Have you ever wondered how much money Roku makes from showing you those ads every year? According to Roku, they make, on average, $40.67 per user every year. This comes from the 1st quarter 2023 earnings report. (This number is an average over the last 12 months.)
“In Q1, Roku grew Active Accounts to 71.6 million globally. Sequential net adds of 1.6 million were above net adds in Q1 2022. In the U.S., our Active Accounts are approaching half of all broadband households. This unmatched scale is the foundation of our business model, leading to significant engagement and growing monetization opportunities.” Roku said in a statement on their website.
Roku, like many ad companies, does see its numbers down slightly. The average revenue per user is down about 5% in the first quarter. It is also down even more from the high in the 3rd quarter of 2022 when it was $44.01.
In total, Roku had revenue of about $635 million, and most of that came from Roku ads sales vs the sale of new streaming players.
To help grow ad revenue today, Roku announced a deal with Instacart to let Roku users order products on Instacart after they see an ad. Roku expects revenue to grow in the 2nd quarter to $770 million.
“Our goal is to help marketers get more of what they love in TV,” said Alison Levin, Vice President of Ad Revenue and Marketing Solutions, Roku. “Our partnership with Instacart makes it easier to measure actual return on advertising spend in e-commerce and meet consumers where they are – streaming TV.”
The new capability represents Instacart’s first TV streaming measurement partnership and will offer advertisers consumer purchase insights from its Marketplace, which includes more than 1,100 retail banners and more than 80,000 stores in North America. With Instacart Ads, thousands of CPG brands – from category leaders to emerging brands – partner with the company to connect directly with consumers online, right at the point of purchase.
“With Instacart Ads, we’re committed to providing CPG brands with the ad products, automation, insights, and measurement they need to help them meet their objectives and prove the impact of their investment,” said Ali Miller, Vice President of Ads Product at Instacart. “We’re proud to partner with America’s #1 TV streaming platform, Roku, to give CPG brands even more insights to help them enhance and optimize their campaigns across streaming TV. As we look ahead, we’ll continue investing in integrations and insights across every touchpoint of the consumer journey to help CPGs drive and measure results.”
Are you surprised that Roku makes $40 every year from you just by seeing ads? Leave us a comment and let us know what you think.