Amazon and Roku believe that if they work together, they can increase sales of digital advertisements.
By pooling their addressable audiences through Amazon’s demand-side platform, the two streaming behemoths—which control the Roku Channel streaming service and the Amazon Fire broadband interface, respectively—will make it possible for marketers to purchase impressions linked to Amazon Prime Video, Roku Channel, and other streaming services accessible on the Roku and Fire TV operating systems.
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In an interview, Kelly MacLean, a vice president at Amazon’s ad unit who manages sales connected to its Amazon DSP, states that the alliance’s goal is to “enable seamless access to logged-in users across major streaming apps.” Early testing of the technology, according to the businesses, suggest that advertisers can reach 40% more new viewers while reducing the frequency of a particular ad appearing in front of the same people by over 30%.
According to Roku and Amazon, their collaboration will open up access to 80 million TV households in the United States. Roku collaborates with other demand-side platforms, such as those run by Google, Yahoo, and The Trade Desk, which are rivals of Amazon’s DSP.
The two streaming giants join forces as Madison Avenue struggles with an excess of broadband-TV inventory available on the market, much of which is increasing as a result of Amazon and Netflix’s forays into ad-supported streaming. The main focus of this collaboration will be “programmatic” advertising, or digital inventory that is purchased using algorithms that specify the characteristics of the particular customers a marketer is looking to reach.
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under a time when audiences are becoming more dispersed across multiple platforms, the combination of the Roku and Amazon user bases under this agreement may increase the scale that advertisers may obtain.
According to Jay Askinasi, senior vice president of global media revenue and growth at Roku, the collaboration would result in “a better experience for marketers, consumers, and programmers that are on our platforms.” “It means more addressability and measurement on our programming partners, better frequency management from a consumer perspective, and more relevant ads.”
The integration makes use of technology that enables Amazon’s DSP to identify viewers who are logged in across Roku devices and OS systems in the United States. The service will enable advertisers to more accurately target audiences. By the fourth quarter of 2025, the new service will be accessible to all marketers using Amazon DSP in the United States.
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