Roku Launches Ads Manager, a Self-Service Performance Solution for Growth Marketers

Rhea-AI Summary

Roku (NASDAQ: ROKU) has launched Roku Ads Manager, a self-service solution for CTV performance marketing. This platform is designed to help growth marketers succeed as TV ad spending shifts from linear to streaming. Key features include:

1. Optimization and performance driven by Roku's extensive CTV reach
2. Efficiency and competitive pricing through direct premium inventory
3. Action Ads allowing interactive video overlays
4. Shopify Checkout integration for self-service shoppable ads

The solution aims to democratize CTV advertising access and improve results for advertisers of all sizes. Roku Ads Manager complements Roku's existing advertising product portfolio, offering flexibility in purchasing premium ad supply.

Positive

• Launch of Roku Ads Manager, a self-service CTV performance marketing solution
• Integration with Shopify for shoppable campaigns, a first in CTV advertising
• Competitive pricing and spending efficiency without third-party fees
• Introduction of Action Ads for interactive video overlays
• Expansion of Roku's advertising product portfolio

Negative

• None.

Insights

Tech Expert

Roku's launch of Ads Manager marks a significant shift in the Connected TV (CTV) advertising landscape. This self-service platform addresses a critical gap in the market, catering to growth marketers and direct-to-consumer brands. The integration with Shopify for shoppable campaigns is particularly noteworthy, as it's a first-to-market feature in CTV.

The platform's ability to offer data-driven optimization and unique ad formats like native shoppable campaigns sets it apart from competitors. This move could potentially disrupt the digital advertising ecosystem, challenging established platforms like Google and Facebook by offering a new, high-engagement channel for performance marketing.

However, the success of this platform will largely depend on user adoption and the effectiveness of CTV in driving conversions compared to traditional digital channels. It's a bold move that could position Roku as a leader in the evolving CTV advertising space if executed well.

Market Research Analyst

Roku's Ads Manager launch is strategically timed to capitalize on two key market trends: the shift of TV ad spending away from linear television and the desire of digital-native marketers to diversify beyond search and social media platforms. This move positions Roku to capture a larger share of the growing CTV advertising market, estimated to reach $43.59 billion by 2026.

The platform's competitive pricing model, without third-party fees, could be particularly attractive to small and medium-sized businesses looking to enter the CTV space. The Shopify integration opens up a new revenue stream for e-commerce businesses, potentially driving significant growth in this sector.

However, the effectiveness of CTV in driving direct response actions compared to established digital channels remains to be seen. Roku will need to provide compelling performance data to convince marketers to shift budgets to this new platform.

Financial Analyst

The launch of Ads Manager could significantly impact Roku's financial performance. In Q2 2023, Roku's platform revenue, which includes advertising, grew by 11% year-over-year to $744 million. This new self-service platform has the potential to accelerate this growth by attracting a wider range of advertisers, particularly small and medium-sized businesses.

The direct-to-consumer integration with Shopify could lead to higher-value advertising contracts and improved margins. However, investors should watch for any potential cannibalization of Roku's existing ad sales channels.

While this move diversifies Roku's revenue streams and could enhance its competitive position, the company still faces challenges in achieving profitability. The success of Ads Manager will be important in Roku's journey towards sustainable profitability and could significantly influence investor sentiment in the coming quarters.

The solution includes a CTV first-to-market Shopify integration, allowing for self-service shoppable campaigns

SAN JOSE, Calif.--(BUSINESS WIRE)-- Today, Roku (NASDAQ: ROKU), the #1 TV streaming platform in the U.S.*, announced the launch of Roku Ads Manager, a direct self-service solution designed for CTV performance. With TV ad spending shifting further away from linear and digital-native marketers eager to diversify beyond search and social, Roku Ads Manager is custom-built to help growth marketers succeed.

Roku Ads Manager is a direct self-service solution designed for CTV performance, custom-built to help growth marketers succeed. (Graphic: Business Wire)

“In order to meet growth marketers’ needs across all direct-to-consumer brands, we built a seamless solution to buying CTV video ads for brands of any size,” said Louqman Parampath, VP of Product Management, Roku. “Roku Ads Manager is uniquely positioned to offer data, optimization, and ad formats that no other CTV self-serve solution has, like native shoppable campaigns with Shopify, all while providing a familiar buying experience similar to search and social.”

Roku Ads Manager addresses the evolving needs of today’s performance marketers with:

• Optimization and performance: Roku’s immense reach in CTV powers the insights and technology to drive awareness and bottom-of-funnel engagement.
• Efficiency and competitive pricing: Roku’s direct premium inventory enables competitive CTV pricing and spending efficiency without third-party fees.
• Action Ads: Marketers can now generate interactive video overlays on their own, allowing consumers to send themselves a text message while watching their video ad.
• Shopify Checkout: For the first time in CTV advertising, Shopify merchants can now launch self-service shoppable ads that allow consumers to checkout on-screen using their Roku remote.

“We’re expanding our partnership with Roku to leverage Shopify’s Checkout and unlock a new self-serve sales channel for Shopify merchants to reach more customers with shoppable ads,” said Mani Fazeli, VP of Product, Shopify. “This type of highly engaging and embedded commerce on connected TVs is precisely the type of innovation consumers crave.”

Roku Ads Manager is the latest addition to Roku’s robust portfolio of products for advertisers, offering maximum choice in how they purchase the company’s premium advertising supply. From major brands to small businesses, Roku is focused on democratizing access to CTV and making it easier to drive better results.

To learn more about Roku Ads Manager, please visit our website.

QUOTES FOR ATTRIBUTION:

Louis Chong, Paid Acquisition Manager, Acorns: “CTV is a rapidly expanding category, and Roku is uniquely placed to provide new incremental ad inventory to reach new audiences. A consistent CTV presence tends to generate stronger CVR over time. With Roku’s ability to connect with relevant demographics, it just makes sense to have Roku part of the CTV mix.”

Hobson Brown, Co-Founder, Criquet Shirts: “Roku Ads Manager made it incredibly easy for Criquet Shirts to enter the CTV space. The platform’s intuitive setup and unique interactive ad formats allowed us to quickly create and launch campaigns, all while effectively reaching key geos and audiences on the big screen.”

*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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240918031574/en/

Sarah Saul

AdsPR@roku.com

Source: Roku

FAQ

What is Roku Ads Manager and when was it launched?

Roku Ads Manager is a self-service CTV performance marketing solution launched by Roku (ROKU) on September 18, 2024. It's designed to help growth marketers succeed in the shifting TV ad landscape.

What are the key features of Roku Ads Manager?

Key features of Roku Ads Manager include optimization and performance driven by Roku's CTV reach, efficiency and competitive pricing through direct premium inventory, Action Ads for interactive video overlays, and Shopify Checkout integration for shoppable ads.

How does Roku Ads Manager integrate with Shopify?

Roku Ads Manager offers a first-to-market Shopify integration in CTV advertising, allowing Shopify merchants to launch self-service shoppable ads that enable consumers to checkout on-screen using their Roku remote.

What are Action Ads in Roku Ads Manager?

Action Ads in Roku Ads Manager are interactive video overlays that marketers can generate on their own, allowing consumers to send themselves a text message while watching the video ad.