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"advertising revenue: Platform revenue more than doubled year-over-year

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crudeoil24 Member Level  Friday, 11/10/17 01:13:06 PM
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"advertising revenue: Platform revenue more than doubled year-over-year to $57.5 million, and advertising represents about two-thirds of that segment. Average revenue per user grew 37% to $12.68, which Louden credited to the advertising business.

"Advertising is the fastest-growing piece of platform," Louden said. "We've been investing heavily in the video ad side, and so that business in terms of the number of ads we're serving is growing dramatically. A lot of advertisers are coming to the realization that they need to follow the audience and that audience has decidedly moved to streaming."

Video ads make up the largest portion of the advertising part of the business via several types of content deals, as well as video ads in the operating system itself and sponsorship deals for ads that take over the Roku home screen.

"I like them all because they all have relatively high margins," Louden said. "But some have extremely high margins because, say, the home screen display is ours, so there is very little cost around that."


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