Roku, Shopify Partner to Increase Access to CTV Advertising Campaigns

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The news: Roku launches an application that allows Shopify salespeople to develop and purchase television advertising campaigns. Roku would not share an exact launch date, but the app is expected to be released before the holiday season.

  • A select group of brands are using the self-service tools in a limited pilot, including the prebiotic soda brand olipop, manufacturer of loungewear Jamby, and beanbag company Lunar pod.
  • “Roku-Shopify partnership allows easy entry into streaming advertising space” Audrey Bryce, Growth Marketing Manager at Olipop, said eMarketer. “[Connected TV (CTV)] and OTT are becoming increasingly valuable channels in the pay media space and have proven to be a significant driver of brand awareness for Olipop.
  • Ads from Shopify merchants will be inserted in 15 and 30 second spots mainly in The Roku Channel content.

The competition: Roku is the first to market this particular offering aimed at small and medium-sized businesses (SMBs), and the competition for SMB dollars within the CTV ad space is not really intense.

  • To advertise with video ads on Amazon need minimum expenditure of $ 35,000, and HuluThe self-service advertising platform of is currently in an invitation-only beta phase.
  • Roku did not tell us about its minimums, but said it would be “much lower than a traditional TV ad campaign.”

The opportunity: The move comes amid Roku’s recent efforts to improve its own measurement capabilities.

  • The purchased platform Nielsen‘s Advanced video advertising group in March for this very reason.
  • In April, Roku also added six new partners, including Branch and Adjust, to its Measurement partnership program, which allows advertisers to measure top-of-the-funnel metrics and performance-based marketing.
  • The platform also created an in-house advertising studio in March to facilitate the production of streaming ads by brands.

Key statistics:

  • In Q2 2021, Roku announced 55 million active customers who broadcast 17.4 billion hours of content with increasing revenues 81% from last year to $ 645 million.
  • During this period, revenue per user surged 46% To $ 36.46.
  • While Roku does not specify its total ad revenue, it said second quarter monetized video ad impressions were more than double what they were at the same time last year, and advertisers spend in their OneView advertising platform almost tripled from year to year.
  • Meanwhile, Shopify has around 1.7 million sellers on its platform and expands its field of action.

What this means for SMEs: SMBs tend to shy away from traditional TV advertising because they are less likely to have the budget to engage in large advertising purchases from the start. They are also less likely to be able to afford a media agency.

  • The Roku-Shopify partnership addresses these issues by allowing advertisers to pay as you go and directly download the advertising elements themselves.
  • Roku will also help SMEs develop spots that will work on the platform and work with its advertising capabilities.
  • “This allows Roku to catch up with Amazon’s strength with e-commerce advertisers,” said Ross Benes, senior eMarketer analyst at Insider Intelligence. “Amazon doesn’t have this type of partnership because it doesn’t need it, but this type of partnership is more useful to Roku. This partnership gives Roku an indirect way to attract ecommerce advertisers who are not yet advertising through CTV.


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