Roku on Oct. 22 announced that it has entered into an agreement to purchase Boston-based Dataxu, an online platform enabling marketers to plan and buy video ad campaigns, for $150 million in cash and stock.
The acquisition has been approved by each company’s board of directors and is anticipated to close in the fourth quarter of 2019, subject to customary closing conditions, including regulatory approvals.
Advertisers today spend more than $70 billion dollars on traditional TV. According to Magna Global, OTT accounts for 29% of TV viewing but so far has only captured 3% of TV ad budgets. As viewers continue to migrate to streaming, automated media buying solutions are expected to unlock more advertising investment into OTT.
Roku streams more ad-supported hours than any other OTT platform, according to a June 2019 comScore analysis. With more than 30.5 million active accounts, Roku ranks among Ad Age‘s Top 200 marketers.
The acquisition will enable Roku to provide marketers a single, data-driven software solution to plan, buy, and optimize their ad spend across TV and OTT providers.
“TV advertising is shifting toward OTT and a data-driven model focused on business outcomes for brands,” Anthony Wood, CEO at Roku, said in a statement. “The acquisition … will accelerate our ad platform, while also helping our content partners monetize their inventory even more effectively.”
In Forrester’s New Wave: Cross-Channel Video Advertising Platforms 2019 report, dataxu recently received highest scores for its current offering in cross-channel video advertising.