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Streaming giants Roku and Amazon collaborate with the aim of asserting dominance within the Connected TV (CTV) advertising sector

Merging Forces Grants Access to 80% of U.S. Homes with Connected TVs for Both Companies

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Collaboration grants immediate access to 80% of U.S. households with smart TVs for both entities
Collaboration grants immediate access to 80% of U.S. households with smart TVs for both entities

Boldly Entering the Connected TV (CTV) Realm: Amazon Ads and Roku team up to shake up the market

Streaming giants Roku and Amazon collaborate with the aim of asserting dominance within the Connected TV (CTV) advertising sector

In a move that's set to redefine the rapid-growing CTV advertising sector, Amazon Ads and Roku have joined forces, giving advertisers direct access to an unprecedented 80 million U.S. CTV households, accounting for roughly 80% of these homes [2][3][4]. This landmark collaboration exclusively uses Amazon DSP, promising a fascinating transformation in the world of ad-centric streaming.

The collaboration brings together the largest authenticated CTV footprint in the U.S., encompassing households viewing The Roku Channel, Prime Video, and other streaming services on Roku and Fire TV operating systems, in addition to offerings from Disney, Fox, Paramount, Tubi, and Warner Bros Discovery. It also includes premium publishers [5]. Early tests show that, with this partnership, advertisers can reach 40% more unique viewers with the same budget and decrease the number of times the same individual sees an ad by almost 30%, offering advertisers 3x the value from their ad spend [4][5].

The CTV advertising market is currently the fastest-growing segment in the TV advertising industry, predicted to surpass $33.5 billion by 2025 [4][5]. Despite this explosive growth, the majority of ads are still viewed on linear TV. Prior to the announcement, Roku already held the largest share of CTV devices on the market, with 38%, more than twice that of Amazon's Fire TV platform (18%) [4][5]. However, competitors are not resting on their laurels; Samsung unveiled its Creative Canvas interactive ad service in April, marking the debut of a television manufacturer offering an in-house interactive ad format. LG Ad Solutions also announced a new integration with Amazon Publisher Services (APS), granting marketers access to expanded advertising inventory on LG Channels, LG's free streaming service available on all LG Smart TVs [5] (Read: CTV: TV's Latest Gold Rush).

This joint effort between Amazon and Roku aims to provide advertisers with unparalleled benefits, offering "best-in-class planning, audience precision, and performance to TV advertising" [2]. The combination of technologies promises greater efficiency and enhanced performance for agencies and brands that utilize Amazon DSP. It is designed to eliminate guesswork and deliver results in ways that were previously impossible [2]. The key to this powerful alliance lies in the utilization of a custom identity resolution service, which enables Amazon DSP to recognize logged-in viewers across the Roku OS and devices in the U.S [2]. This exclusive capability enables advertisers to target audiences more accurately and measure results more effectively than previously possible [2][4].

Roku Media President Charlie Collier acknowledged the partnership as a strengthening of the company's long-standing commitment to providing performance-driven, open, and interoperable solutions for advertisers [3]. Collier explained that the integration delivers a unified, future-ready solution at an unprecedented scale, one designed to drive measurable outcomes by unlocking performance across CTV [3]. The integration is set to be available in the U.S., to all advertisers using Amazon DSP, by the fourth quarter [2].

Compared to competitors like Google, Disney, and Comcast, this unique partnership positions Amazon and Roku to lead the CTV advertisement market due to the collaboration's unparalleled scale, improved performance, and addressability across major streaming apps [2]. With almost half of all TV streaming time in the U.S. occurring on Roku, and Amazon's prowess in the retail and beyond arenas, the duo are poised to prove performance and differentiate their DSP offerings for advertisers [3].

  1. The collaboration between Amazon Ads and Roku promises a significant transformation in the ad-centric streaming world, giving advertisers direct access to 80 million U.S. CTV households.
  2. The combined footprint of the partnership encompasses households viewing The Roku Channel, Prime Video, and other streaming services on Roku and Fire TV operating systems, as well as offerings from major players like Disney, Fox, Paramount, Tubi, and Warner Bros Discovery.
  3. With this partnership, advertisers can reach 40% more unique viewers with the same budget and decrease the number of times the same individual sees an ad by almost 30%, offering advertisers 3x the value from their ad spend.
  4. The CTV advertising market is the fastest-growing segment in the TV advertising industry, predicted to surpass $33.5 billion by 2025.
  5. The joint effort between Amazon and Roku aims to provide advertisers with unparalleled benefits, offering "best-in-class planning, audience precision, and performance to TV advertising."
  6. By utilizing a custom identity resolution service, this partnership enables Amazon DSP to recognize logged-in viewers across the Roku OS and devices in the U.S, allowing for more accurate audience targeting and effective measurement of results.

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