Roku Enhances Benefits for Advertisers with Adoption of Unified ID 2.0

Rhea-AI Summary

Roku (NASDAQ: ROKU), the leading TV streaming platform in the U.S., has announced its adoption of Unified ID 2.0 (UID2) across its premium streaming inventory. This integration will enhance advertising targeting and performance for Roku Media. UID2, developed by The Trade Desk, is a pioneering identity solution for the open internet.

Key benefits for advertisers include:

• Improved audience reach through interoperable identity
• Seamless campaign activation and measurement
• Better campaign performance and ROI
• More accurate targeting and measurement capabilities

With 83.6 million Streaming Households, Roku's adoption of UID2 allows for more personalized ad experiences across platforms, potentially increasing demand and revenue potential.

Positive

• Adoption of Unified ID 2.0 (UID2) across premium streaming inventory
• Improved advertising targeting and performance capabilities
• Access to 83.6 million Streaming Households for advertisers
• Potential for increased demand and revenue through enhanced personalization

Negative

• None.

Insights

Digital Advertising Specialist

Roku's adoption of Unified ID 2.0 (UID2) marks a significant advancement in the digital advertising landscape, particularly for Connected TV (CTV) advertising. This integration has several key implications:

• Enhanced Targeting Precision: UID2 allows for more accurate audience targeting across Roku's vast user base of 83.6 million Streaming Households. This precision is important in an era where personalized advertising is becoming increasingly important.
• Improved Interoperability: By integrating UID2, Roku is fostering greater interoperability within the programmatic ecosystem. This means advertisers can more seamlessly activate and measure campaigns across different platforms and devices.
• Potential for Higher ROI: The improved targeting and measurement capabilities offered by UID2 are likely to result in better conversion rates and overall campaign performance. This could lead to a higher return on ad spend (ROAS) for advertisers, making Roku's platform more attractive.
• Privacy-Centric Approach: As the industry moves away from third-party cookies, UID2 represents a more privacy-friendly alternative for identity resolution. This aligns with growing consumer privacy concerns and regulatory pressures.

While this move strengthens Roku's position in the competitive CTV advertising market, it's important to note that the success of UID2 will depend on widespread adoption across the industry. Advertisers should monitor how this integration impacts campaign performance and cost-effectiveness in the coming months.

Market Research Analyst

Roku's integration of Unified ID 2.0 (UID2) is a strategic move that could significantly impact its market position and revenue streams. Here's why this development is noteworthy:

• Market Leadership Reinforcement: As the #1 TV streaming platform in the U.S., Roku is leveraging its market position to set industry standards. By adopting UID2, Roku is positioning itself as a forward-thinking leader in addressable advertising.
• Revenue Growth Potential: Enhanced targeting capabilities and improved ad performance could lead to increased advertiser demand for Roku's inventory. This may translate to higher ad rates and, consequently, revenue growth for Roku.
• Competitive Advantage: The integration of UID2 could give Roku an edge over competitors who haven't yet adopted similar advanced identity solutions. This may attract more advertisers to Roku's platform, potentially increasing its market share.
• Ecosystem Expansion: By improving interoperability with the broader programmatic ecosystem, Roku is expanding its reach and relevance. This could lead to new partnerships and business opportunities in the digital advertising space.

However, it's important to monitor how this adoption affects Roku's user experience and whether it raises any privacy concerns among consumers. The success of this initiative will likely depend on Roku's ability to balance advertiser demands with user preferences and privacy expectations.

New integration will improve advertising targeting and performance across Roku Media

SAN JOSE, Calif.--(BUSINESS WIRE)-- Today, Roku (NASDAQ: ROKU), the #1 TV streaming platform in the U.S.*, announced its adoption of Unified ID 2.0 (UID2), a leading identity solution, across its premium streaming inventory. Roku advertisers can now implement more precise targeting and a secure means to facilitate data collaboration at Roku Media’s unmatched scale, powered by automation through Roku Exchange. Developed by The Trade Desk, UID2 is an identity solution that is helping pioneer the new identity fabric of the open internet.

Roku, the #1 TV streaming platform in the U.S., announced its adoption of Unified ID 2.0 (UID2), a leading identity solution from The Trade Desk, across its premium streaming inventory. (Graphic: Business Wire)

Roku has been at the forefront of addressability, with robust first-party data from the platform’s 83.6 million Streaming Households. Now with UID2, Roku is empowering advertisers to deliver more personalized ad experiences across Roku’s inventory and devices at scale. UID2 integration enables Roku Media to become interoperable across the programmatic ecosystem.

