Magna Shifts More Ad Dollars from Linear TV to OTT Devices in New Deal with Roku

As television ratings continue to decline, companies like Magna are making an effort to move advertisers’ money out of traditional TV and into over- the-top devices. The media-buying arm of Interpublic Group struck a deal with Roku to help clients reach audiences who have shifted their TV viewing to OTT devices.

According to David Cohen the president of the North American Company, Magna clients, who include Coca-Cola, BMW and MillerCoors, will now be able to more precisely target audiences on the platform using custom data segments created by Magna. This is the first time Roku will allow an agency to use custom data segments to execute a buy rather than relying on third-party data.

Magna also gains access to Roku’s data to help better understand the OTT marketplace while planning media buys. And Roku will allow Magna to tag all campaigns with Nielsen Digital Ad Ratings (DAR) to then combine viewing on TV and Roku for a more rounded picture.

“By integrating advanced ad technologies directly into our TV operating system, Roku is able to offer advertisers the most advanced ad capabilities in OTT,” said Scott Rosenberg, Vice President of Advertising at Roku. “This partnership accelerates our work with IPG Mediabrands, and opens the door to close collaboration on new ad products in 2017.”

The Roku deal is the first in a series of plans by Magna to continue to shift dollars out of traditional TV and into alternative video platforms. Magna has already committed to spending at least $250 million on Google Preferred, which offers a premium ad inventory on YouTube.

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