Roku has been working to draw in more DTC brands to expand its ad revenue.
The company has historically worked on cracking big traditional TV advertising deals and has released new features to serve high-growth DTC brands better. This includes unique ad units like Action Ads, announced earlier this month in partnership with Shopify. This ad unit prompts users to purchase on Roku streaming devices by sending users a text or scanning a QR code. Roku also offers a more robust set of performance metrics with closed-loop measurement through its partnership with third-party platforms like Instacart.
This move comes as more digitally-native brands are looking to diversify their advertising spending away from digital juggernauts Facebook and Google. Warby Parker, for example, recently reported during its second-quarter earnings earlier this month that it was concentrating more of its marketing spend in areas like linear TV. During its second-quarter earnings report, Rokuâs platform revenue jumped 11%Â to $744 million.
Roku primarily works with DTC brands within its growth business, which was formed in the fourth quarter of 2019 with the companyâs acquisition of Dataxu. It is a division that works with growth agencies, direct response TV advertisers, and emerging brands from the mobile and performance communities to get them to spend more on Roku.
The company said that Rokuâs growth division has transformed into a business supporting more than 100 agencies and clients, adding hundreds of millions in revenue. The company pointed to brands like Lovevery as success stories. Lovevery sells products and subscription boxes for new babies and has seen a 170% lift in purchases by running streaming campaigns with Roku and leveraging its first-party data to reach its target audience.
And Miles Fisher, Rokuâs senior director of growth and platform sales, is leading the company to accelerate this…