Roku adds media mix modeling to its ad measurement portfolio

Roku is integrating media mix modeling (MMM) capabilities to its Measurement Partner Program, providing advertisers an expanded data set for measuring campaign outcomes. Nielsen, Mediahub and IRI are among several partners supporting the launch.

Media mix modeling, also known as marketing mix modeling, is an analysis technique that, simply put, breaks down aggregated data to evaluate the effectiveness of marketing campaigns. As MMM is a method traditionally used for linear TV, Roku wants to expand that data set to better fit the streaming video landscape. The company claims it has the scale, data and ad tech to simplify MMM.

Participating advertisers will have access to Roku’s granular platform data to enhance their representative models. They can also factor in external influences with MMM, like seasonality, promotions or shelf organization, to allocate marketing spend on sales.

“We noticed a representation gap for TV streaming in older mix models,” Asaf Davidov, head of ad measurement and research at Roku, told The Drum. "Inadequate representation of TV streaming has limited the power of mix models to determine the true impact of TV streaming investment for advertisers. We set out to solve it on behalf of the industry.”

The data set will be limited to ads sold by Roku, including inventory bought through OneView, Roku’s cross-screen streaming ad buying platform, according to Digiday. Advertisers can leverage Roku's data to tie ad exposure data to outcome data on a user or household level.

“Streaming TV has become a critical medium to connect our brands to their most valuable consumers,” said Michael Piner, EVP of advanced media at Mediahub, in a statement. “The addition of MMM in Roku’s Measurement Partner Program will allow us to more effectively measure the impact of streaming TV in media mixes through a zoom-out lens to ensure we’re delivering the optimal TV ad experience.”

Roku first unveiled its Measurement Partner Program in 2018. The program provides third-party insights for both OTT and linear TV views, measuring ad campaign points across the marketing funnel.

Adding MMM features to its measurement inventory gives Roku a heightened advantage in the ad tech field. Roku this month rolled out the beta version of its dynamic linear ads (DLA) product as well as a data “clean room,” where advertisers can upload encrypted first-party data for secure ad planning and measurement.