Roku may have made its name as a connected TV device maker, but advertising is now the biggest and fastest-growing part of the company, reports Digiday, which added that in the first quarter of 2018, “Roku’s platform revenue — which includes its advertising revenue — surpassed revenue from sales of its connected TV hardware. That gap widened in the second quarter, as Roku rolls out new means to make money from advertising.

“Roku’s platform revenue increased by 96 percent year over year to reach $90.3 million in Q2, the company announced on Aug. 8. By comparison, its player revenue — which includes its hardware revenue — was $66.5 million in the quarter, a 24 percent increase year-over-year that was mainly driven by a 22 percent increase in unit sales.

“Roku gets most of its ad revenue from video ads that it sells on the ad-supported channels that its 22 million active account holders can watch through its devices. It also makes money from publishers paying to promote their channels on the devices’ home screens. That overall ad sales revenue growth more than doubled year-over-year, according to the company.”

More here.

 

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