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Roku Advertising Guide: Costs, Features & Best Practices

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By Emily Sullivan

In today’s digital age, where streaming has become the primary mode of entertainment for millions worldwide, advertising has evolved significantly. Among the frontrunners in this revolution is Roku, a leading player in the over-the-top (OTT) advertising space. 

With over half of the U.S. population expected to use at least one ad-supported streaming service monthly by 2026, learning how to effectively leverage streaming platforms like Roku

 has become essential. In this post, we’ll dive into the world of Roku Ads, offering insights, strategies, and practical tips to help navigate and succeed in this space.

 

What is Roku?

Roku is a pioneering brand in the realm of TV streaming. Since its inception in 2012, Roku has been at the forefront of transforming how viewers access digital content. Roku offers a sleek black box that connects to any TV via HDMI, as well as Roku TVs which are smart TVs that have Roku’s built-in streaming platform, instantly enabling access to a wide array of streaming channels. For those already equipped with internet-connected devices, Roku also functions seamlessly as an app.

The appeal of Roku for consumers lies in its user-friendly interface and a minimalist remote control, which simplifies navigation compared to traditional TV setups or direct laptop connections prone to technical issues. Users can enjoy both free and premium content from popular services like Netflix, Amazon Prime Video, and Crunchyroll, among many others.

Key to Roku’s ecosystem is its Channel Store, a marketplace offering a vast selection of apps catering to diverse interests and preferences. This store spans entertainment, news, sports, and more, ensuring there’s something for everyone. Roku also generates revenue through advertising spots within its platform and by taking a portion of subscription and ad revenues from streaming providers accessed via Roku.

As of the first quarter of 2024, Roku reported 81.6 million active accounts worldwide (Source). More than 100 billion hours were streamed on the platform in 2023, averaging a record of 4.1 hours per day per account in Q4 which is a lot of eyes watching a lot of content. 

With the world of streaming and streaming advertising continuing to grow, Roku presents a compelling opportunity for advertisers. By tapping into Roku’s expansive user base and diverse content offerings, brands can effectively reach consumers who are increasingly turning to streaming platforms for their entertainment needs.

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“Roku is a major player in the streaming TV industry, offering diverse capabilities that add incredible value to our clients at Tinuiti. Their extensive user data and precise targeting, coupled with their commitment to measurement and their investment in content and FAST viewers through The Roku Channel, consistently provide growth and opportunities for us as partners.”

Adrena May Senior Director, Media Investment at Tinuiti

Costs of Advertising on Roku

Advertising on Roku involves several cost considerations, primarily measured through CPM (Cost Per Thousand Impressions). CPM refers to the cost advertisers pay for every thousand views or impressions of their ad. Let’s break it down… 

CPMs Explained

What it Stands For: CPM stands for Cost Per Mille, which translates to “cost per thousand impressions.” In advertising, an impression is counted each time your ad is displayed. So, CPM tells you how much it costs to reach 1,000 viewers with your ad on Roku.

Ballpark CPMs: Industry sources suggest a range of $20 to $60 CPM for Roku advertising. However, it’s important to understand this is a broad estimate. For a more accurate idea of your specific costs, it’s best to consult a Subject Matter Expert specializing in Roku advertising. Also, keep in mind that brands partnering with a performance-first agency, like Tinuiti, should anticipate substantially more efficient CPMs.

Factors Affecting Cost

Remember, while CPM gives you a baseline cost, it’s just one piece of the puzzle. For an accurate picture of your advertising budget, consider factors like total campaign duration, audience targeting, desired reach, and specific ad goals.

Roku Ad Formats & Key Features

Roku offers a variety of ad formats to reach viewers across their platform, including those who subscribe to ad-free channels. Here’s a breakdown of the main options:

Additional Options:

Technical Specifications:

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Partnerships Fuel Roku’s Success

Roku partners with various companies to enhance its advertising capabilities:

Roku’s Cutting-Edge Features

These are just some of the features that make Roku a powerful platform for advertisers. With its diverse ad formats, sophisticated targeting tools, and strategic partnerships, Roku offers a unique opportunity to connect with a large and engaged audience.

Roku offers advertisers a variety of options that take full advantage of the unique media platform. From traditional 15- to 30-second spots to full-screen interactive video and interactive overlays. Every single advertising format is an opportunity to engage with customers in new and immersive ways. 

You can learn more about Roku’s advertising solutions here.

Roku Advertising Best Practices

Before diving into best practices, it’s crucial to understand Roku’s advertising guidelines. These guidelines ensure a positive experience for both viewers and advertisers. Some key points to remember:

Retargeting for Maximum Impact

Roku offers features that enable effective retargeting strategies. Here’s how you can leverage them:

Additional Best Practices

Conclusion

Roku ads offer a targeted and cost-effective way to reach a large audience of streamers. As marketers, understanding Roku’s advertising landscape is key to navigating the ever-evolving world of streaming.

Looking to learn more about Roku advertising? We’d love to help. Check out our TV & Audio Services page for more information, or contact us today.

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