by Laurie Sullivan @lauriesullivan, April 3, 2017

Roku on Monday said it would guarantee demographic targeting for TV advertisers, advancing its video ad platform capabilities.

Marketers can now measure campaigns on the Roku platform using detailed demographic metrics comparable to linear TV with Nielsen Digital Ad Ratings (DAR).

The offering expands on a 2-year-old relationship with Nielsen and strengthens two core strategies for Roku. The initial step to leverage its registration data supports a strategy to build the “pipes and plumbing.” It is also building an ad-sales team to support guaranteed targeting, said Scott Rosenberg, SVP of advertising at Roku.

Roku uses aggregate and registration data to take an impression on the audience network and “target with not perfect, but high accuracy.” When the impressions get recorded by Nielsen it’s likely to fall into a specific segment, he said. “We’re not always going to get it correct, but we can come darn close,” he said.

There is often more than one person sitting in front of the TV, which creates a mixed demographics.

Rosenberg said the company has begun to work with advertisers to measure the impact on sales, but is not guaranteeing results. “That’s a whole other level of commitment.” The company is analyzing whether exposure to a CPG campaign means a consumer more likely to visit a retail store and make a purchase.

Live streaming free broadcast channels have become more popular on Roku. In fact, Rosenberg says searches for the word “free” on the company’s Web site continues to grow as consumers research the device to buy.

Monday’s announcement, however, focuses on reaching traditional TV media buyers who earmark budgets based on age, gender and Nielsen demographics. Ad-supported viewing is the fastest-growing segment on the Roku platform, accounting for half of the top 250 most-watched channels.

Recent data from Roku found that 40% of its customers have canceled or reduced their traditional pay TV service. In some cases these consumers watch all their TV through the platform.

The latest Nielsen Total Audience Report found adults ages 18 to 24 watched 46% fewer hours of linear TV in the third quarter of 2016, compared with the third quarter in 2012.

In January 2017, MAGNA and Roku also formed a partnership to deliver targeted advertising to OTT audiences, enabling MAGNA clients to reach viewers who have shifted their TV consumption to OTT.

MediaPost.com: Search Marketing Daily

(33)