Roku acquired Nielsen's Ad business recently, specifically the Advanced Video Advertising unit. Roku would like to hyper-focus its ads to optimize ad inventory and allow for better ROI tracking. While Roku is a well-known streaming service, it provides access to other streaming services through its platform, giving them a unique position to take a cut of ad revenue from its competitors.
This acquisition shows just how large the addressable TV market is and may draw large players in the space to begin making acquisitions of their own. It is possible that behemoths like Amazon and Apple, which are far behind Roku, could catch up by buying up other competitors to take market share. Roku was able to increase its user base by 40% from 2019 to 2020, which is an incredible feat in just 12 months.
As addressable TV advertising increases, other large networks will likely enter the race as well and discover ways to lure in users. Other large tv stations are currently building ways to lure customers through digital gambling platforms and sports betting. It will be interesting to see how the digital advertising pie is split as the market consolidates.
Source: https://www.theverge.com/2021/3/1/22308141/roku-nielsen-video-advertising-business-acquisition-linear-streaming-tv
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