Welcome To AdTech Weekly
Is Advertising Driving Roku's Fantastic IPO Launch?
What happens when companies take their advertising stacks into their own hands and stop relying on exchanges for revenue? Just ask Roku. The company is a glowing example of how advertising can still drive growth for media companies and platforms.
Roku’s first day of trading saw stock values skyrocket by 67% (it’s now up another 20% at the time of writing). Everyone talks about Amazon and Apple in the internet-TV space, as well as the advertising models associated with over-the-top (OTT) products and platforms. But Roku often goes unmentioned around adtech circles.
When you dig into the numbers, Roku is doing a lot right. I’ve always been surprised by how far under the radar they’ve flown, considering the company’s tremendous success.
Some interesting numbers popped up in the company's Prospectus Summary:
As of June 30, 2017, we had 15.1 million active accounts. By comparison, the fourth largest multichannel video programming video distributor in the United States had approximately 13.3 million subscribers as of June 30, 2017. Our users streamed more than 6.7 billion hours on the Roku platform in the six months ended June 30, 2017, 62% growth from the six months ended June 30, 2016…
In fiscal 2016 and the six months ended June 30, 2017, respectively, advertising revenue represented 63% and 67% of total platform revenue.
Roku’s monumental growth over the last couple of years stems from its “Switzerland” approach to partnerships with media companies and its fantastic use of advertisements across its platform. While it welcomes everyone onto its service, Roku’s monetization efforts have had the biggest impact on the company's growth.
If you’re looking for use cases or a company that’s doing advertising right, look to Roku. The company gets it.
AdTech News And Editorial
The FT warns advertisers after discovering high levels of domain spoofing
The Financial Times has investigated the scale of domain spoofing occurring against its site, and has been shocked by the results.
If Data is the New Oil, Are Tech Companies Robbing Us Blind?
Data is the new oil, or so the saying goes. So why are we giving it away for nothing more than ostensibly free email, better movie recommendations, and more accurate search results?
The digital ad industry is officially out of ideas
Digital advertising sure seems to be stuck thinking inside the box.
Publishing
Facebook Subscriptions: 'Tokenism' or a Real Test?
Facebook is likely to formally announce its news subscriptions initiative this week. In that announcement, the names missing may be as noticeable as those included.
Pivoting-to-video publishers face a big monetization gap
Publishers are pivoting to video, hoping it’ll pay off in ad dollars. But despite the big view numbers they’re generating, the revenue is often a mirage.
Programmatic
‘Spoofed’ Online Ads Irk Publishers and Marketers
“Domain spoofing undermines the entire industry. It’s like fake Rolex watches on the street driving down the prices of the real thing,” said Jason Kint, chief executive of online publishing trade body Digital Content Next. “More importantly, the marketer believes they’re buying a premium environment and they’re getting crap.”
Study: 72% of CMOs feel pressure from brand safety issues
Marketing executives are concerned about brand safety in digital advertising with 72% of CMOs facing pressure from their bosses to secure brand trust, according to a CMO Council report.
Future Of Advertising
Consumers Love to Hate Ads but Won’t Pay to Escape Them
Despite reporting disruption and minimal entertainment value from most ads, 67 percent of Americans aren’t willing to pay more for a service without ads.
Google's Search Changes May Not Level Playing Field
Google will allow rivals to bid on coveted advertising spots that it previously reserved for itself at the top of product search results in Europe, but there are widespread doubts that the move will create meaningful competition.
Acquisitions
OpenX Acquires Mezzobit And PubNation To Sweeten Publisher Offering
OpenX acquired two publisher tools, Mezzobit and PubNation, on Monday. By bringing these point solutions in-house, the SSP plans to strengthen its overall offering for publishers.
Platforms
Roku closes up 67% on first day of trading
Roku jumped up 67% on its first day of trading as a public company, closing at $23.50 after opening at $15.78.