Who still watches TV?
Sure, we watch a lot of things on TV – but more and more – people are “cutting the chord” and getting rid of their cable and watching more things through streaming services.
But there are a few of us that refuse to give up our cable…
We flip through hundreds of channels nightly – looking for something to watch – and end up either watching something we’ve seen a hundred times before, or settle on sports or ESPN.
But ahhhh, the heyday of TV – the Golden Years – the time when families huddled together to watch their favorite shows…
That was a thing of beauty.
Back then – it was all about the ratings – Nielson was the biggest name around and if you were big with its ratings, you had a hit and were making a boatload of cash…
But does it even matter anymore?
Well, if we’re to take a cue from this MULTI-BILLION-dollar deal that just happened….
That answer is a resounding “yes”!
Keep reading to get the whole scoop…
It’s funny, with the rise in streaming services like Netflix (NFLX), Hulu, Disney+ (DIS) and others – the ratings a show gets is a LOT lower than it used to be.
Why?
Because people don’t always watch things in real-time anymore…
They’ll either record it on their DVR or they’ll binge it when the whole season comes out – gone are the days when tens of millions of people watch a show at the same time – but that doesn’t mean ratings don’t matter.
Ratings STILL matter – and a deal just happened to prove that point.
For the better part of 6 decades, Nielsen (NLSN) ratings were (and in some ways, still ARE) the gold standard in traditional TV viewership and ratings…
However, while the way we watch our television has changed – Nielsen still knows its target audience and what ads to show them in order to keep raking in those advertising dollars.
Well, because there is still value in Nielsen ratings – one of the rulers of the streaming TV market, Roku (ROKU) – just made a deal with the ratings king – and it could net both companies BILLIONS.
This all started when one of Wall Street’s top stock analysts from Macquarie brought Nielsen up during an interview and explained how the ratings company is developing a CTV technology (Connected TV – or streaming services to you and me) in order to track audiences in order to develop new advertising tools.
This was all during an overall conversation on how ad spending was shifting away from traditional TV and more toward CTV.
If streaming companies want to rake in lucrative ad revenue – they’re going to need to prove to advertisers that they’ll get the same, or in many cases, MORE bang for their advertising buck.
But the CTV world is a complex landscape…
There’s a lot of ins and outs – more automation, more technology running the processes, less human eyes in place to ensure things go smoothly – so there actually a lot of room for different players to do a lot of different things.
So, Roku decided to be the first company to utilize Nielsen’s new CTV ad tools – and purchased Nielsen’s Advanced Video Advertising unit for an undisclosed amount.
You may be wondering why a technology-based company like Roku would partner with a relative dinosaur like Nielsen when there are so many different new companies to go with?
That’s because Nielsen is much more than JUST a ratings company.
When it comes to ad revenue – and more importantly, the targeting of ads to specific audiences to ensure they buy – there is nobody with more knowledge and experience in the arena than Nielsen…
And the company’s Advanced Video Ad unit specializes in something called dynamic ad insertion (DAI that will allow Roku to scan and replace ads in streaming feeds with specifically targeted ads to each individual household).
This is a service that cable and broadcast TV operators would die for since it’d allow them to jack up the price of ads across the board and significantly increase revenue – but they can’t – they simply don’t have the technology to do so.
This is what Roku and connected streaming TVs bring to the table.
Even people that HATE commercials – won’t see commercials they hate on Roku…
Because the fact is – they’ll only get advertisements for the kind of things they’re interested in!
Also, in addition to purchasing the DAI tech and Nielsen’s Advanced Video Ad unit, Roku also entered into a multiyear deal for inclusion in Nielsen One, a cross-media measuring solution.
Basically, Roku just acquired the tools to specifically target streaming viewers with personalized ad content. This personalization will allow Roku to attract more CTV advertisers, charge more for targeted ads, and bank even more revenue.
Roku will more or less become the Google (GOOG) of TV – but instead of targeting your internet pages with targeted ads – it’ll be your favorite shows.
How cool is that?
Of course, the ONLY thing cooler than that is making money in the markets – quickly and easily – which is why I’m asking you to become a subscriber of GorillaTrades today.
Our goal is simple: Give our subscribers the best chance at making the most money in the shortest amount of time using only data and numbers as our guide.
We’d love to show you how it works – so please – consider subscribing today!
Regardless of whether you do or don’t, you may want to take a look at Roku or Nielsen and see if it’s something you’d like to add to your list of winners…
It may be the smartest play you make!
“The 21st century has more potential than perhaps any other in our brief evolutionary history. We stand on the cusp of computing, genetic and energy generation breakthroughs that were only recently in the realm of science-fiction. A golden age of humanity is tantalizingly within our grasp.” – Clive Lewis
