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Roku Inc. ROKU has unveiled a new campaign aimed at creating brand awareness in the runup to the end-of-year holidays. The “Ok, Roku does that” follows up on recent product launches including the Roku Express, Roku Express 4K, Roku Streaming Stick 4K and Roku Streambar, and highlights the streaming platform's innovation, ease of use and simplicity.
The spot shows different moments in history where people are impressed by game-changing new inventions like the wheel, a ladder, a paperclip, eyeglasses and a fire extinguisher, before eventually revealing a couple using a Roku TV.
Roku is spending tens of millions of dollars on the campaign, which will run from October to December. The campaign is designed to create long-term brand awareness for Roku heading into the holiday season after a recent Roku and Harris survey found that 32% of the consumers plan to purchase big-ticket items over $500, with 63% gearing up to purchase consumer electronics.
It includes out-of-home and social media campaign elements, including displays in major cities and travel hubs like New York, Los Angeles, Chicago and Atlanta.
The spot will air during big linear shows like Dancing with the Stars, Bachelor in Paradise, The Masked Singer and NFL’s Thursday Night Football, as well as in college football and MLB games.
The availability of third-party streaming channels on the Roku platform, including Discovery+, Disney’s DIS Disney+, HBO Max, Paramount+, NBCUniversal, as well as Peacock, Amazon Prime Video, AppleTV+, Hulu, and Netflix, and continued investments in The Roku Channel have significantly contributed to engagement growth and helped in building the company’s brand.
Roku, Inc. Price and Consensus
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Roku’s Efforts to Attract Ad Revenues
Roku is benefiting from advertising spend reallocation toward TV streaming as marketers accelerate their shift out of traditional TV and into TV streaming.
Through the above campaign, this Zacks Rank #1 (Strong Buy) company attempts to create long-term brand awareness and eventually benefit from the increasing spending on addressable TV advertising in the United States, which is expected to jump 75% from August 2020 to $3.6 billion by 2022, according to eMarketer. You can see the complete list of today’s Zacks #1 Rank stocks here.
Roku’s recent collaboration with Shopify SPOT represents another step in the growth of the streaming TV ads as well as the convergence between commerce and content. It will become the first streaming TV app available on the Shopify App Store as it looks to help merchants build, manage and measure their advertising campaigns.
Small- and medium-sized businesses (SMBs) on the e-commerce platform will be able to download the Roku app and set parameters around their target audience, budget and intended campaign duration, as well as upload creative assets. Campaigns can then be launched within minutes to Roku's audience of 55.1 million active accounts
The integration, timed to be rolled out ahead of the busy holiday period, is being beta-tested by partners like personalized candle and book marketer Birthdate Co., loungewear brand Jambys, beanbag seller Moon Pod and soda maker Olipop.
Meanwhile, the growing popularity of Roku’s OneView ad platform is a growth driver. The company recently expanded its Canadian TV advertising offering with the introduction of the OneView advertising platform. The ad platform is designed to help advertisers use TV identity data to create ads across OTT, desktop and mobile from a single hub.
The strategic partnership with Nielsen NLSN to integrate complementary Nielsen ad and content measurement products into the Roku platform and further advance Nielsen ONE, the company’s cross-media measurement solution is expected to have been a key growth driver.
We believe that Roku’s growing efforts to attract advertisers to its platform will drive top-line growth in the near term.
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