Roku says advertising outperformed overall ad market and OTT ad market

The company states: “In Q3, the YoY growth of advertising activities across the Roku (ROKU) platform – excluding M&E (media & entertainment) – outperformed both the overall ad market and the OTT ad market in the U.S.9 The YoY growth of Political, Retail, and Consumer Packaged Goods ad verticals, among others, were up on the Roku platform, while the M&E and Health & Wellness ad verticals were pressured. Due to our many growth initiatives and focused efforts to diversify ad demand, M&E is a significantly smaller percentage of our overall Platform business now versus the last several years. We continue to leverage the power of our Home Screen to grow monetization and diversify revenue across ad verticals. The NBC Olympic Zone, featured on our Home Screen, was sponsored by leading brands across a diverse array of verticals including Retail, Transportation, Telecom, and Auto. In September, we partnered with the Television Academy to present The Emmys Collection, a dedicated destination for Emmy-nominated and winning titles. The collection was sponsored by a large specialty beauty retailer in the U.S. These viewer destinations drive engagement while broadening the sponsorship portfolio we offer to advertisers. As a result, ad spend on our Home Screen from non-M&E brands has grown in each of the last three quarters. We continue to drive new sources of ad demand. In Q3, we expanded our ad offering to better serve small and medium-sized businesses (SMBs). Roku Ads Manager is our new, self-service CTV advertising solution, providing performance features like advanced targeting, conversion optimization and measurement, and even shoppable ad formats. This solution builds upon our growing list of ad offerings that provide advertisers more choices for how they buy Roku Media – whether it be through direct IO (insertion order), a preferred DSP (demand-side platform) partner, or now through self service. This allows us to serve a diverse array of advertisers, across verticals and business-sizes, from SMBs to enterprise companies. We also continue to deepen our relationships with third-party platforms to better serve advertisers’ programmatic needs. We have partnered with The Trade Desk (TTD) so that TTD customers can leverage Roku Media and audience data programmatically, and we have integrated Unified ID 2.0, TTD’s identity solution. This represents our deepest integration to date with a third-party DSP, and we are beginning to see positive impacts. We’ll continue to do more integrations that expand our ability to serve the entire demand curve at multiple price points and in doing so, we expect to drive incremental revenue over time.”