In the first half of 2021, Roku Inc. (ROKU), a supplier of TV streaming software and devices, grew sales by 80% year over year. Advertisers, who are increasingly seeing the benefits of using a TV streaming platform to communicate with potential consumers, are one of the most visible drivers of development.
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Roku reported accelerated growth in average revenue per user in the third quarter of the fiscal year 2021, from 20% a year earlier to 46% in the most recent reporting period. Advertisers are beginning to shift to streaming services, as seen by these figures.
Roku has taken many significant measures in recent years to strengthen its position in the ad industry. Dataxu, a tool that helps marketers to organise ad campaigns, was bought by the company two years ago. Roku will incorporate Dataxu assets into the OneView ad platform, which offers advertisers with analytics and ad management capabilities, in Q2 2020. It is worth noting that the company’s income per user began to rise as soon as it concentrated on the expansion of the advertising segment. Smaller advertisers, in particular, are beginning to spend in digital streaming platforms for the first time, boosting Roku’s development.
A recent round of ad buying from advertisers indicates that Roku may expect exponential growth in this segment of its business in the coming years. Overall, linked TV advertising represents a massive potential. According to EMarketer, connected TV ad spend will increase from $6.4 billion in 2019 to $24.8 billion by 2024. This is a significant market potential for Roku, particularly in terms of recruiting new advertisers. According to the business, more than 42 percent of marketers that purchased ad time on the Roku platform advertised for the first time on the streaming platform. This illustrates the rapidity of the advertising transfer to digital media.