ICYMI: Roku might try and build its OTT ad business more aggressively in 2020 after expanding its ad capabilities and formats last year
last Thursday, which underscored its position as an early leader in the connected TV market thanks to strong holiday hardware sales along with higher ad sales.The company continued to grow its user base, with global active accounts reaching 36.9 million, a 36% year-over-year uptick.
Roku's growing ad business was driven by a few factors in 2019, including its acquisition of dataxu, the ad tech firm which has enabled advertisers to buy Roku placements through third-party publishers carried on the platform. Another major driver is the popularity of Roku Channel, the company's own free, ad-supported channel that now hosts over 55 live linear channels, kids content, and personalized content selections.
Expanding Roku Channel content. This year will see the launch and growth of both subscription streaming services like HBO Max, Apple TV, and Disney+ and ad-supported services like NBCU's Peacock. To continue growing Roku Channel's viewership — and, accordingly, maintaining advertiser interest — the company will likely need to acquire new content that distinguishes the channel from other options.
As Roku builds out its ad business more aggressively, it's certain to face obstacles — and one such point of friction could be publisher agreements. On the weekend of the Super Bowl, Roku
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