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As audiences are more likely to hit the cord, Roku is seizing its opportunity as an ad-friendly streaming video platform.
due to its dominant position in OTT advertising
and potential for international expansion. The company reports earnings on Wednesday.
Roku is also facing Google's Chromecast, Apple TV and Amazon Fire TV. Amazon's streaming video advertising business is just starting up, but the company has also announced it to expand its advertising options, CNBC previously reported. Google has a live streaming TV service, YouTube TV, which it argues offers advertisers the exact TV audience they want to reach. And Apple is aggressively buying its own shows and movies for an upcoming service, it is not ad-supported.
For users, the changes could make it easier
But it's really Roku who stands to gain the most. Roku's platform revenue reached $ 90.3 million last quarter, growing 96 percent year over year. Its average revenue per user (ARPU) reached $ 16.60. EMarketer projects Roku will generate $ 293 million in revenue in 2018, noting money to over-the-top (OTT) streaming video companies is going to continue to increase TV ad spending declines.
"With Google and Facebook, you have the ability to place ads, but you do not have the same type of content. [minutes] to an hour undisturbed, "said Raghu Kodige, chief product officer for TV data company Alphonso.
Apps that appear on Roku 's platform have to let Roku sell up to 30 percent of their ad inventory and give up as much as 20 percent of one – time purchases (like movies). Larger, more popular streaming services
Roku's own company, the company is proposing it will handle and get 55 percent of the revenue, according to one industry executive. Ads would range from traditional 30-second ad breaks, display banner ads and sponsorship opportunities around themed video playlists. For example, a collection of road trip
Media companies may be willing to sign on. Roku is one of the leading companies in Roku because it is one way to increase revenue, according to one media executive. Roku also reaches the audience who does not have cable or satellite subscriptions, another executive noted. 55 percent of the ad revenue source, added source. It will also increase the popularity of Roku's streaming services.
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