Recently, Roku reported significantly higher-than-expected revenue of $741 million, but investors were concerned with its gloomy outlook on the ad market and a gradual decline in their average revenue per user. To turn things around, the streaming media company unveiled its new products and solutions at the IAB NewFronts.
The products include many different types of advertisements – for example, advertising in its Home Screen, in its original content, and even in its screensaver. Moreover, it bragged about its powerful AI tool that allows brands to quickly and seamlessly run advertisements alongside key moments in shows or movies. Companies just need to provide the theme of their campaign, and the AI will automatically search the library to find relevant moments. The thought was emphasized with a cool example related to the “Project Runway” show.
Roku is also introducing a series of its own Roku Originals – starting with “Side Hustlers,” produced by Reese Witherspoon’s media company Hello Sunshine, which was bought by Candle Media, run by two former Disney executives, in 2021. Additional shows include a celebrity cookoff featuring Sofia Vergara, Juanpa Zurita’s “Carpe DM”, and others. All of them are expected to further strengthen the company’s offerings.
Roku was also keen to share its current success in the US, claiming that more time is spent on the platform than on any other TV service, including Netflix and Hulu. It even noted that Roku accounted for half of all Super Bowl streaming in 2021.
To target the brand’s 71.6 million active users, the streaming company has added many new ad products and placements. Soon, brands will have the ability to advertise on Roku’s “Roku City” screensaver and to host content in certain sections on the Home Screen such as Home & Garden or Sports. Instacart will join other Roku Commerce+ partners – Walmart, Best Buy, Cox Automotive, DoorDash, Kroger – in offering shoppable ads and other features.
Finally, to demonstrate the effectiveness of their new tools, Roku presented Wendy’s’ successful campaign, which made use of DoorDash. As a result, Wendy’s managed to increase the order size among new and returned customers and get a positive ROI.
Roku is an American-based, global streaming platform and content network. Founded in 2002, it offers streaming services and technology, such as the Roku Player, Roku Streaming Box and Cloud TV, which provide users with a diverse selection of content. Charlie Collier is the president of Roku Media, responsible for all advertising and content initiatives. He has been with the company for almost 20 years, working in all areas from brand partnerships to marketing research, to product and strategy.
