Roku Eyes Int'l Advertising Expansion

Already on pace to take in $1 billion in revenue this year, with a focus remaining on the North American market, Roku sees an even bigger opportunity in international markets.

“International is so important for us because 81% of OTT viewing happens outside of the United States. And 61% of ad budgets come from outside the United States. There are enormous budgets,” said Tariq Mahmoud, director of international ad sales and strategy for Roku, speaking to AdExchanger.

In the U.S., Mahmoud said, OTT ad spending accounts for only 3% of ad budgets, even though OTT viewing accounts for 30% of TV consumption. But the balance is improving domestically.

Related: Global AVOD Revenue to Reach $56 Billion by 2024

“Outside of the United States there’s way more room for improvement,” he added. “You might have a conversation with a TV or digital buyer and they won’t even know who the OTT point of contact is.”

Roku’s “platform revenue”—which is mainly what it makes selling advertising on its AVOD platform, the Roku Channel, as well is in other parts of the Roku ecosystem—was $134.2 million in the first quarter, up 79% year over year.

Roku did not disclose how much of that revenue was generated by international viewing. 

Daniel Frankel

Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!