Roku Launches a New Marketplace for TV Ad Inventory

Roku is launching an ad marketplace where networks can make ad inventory available that would run during programs watched on Roku’s platform.

Why this matters: Video ad impressions from OTT are up 178% YoY and Roku’s platform is connecting more TV’s than anyone else.

What gives Roku an advantage? Roku has 21M HH with login data and their standardized platform could offer the closest thing to the scale of linear television.

The big question: Will networks give more than the 2m of ad inventory that distributors typically are able to resell?

Quote from Scott Rosenberg — GM of Platform @ Roku:“We really felt that OTT, much more so than legacy TV platforms, was the place to go to reinvent how TV advertising works, and really deliver on this promise of bringing the sight, sound, motion and branding power of TV, combined with the benefits of digital, targeting and engagement.”

Flashback #1: Roku’s Platform Business Is Just Getting Started

Total video subscribers:
1) AT&T — 25.4M
2) Comcast — 21.2M
3) Roku — 20.8M

Total ad revenue in 2017:
1) Comcast — $2.3B
2) Roku — $264M

Ad revenue per subscriber in 2017:
1) Comcast — $106
2) Roku — $15

Flashback #2: Inside Roku’s battle to control the future of TV advertising — and why it better watch out for Amazon

Share of OTT ads delivered in April:
1) Roku — 83%
2) Other — 11%
3) Amazon Fire — 4%
4) Sony Playstation — 2%

More #1: Roku launching targeted advertising marketplace

More #2: Why digital video has become the new performance hero

More #3: TV planning and buying needs a reset: Spend 5% of TV budgets on audience-based delivery

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