Roku’s advertising business continues to gain momentum as streaming ad dollars shift away from traditional TV. The company says its video advertising growth is outpacing the broader over-the-top (OTT) market, driven by AI tools, self-serve ad products, and new partnerships across the connected TV ecosystem, as reported by Marketing Dive.
According to the company’s latest earnings update, Roku’s platform revenue, which includes advertising and streaming distribution, increased 18% year over year to $1.22 billion in Q4. Full-year platform revenue reached $4.15 billion, reflecting continued demand from brands moving budgets into streaming environments.
Streaming Ad Spend Keeps Moving Toward CTV
Roku executives say the shift from linear TV to streaming remains a major growth driver. CEO Anthony Wood noted that traditional television advertising budgets are still migrating toward connected TV platforms, giving Roku an opportunity to capture a growing share of those investments.
The company positions itself as a major distribution and advertising hub, operating both a streaming platform and ad-supported services like the Roku Channel. Based on hours streamed, Roku says it remains the leading streaming TV platform across the U.S., Canada, and Mexico.
AI Tools Are Expanding Access for Smaller Advertisers
One of Roku’s biggest growth areas is its self-service Ads Manager, aimed at small and mid-sized businesses that historically could not afford TV advertising.
Generative AI is helping reduce creative and production barriers. Roku says tools that convert social content into television ads and automate campaign creation are opening CTV to new advertisers.
The platform highlighted an example campaign where a beauty brand saw a 40% lift in sales after launching its first TV effort through Roku’s ad tools.
Partnerships And Ecosystem Expansion
Roku continues to expand its ad-tech relationships to improve targeting and measurement. A major partnership with Amazon Ads aims to create one of the largest authenticated connected TV audiences in the U.S., although executives say the collaboration remains in early stages.
The company also integrates with platforms such as Yahoo DSP, The Trade Desk, Magnite, and AppLovin, positioning itself as a central layer in the connected TV advertising ecosystem.
What It Means For Marketers
Roku’s growth highlights how connected TV is evolving from a premium channel into a scalable performance platform. As AI tools simplify ad creation and buying, more brands are testing television advertising for the first time.
For marketers, the shift signals three changes:
- More competition for streaming inventory as budgets leave linear TV
- Lower barriers to entry for SMB advertisers using AI-driven tools
- Greater reliance on partnerships and identity solutions to improve targeting and measurement
As streaming continues to scale, platforms like Roku are betting that automation and AI will reshape how TV advertising is bought and optimized.