By enabling UID2 across its premium inventory, Roku offers:

• Audience reach: With UID2, advertisers can find their audiences on Roku at scale through interoperable identity.
• Seamless activation: Through the integration of Roku identity data and UID2, advertisers can activate and measure campaigns instantly.
• Better campaign performance and return on investment (ROI): Advertisers can earn a higher return on ad spend (ROAS) through improved audience reach. More accurate targeting and measurement capabilities ensure advertisers see better conversion rates and overall campaign success.

“The adoption of Unified ID 2.0 represents another step forward in Roku’s strategic programmatic path, rooted in our goal to revolutionize the ad ecosystem,” said Jay Askinasi, SVP, Head of Global Media Revenue and Growth, Roku. “By further partnering with The Trade Desk, we aim to enhance targeting capabilities, improve ad performance and efficacy to drive growth, and maintain our leadership position in the TV streaming space.”

“As consumers continue to spend more and more time in streaming, advertisers are looking for ways to reach these viewers at scale,” said Will Doherty, VP of Inventory Development, The Trade Desk. “By adopting Unified ID 2.0, Roku is showing the value the premium internet has to offer advertisers, while prioritizing privacy for their highly valued audiences.”

Roku’s adoption of UID2 allows advertisers to deliver more personalized ad experiences across platforms. This enhanced targeting precision not only increases demand and revenue potential but also fosters a more cohesive and efficient advertising ecosystem.

To learn more, please visit our website.

QUOTE FOR ATTRIBUTION:

James Tarone, Director of Programmatic and Video, Pfizer: “We are excited about this announcement as it aligns with our evolving approach to Video. Managing identity, reach, and scale across CTV in a privacy compliant manner will have a material impact on our business.”

*By hours streamed (Hypothesis Group: Dec 2023)

About Roku

Roku pioneered streaming on TV. We connect users to the content they love, enable content publishers to build and monetize large audiences, and provide advertisers with unique capabilities to engage consumers. Roku TV™ models, Roku streaming players, and TV-related audio devices are available in various countries around the world through direct retail sales and/or licensing arrangements with TV OEM brands. Roku-branded TVs and Roku Smart Home products are sold exclusively in the United States. Roku also operates The Roku Channel, the home of free and premium entertainment with exclusive access to Roku Originals. The Roku Channel is available in the United States, Canada, Mexico, and the United Kingdom. Roku is headquartered in San Jose, Calif., U.S.A.

Marks included in this press release are trademarks or registered trademarks of Roku, Inc. in the U.S. and in other countries. Tradenames, trademarks, and services marks of other companies appearing in this press release are the property of their respective holders.

About The Trade Desk

The Trade Desk™ is a technology company that empowers buyers of advertising. Through its self-service, cloud-based platform, ad buyers can create, manage, and optimize digital advertising campaigns across ad formats and devices. Integrations with major data, inventory, and publisher partners ensure maximum reach and decisioning capabilities, and enterprise APIs enable custom development on top of the platform. Headquartered in Ventura, CA, The Trade Desk has offices across North America, Europe, and Asia Pacific. To learn more, visit thetradedesk.com or follow us on Facebook, Twitter, LinkedIn and YouTube.

This press release contains “forward-looking” statements that are based on our beliefs and assumptions and on information currently available to us on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include but are not limited to trends related to TV streaming; Roku’s partnership with The Trade Desk, integration of Unified ID 2.0, and the related benefits and opportunities; our ability to improve the advertising ecosystem; our ability to compete in the TV streaming industry; and the features, capabilities, benefits, growth and reach of the Roku platform. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Roku, Inc. files with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2023, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2024. Copies of reports filed with the SEC are posted on Roku’s website and are available from Roku without charge.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240801677317/en/

Roku

Sarah Saul

AdsPR@roku.com

The Trade Desk

Melinda Zurich

melinda.zurich@thetradedesk.com

Source: Roku

FAQ

What is Unified ID 2.0 (UID2) and how does it benefit Roku advertisers?

Unified ID 2.0 (UID2) is a leading identity solution developed by The Trade Desk. It benefits Roku advertisers by enabling more precise targeting, improved audience reach, seamless campaign activation and measurement, and better overall campaign performance and ROI across Roku's premium streaming inventory.

How many Streaming Households does Roku have access to for advertisers?

Roku has access to 83.6 million Streaming Households, providing a substantial audience base for advertisers to reach through the UID2 integration.

What specific improvements can advertisers expect from Roku's adoption of UID2?

Advertisers can expect improved audience reach through interoperable identity, seamless campaign activation and measurement, better campaign performance and ROI, and more accurate targeting and measurement capabilities, potentially leading to higher conversion rates and overall campaign success.

How does Roku's adoption of UID2 impact its position in the TV streaming space?

Roku's adoption of UID2 enhances its strategic programmatic capabilities, potentially strengthening its leadership position in the TV streaming space by offering advertisers improved targeting and performance features at scale.