Episode 86: Jay Askinasi tells us whether Roku is a streaming platform, an ad platform or a hardware company
Aug 23, 2024
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Jay Askinasi discusses Roku's unique identity as a streaming platform, ad company, and hardware maker. He highlights how Roku engages users while democratizing advertising for smaller businesses in the competitive streaming space. The conversation also dives into the transformative role of agencies in navigating this complex landscape and introduces Roku City as a hub for innovative advertising. Additionally, they explore the rising significance of attention metrics in advertising and the challenges of standardizing them for better effectiveness.
Roku's multifaceted ecosystem integrates streaming, advertising, and data, claiming 50% of the U.S. operating system share in connected TV.
Emphasizing adaptability, Roku blends traditional TV methods with digital strategies to enhance its advertising platform and meet market demands.
Deep dives
Roku as an Ecosystem
Roku is viewed as a multifaceted ecosystem that serves both consumers and marketers by integrating streaming content, advertising, and data. With a strong market presence, Roku claims approximately 50% of the U.S. operating system share, positioning itself as a leader in connected TV. This growth is attributed to its ability to deliver diverse content while providing valuable data insights for improving advertising effectiveness. By combining its hardware with a significant user base, Roku is redefining itself as a substantial player in the media landscape, offering insights and creative capabilities to clients.
Ad Tech Innovation
Roku emphasizes the importance of adapting to the rapidly changing landscape of ad-tech, where staying nimble and innovative is key to success. The introduction of UID integration with Trade Desk highlights Roku's commitment to evolving its advertising solutions while ensuring seamless collaboration with other major players in the CTV space. As programmatic buying gains traction, Roku aims to utilize its significant logged-in user base to enhance targeting and measurement capabilities for marketers. This strategic move demonstrates Roku's focus on creating a robust advertising platform that leverages its inventory effectively while maintaining consumer privacy.
Digital Versus Traditional Sales Approach
The approach to market by Roku has transformed, blending traditional TV selling methods with digital advertising strategies as the ecosystem evolves. Initially, Roku operated more like a traditional TV seller focused on incremental reach for linear clients, but has shifted toward a more digital-oriented model as streaming continues to dominate. Understanding the need for data-driven purchases, Roku is adapting to the demands of a growing number of digital buyers who prefer programmatic solutions. As a result, Roku aims to support both traditional and digital buying methods, ensuring that it remains competitive in an ever-changing advertising environment.
The Intersection of CTV and Retail Media
A notable trend in the advertising landscape is the convergence of CTV and retail media, offering brands a unique opportunity to engage consumers more effectively. Roku's capabilities enable advertisers to tie exposure directly to sales, making it an appealing proposition for retail brands looking to maximize impact. The considerable reach that Roku offers paves the way for advertisers to utilize the platform for measurable outcomes, capitalizing on a logged-in audience actively engaged in their content. This performance-based television approach allows Roku to support brands in strengthening their relationships with consumers through innovative advertising solutions.
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