Roku shares surge on Amazon ad sales deal

(Sharecast News) - The share price of American TV and streaming service Roku jumped on Monday after the news the company is partnering with Amazon to give advertisers access to an estimated 80m connected TV (CTV) households across the US. The deal, with Amazon Ads, will help performance, planning, optimisation and measurement for all advertisers, Roku said.

Advertisers will have access to a logged-in reach of more than 80% of US CTV households - the largest authenticated CTV footprint in the country - through Amazon's demand-side platform (DSP), which automates and centralises media buying from multiple channels.

The partnership will combine addressable markets from each companies' streaming services and devices, including The Roku Channel, Prime Video and other CTV streaming services available on Roku and Fire TV operating systems, like Disney, Paramount and Warner Bros Discovery.

Roku said early tests of the integration showed "significant results", with ads reaching 40% more unique viewers with the same budget, while reducing how often the same person saw an ad by nearly 30%.

"Our exclusive partnership with Roku is a giant leap for advertisers, bringing best-in-class planning, audience precision, and performance to TV advertising," said Paul Kotas, senior vice president of Amazon Ads.

"The collaboration enables agencies and brands that use Amazon DSP to benefit from greater efficiency and higher performance. We're removing the guesswork to provide advertisers with unprecedented capabilities and delivering performance in ways that simply weren't possible before."

Roku shares were up around 9% at $80.84 by 1141 in New York, while Amazon.com was trading 1.7% higher at $215.73.