Key Points
- Roku has launched a new platform that enables ad tech developers to gain access to its first-party capabilities.
- The platform, called Roku Ads API, already counts Tealium and Haus among its users.
- Most of Roku’s revenue comes from its advertising business; the launch of Roku Ads API allows it to chase even more connected TV ad dollars.
Roku is chasing after more connected television (CTV) advertising dollars with the launch of a new self-serve ad platform that aims to make it easier for buyers to launch flexible campaigns across their apps and devices.
The new platform, called Roku Ads API, is primarily aimed at advertising developers who want direct access to Roku’s first-party advertising capabilities, the companies said on Tuesday.
The open platform allows them to integrate Roku’s CTV advertising tools into their own systems to help marketers launch, optimize and measure campaigns without manual approval or closed-garden restrictions, Roku said.
At launch, Roku Ads API will support three core functions: reporting, audience targeting and conversion tracking. The reporting endpoint lets partners pull campaign data directly into business intelligence tools; the audience feature enables partners to upload custom audience segments for targeting; and the conversion endpoint connects partner data to Roku’s attribution and optimization systems in real time. Additional features for campaign and creative management are slated to debut later this year.
“Advertisers increasingly expect CTV to integrate seamlessly with the tools they already use,” said Peter Hamilton, the Head of Ad Innovation at Roku. “The Roku Ads API makes that possible by giving developers an open platform to build new functionality and deeper integrations across the ecosystem.”
Roku positioned the Ads API as a contrast to the permission-based models common in streaming advertising, saying it is designed to provide frictionless access to the platform’s tools. Developers can register for credentials through Roku Ads Manager and begin integrating directly into the company’s systems, allowing them to retrieve campaign performance data, create audiences and connect with internal or third-party solutions.
Launch partners include Tealium and Haus, both of which emphasized the benefits of the open API approach for advertisers focused on measurable results.
“Tealium enables advertisers to maximize Roku’s API-driven CTV capabilities by securely unifying and activating high-quality proprietary data in real time,” said Matthew Gray, the Senior Vice President of Global Partnerships at Tealium. “Advertisers can now extend the partners they already rely on for social into CTV, with a sharp focus on driving better business outcomes.”
Haus Chief Strategy Officer Olivia Kory added that the new tools improve transparency and measurement across the CTV landscape.
“Measuring the true impact of CTV has historically been tough,” she said. “Roku’s Ads API lets measurement partners sync delivery data in real time and power advanced measurement, enabling advertisers to understand what’s working and tie budgets to business outcomes.”
Roku is one of the largest CTV platforms in the world, with a 40 percent share of the CTV user market in the United States.
Advertising has become a bigger part of Roku’s business amid waning hardware sales — most streamers have already picked which platform they prefer to use, and those who wanted Roku’s smart TVs or streaming sticks have likely already purchased one.
During its third financial quarter (Q3) of the year, Roku reported a 5 percent drop in device sales, clocking at $146 million. At the same time, the company saw $1.07 billion in advertising and subscription revenue, up 17 percent. Nearly all of its $1.21 billion in total revenue came from the advertising and subscription side of its business.
