Roku, best known as a streaming device company, has retained its leading position in the North American Connected TV (CTV) ad market, according to a new report from Pixalate. There is a good chance the ads you see on your favorite streaming service come from Roku. The report found that Roku held a 50% market share in the fourth quarter of 2022, followed by Samsung (21%) and Amazon (13%).
Roku’s dominance in the CTV ad market is likely due to its large user base and its focus on advertising. Roku has over 70 million active users and it has been reported that 1 in 3 new TVs sold in the last year are Roku TVs in the United States, and it offers a variety of advertising options for brands. Roku also has a strong relationship with advertisers, which has helped it to maintain its market share.
The report also found that ad spending on CTV grew by 50% year-over-year in the fourth quarter of 2022. This growth was driven by the increasing popularity of CTV and the growing demand for ad inventory as more services like Disney+ launched ad-supported plans.
Roku has always seen itself as an ad company. Selling cheap streaming players and TVs just helps them to grow their user base. This move into advertising has helped Roku stand out as increasingly, most of its revenue has been coming from ads over device sales.
Correction: An early version of this story said Roku had 50 million active users. That was an old number. The new number as of February 2023 is 70 million active users. The story has been updated with the correct number.