patents. Roku TV models, the No. 1 selling TV OS in the U.S. in 2020, already include ACR today, and are expected to include DAI soon. Additionally, Roku expects to expand DAI to other TV OEMs over time.