Streaming platform and service provider Roku (ROKU) seems a bit behind the curve. But better late than never, as Roku now has a self-service advertising platform that makes it easier for advertisers to buy ad space with Roku. Shares were down fractionally in Thursday afternoon’s trading.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
The new platform is known, straightforward enough, as Roku Ads Manager. And Roku wants to position Roku Ads Manager as not just a way to buy time on one particular streaming service, but rather across the entirety of Roku’s streaming options.
One of the key advantages of Roku Ads Manager is in pursuing concentrated marketing efforts. Advertisers can target specific geographic areas, certain television networks, or even specific audience segments. No more need to be concerned about your ad for small-batch whiskey showing up on an episode of SpongeBob SquarePants. Roku will even go so far as to include new options like tracking pixels and support AppsFlyer mobile management.
“A Platform Monetization Sprint”
A new report noted that Roku is out to make a big splash with its new ad manager tool, going for what some call a “platform monetization sprint.” The Roku Ads Manager platform even goes so far as to include Shopify (SHOP) integration, which will improve ease-of-use and accessibility even further. Reports also note that Roku plans to fund expansion ambitions by paring back spending elsewhere, which should go quite a way toward a prudent budget.
Just to top it all off, Roku’s head of content David Eilenberg will be part of the Realscreen Summit and NATPE Global event in what is being called the first-ever “crossover” event. Eilenberg will be spilling the tea on Roku’s upcoming content strategies and its overall approach to content, including brand partnerships.
Is Roku a Buy, Sell or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on ROKU stock based on nine Buys, eight Holds and one Sell assigned in the past three months, as indicated by the graphic below. After an ~8 rise in its share price over the past year, the average ROKU price target of $77.13 per share is approximately where the stock is currently trading.
