Podcast: Roku Like A Hurricane

Welcome to AdExchanger Talks, a podcast focused on data-driven marketing. Subscribe here.

Roku is that rare startup that can go up against tech behemoths like Google, Apple and Amazon and win. It has more share in the TV streaming player market than any of those companies individually. Moreover, revenue from advertising and media represents a key part of its growth story, contributing more than $100 million in 2016 revenue.

This week on the podcast, SVP and platform GM Scott Rosenberg tells the Roku story and describes in detail the ad model that has helped propel the company to a post-IPO valuation of more than $4 billion.

Early on, he says, “We realized that the fastest-growing segment of channels on our platform [is] ad-supported channels.” These were either free or dual-revenue stream channels that sold 15- and 30-second spots. To capitalize on that consumer trend, “we chose to start integrating ad tech directly into our advertising system and moreover start negotiating for a share of advertising inventory in those channels.”

Just like an MVPD in the linear TV space, Roku asks programmers to allot a certain percentage of inventory per hour as part of their carriage deals on its platform. It worked: Roku’s platform business (including content and ads) now supplies 90% of the company’s profits, and advertising accounts for two-thirds of the platform business.

Also in this episode: The value of Roku’s data, the future of OTT ads and the outlook for TV ad tech as a whole.

Must Read

antitrust

Closing Arguments Are Done In The US v. Google Ad Tech Case

The publisher-focused DOJ v. Google ad tech antitrust trial is finished. A judge will now decide the fate of Google’s sell-side ad tech business.

Programmatic

Wall Street Wants To Know What The Programmatic Drama Is About

Competitive tensions and ad tech drama have flared all year. And this drama has rippled out into the investor circle, as evident from a slew of recent ad tech company earnings reports.

Platforms

Omnicom Allegedly Pivoted A Chunk Of Its Q3 Spend From The Trade Desk To Amazon

Two sources at ad tech platforms that observe programmatic bidding patterns said they’ve seen Omnicom agencies shifting spend from The Trade Desk to Amazon DSP in Q3. The Trade Desk denies any such shift.

influencer creator shouting in megaphone

Platforms

Agentio Announces $40M In Series B Funding To Connect Brands With Relevant Creators

With its latest funding, Agentio plans to expand its team and to establish creator marketing as part of every advertiser’s media plan.

Google Rolls Out Chatbot Agents For Marketers

Google on Wednesday announced the full availability of its new agentic AI tools, called Ads Advisor and Analytics Advisor.

Commerce

Amazon Ads Is All In On Simplicity

“We just constantly hear how complex it is right now,” Kelly MacLean, Amazon Ads VP of engineering, science and product, tells AdExchanger. “So that’s really where we we’ve anchored a lot on hearing their feedback, [and] figuring out how we can drive even more simplicity.”

Must Read

Popular