Roku’s New Marketplace for TV Ads

July 20, 2018 / Media / 0 Comments /
Roku TV channels

Falling viewership rates for cable TV has some advertisers worried about being able to reach mass audiences. While traditional TV-watching rates remain high for those ages 25–64, there’s no question that companies will need new methods to reach viewers who have cut the cord.

To lead the pack in over-the-top television (OTT) advertising, Roku has announced its new TV commercial marketplace.

Roku’s Ad Options

What makes Roku’s new advertising marketplace unique is its ability to target specific audiences. This gives advertisers far greater precision in their campaigns, ultimately leading to a greater return on investment (ROI) by tailoring their ads to specific groups. The trend toward targeted advertising has been growing in the OTT industry.

According to a recent Wallstreet Journal article, 21st Century Fox, AT&T’s WarnerMedia and Viacom have all signed on to sell television advertising through Roku’s new Audience Marketplace. This ad platform uses audience viewership data to segment out specific groups. These ads will appear during programming when customers watch TV through their Roku or streaming devices.

TV distributors are normally allotted two minutes of advertising space per every hour of programming on Roku. These networks can then sell space to local advertisers, national advertisers or individual groups. The new, highly-targeted Audience Marketplace will likely come at a premium price compared to standard Roku ads. However, the ability to reach the right customers directly will more than make up for the difference in cost.

Cutting Cable Ads for OTT?

The popularity of OTT is certainly growing, and so are its advertising options. But does this mean that it’s time to start moving away from cable advertising? We think not.

The strategy that Strong’s media planners use is to treat OTT advertising as supplemental rather than essential. Like previously mentioned, the ages that generally possesses car-buying capital still regularly watch traditional television. Until the younger generation moves into the prime buyer spot, it would do more harm than good to take money away from a cable advertising budget. If you have the extra money in your co-op spend or media budget to place OTT ads, then go for it. But don’t let your sales wane for lack of cable presence.

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About the author

John Paul Strong: For someone who spends an average of 135 days outside of the office meeting with clients, John Paul Strong remains the driving force behind his Birmingham-based advertising agency, Strong Automotive Merchandising. Strong began his career as a fresh-faced account executive at Martin Advertising. Learning much, but never satisfied, he convinced his father to partner with him in reopening their own advertising agency in 2004, catering exclusively to the automotive industry. The company started strong but humble. The original roster of 10 employees and eight clients has exploded today, growing to 100 full-time employees and more than 220 automotive dealers. And it hasn’t gone without notice. Along the way, Strong Automotive Merchandising has been recognized as a perennial winner in Birmingham’s Best Places to Work contest and as a Top 20 Agency among Google’s National Ad Partners. Yet, Strong still finds time to share what he’s learned along the way. As an avid writer, he has published two books in the Next Day Traffic series, along with more than 1,000 automotive-focused blog posts. He is also a member of the Texas Auto Writers Association, and his success has been recognized in the Birmingham Business Journal’s 2013 “Top 40 Under 40” feature and the 2017 CEO Awards. The foundation for Strong’s career began at the University of Montevallo where he earned a bachelor’s degree in communication studies and advanced public speaking. Always staying ahead of the competition, Strong later went on to study in Harvard Business School’s Executive Education Program. Amid all of his endeavors, Strong always makes time for what matters most – his family. He is a proud husband to Amy, and father to Lilly Grace, Anne Charlotte, Hudson, and Ford.


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