Roku Stick 2017 2

Roku’s Ad Revenue to Top $293 Million in 2018

Roku is having strong growth in device sales that is translating into ad revenue. According to eMarketer, Roku will top $293.3 million in ad revenue in 2018, which is a 93% jump in revenue in just one year.

eMarketer also predicts that Roku will hit $476.4 million in ad revenue in 2019 and $701.7 million in ad revenue in 2020.

In the first quarter of 2018, Roku generated $61.5 million in hardware sales and earned $75.1 million with their advertising and licensing fees. Roku also reported that half of all their new users now come from Roku TVs. Roku had $136.6 million in revenue beating the expected $128 million.

Next week Roku will announce the second quarter 2018 numbers, which should give us a clear idea of how quickly they are growing their ad sales as they move from being a hardware-first company to an ad-first company. This was all confirmed a few weeks ago by Roku’s CEO and founder.

Now that does not mean Roku is moving away from hardware. Like Google, Roku sees hardware sales as a way to grow their ad base.

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