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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. However Roku doesn’t sell most of the ads that run on its platform; most of it is sold by the publishers on the platform, said Roku gm of platform Scott Rosenberg on the earnings call. Enabling publishers to control ad sales on their channels has helped Roku to win favor with media companies, especially as more launch their own OTT apps. In June the company debuted Roku Audience Marketplace, a program for publishers to sell ads in their Roku channels that can be targeted using Roku’s first-party data and ad tech.
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