In 2019, 59% of all programmatic OTT/CTV video advertisements went to Roku devices.
59% of what size pie, in dollars? Can you compare that to mobile and/or web? How many ad dollars compared to, say YouTube?
Streaming OTT services through Netflix and Amazon Prime are now the predominant way to consume content, and most streaming takes place on mobile devices.
https://martechseries.com/mts-insights/guest-authors/5-billi…
Here’s Roku pitching their ad services:
https://advertising.roku.com/Advertiser-Solutions
In addition to :15 and :30 spots, we offer full-screen interactive video and overlays that invite consumers to engage with brands in new and immersive ways.
BTW, I had asked about Roku Active Users (versus boxes sold). From https://tinuiti.com/blog/ott-over-the-top-ads/roku-advertisi… As of Dec 31, 2019, there were 52 million Roku devices with 36.9 Active Users.
As for the size of the ad business for Roku, I found this from Jan 2019: https://www.emarketer.com/content/10-ways-roku-is-growing-it…
Note the “Roku Ad Revenues” chart mid way down the page. $433M in 2019 and expected $632.9M in 2020. Growing, but the % change is shrinking each year (from 117% in 2017 to 109.9% in 2018 to 66.7% in 2019 to an expected 46.2% in 2020).
What sort of Ad Revenue growth is already priced into the stock?
That article lists 10 ways Roku makes money from ads:
- Selling publishers’ inventory When people watch ad-supported publishers on Roku, the platform gets access to sell some of the publisher’s inventory in exchange for the extended audience reach it provides. Roku has found this to be a more reliable strategy than asking publishers for a cut every time an ad runs on the platform.
- Subscription kick-back. This includes subscribing to Showtime and Starz from within Roku’s own channel, in which users have just 1 bill (to Roku) to pay.
- Selling publishers audience-data.
- Display ads (as we discussed earlier)
- Channel recommendations (some editorial, some paid). This is when you hit “Streaming Channels” and it gives you a list from which to choose which ones you want to add.
- Its own Roku channel, which has ads
- Sponsored shows. Some of the content in Roku’s own channel is sponsored.
- Email marketing (I’ve opted out of this so I don’t know about it).
- Remote Buttons (those direct go-to service buttons on the remote)
- TV manufacturer deals (like TCL discussed earlier). These are “low- or no-economic deals.”