Home AdExchanger Talks Podcast: Roku Like A Hurricane
PODCAST: AdExchanger Talks

Podcast: Roku Like A Hurricane

By

SHARE:

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

AI

Criteo Lays Out Its AI Ambitions And How It Might Make Money From LLMs

Criteo recently debuted new AI tech and pilot programs to a group of reporters – including a backend shopper data partnership with an unnamed LLM.

Agencies

Google Ad Buyers Are (Still) Being Duped By Sophisticated Account Takeover Scams

Agency buyers are facing a new wave of Google account hijackings that steal funds and lock out admins for weeks or even months.

Platforms

The Trade Desk Loses Jud Spencer, Its Longtime Engineering Lead

Spencer has exited The Trade Desk after 12 years, marking another major leadership change amid friction with ad tech trade groups and intensifying competition across the DSP landscape.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Commerce

How America’s Biggest Retailers Are Rethinking Their Businesses And Their Stores

America’s biggest department stores are changing, and changing fast.

Technology

How AudienceMix Is Mixing Up The Data Sales Business

AudienceMix, a new curation startup, aims to make it more cost effective to mix and match different audience segments using only the data brands need to execute their campaigns.

Digital Out-Of-Home

Broadsign Acquires Place Exchange As The DOOH Category Hits Its Stride

On Tuesday, digital out-of-home (DOOH) ad tech startup Place Exchange was acquired by Broadsign, another out-of-home SSP.

Popular

  1. programmatic transparency

    New Report Finds That Quality Pays Off In Programmatic – And It’s Not More Expensive

    Marketers know that quality matters – and here’s yet more proof. But breaking old habits in digital media is easier said than done.

  2. AI

    Criteo Lays Out Its AI Ambitions And How It Might Make Money From LLMs

    Criteo recently debuted new AI tech and pilot programs to a group of reporters – including a backend shopper data partnership with an unnamed LLM.

  3. Platforms

    The Trade Desk Loses Jud Spencer, Its Longtime Engineering Lead

    Spencer has exited The Trade Desk after 12 years, marking another major leadership change amid friction with ad tech trade groups and intensifying competition across the DSP landscape.

  4. The Arena Group's Stephanie Mazzamaro (left) chats with ad tech consultant Addy Atienza at AdMonsters' Sell Side Summit Austin.
    Publishers

    For Publishers, AI Gives Monetizable Data Insight But Takes Away Traffic

    Traffic-starved publishers are hopeful that their long-undervalued audience data will fuel advertising’s automated future – if only they can finally wrest control of the industry narrative away from ad tech middlemen.

  5. David Nyurenberg, SVP of Digital, InterMedia Advertising
    OPINION: Data-Driven Thinking

    CTV Is Less Transparent Than YouTube. That Should Alarm Everyone

    CTV spending is flattening, performance is plateauing and buyers are hesitant to push budgets further. The reason is not complicated. When buyers cannot see what they are buying, they cannot commit their spend with conviction.