How Does Roku Make Money On Advertising? A Brief Guide

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Ever wonder how the Roku platform works when it comes to advertising? Find out the answer to the question, “How does roku make money on ads?”

Roku is an impressive streaming company that earned over $320 million in sales for 2018. 

People stream there favorite shows and movies with Roku products.

Most apps on a Roku are free, however, so how is the company worth so much?

Continue reading to discover the benefits of using a Roku. Also, discover the answer to the question, “how does Roku make money through advertising and sales?”

1. Easy to Use

Have you ever gone to someone’s house and didn’t know which remote was for the TV or sound?

You likely discovered that the remote was for the lights and probably got frustrated. No matter where you are, Roku is easy to use and won’t leave you looking for the correct remote.

Most Roku remotes have shortcuts to specific apps. If they don’t have their button, press home and navigate through your screen to find your shows. You can also use the voice button to locate specific shows and genres.  

2. Includes a Large Selection of Apps

Even people with smart televisions are going out to buy Roku devices.

This is because of the large selection of apps that you can download. Not all smart TVs come with all apps and a Roku can solve that problem. Simply plug your Roku stick into the TV and gain access to over a thousand apps. 

It is important to note that not all applications are free to use. Some require payment before downloading, while others require a subscription for a channel. With a wide variety of apps, you don’t even need cable! 

3. Special Features

The special features on Roku devices come in handy and make searching much easier for users.

Most new remotes come with voice- search buttons that allow you to speak into the remote to find your favorites shows. Another feature of Roku is their mobile app.

The mobile app helps when the batteries start dying or if you already have 5 remotes and don’t want to add another. You can quickly control your TV from your phone without getting up. You can even use it to find which apps you can watch movies and shows on. 

4. Get Rid of Your Cable Bill

If you are sick of paying for cable that you rarely use, it’s time to cut the cord!

With new technologies and devices, people can get rid of the cable by using localized apps for streaming with OTT advertising. You can learn more about OTT advertising and how it can save you money each month.

Some apps include local channels at a live time, like Hulu Live. With these, you can watch all the shows you normally do all in one place. Getting rid of your cable bill saves money and reduces the number of remotes in the house! 

So How Does Roku Make Money? 

If you are like many people you may be asking how does Roku make money? Also, how much do they cost?

There are various types of Rokus that you can buy. If you want to save on money but sacrifice some features, you can get an older version of Roku. Older versions often work just as well but may not have the convenience of newer devices.

The starting price of a Roku is around $30, making it an affordable streaming option. Depending on your needs, you can buy a more expensive version that includes extra features. 

But how does Roku make money through advertising? 

Advertising is one of the biggest contributors to the company’s wealth. 

Roku is gaining a lot of its money from OTT advertising video services. The videos are the short ads that you see between shows and in the breaks. 

Roku is in the process of building its tech so that it doesn’t require ads from other companies. Currently, Roku relies on vendors and advertisement agencies to bring in the money.  

Other Ways Roku is Making Money

Besides advertisements and devices, Roku is making money in other ways as well. 

Every time that someone subscribes to a paid app, like Netflix and Hulu, a percentage is sent to Roku. This helps users by giving them only one bill to pay for their subscriptions, rather than individual small bills. This makes Roku run similarly to Amazon Prime Video. 

Roku is also making money by releasing data to publishers. The point of this is to allow publishers to compare their data with Roku’s. Sponsered shows, email marketing, and remote buttons are all small contributors to Roku’s sales as well. 

If you are subscribed to Roku, you likely receive emails with channel recommendations and editorials that suggest content. These emails contribute to their total revenue.

Some TV manufacturers are also including Roku software. Roku is getting paid to be the streaming platform on various TV brands around the world. 

Stream with Roku for the Best Binges

There any multiple answers to the questions, “how does Roku make money?”

Between device sales and advertising, this company is making hundreds of millions of dollars a year. They have a user-friendly system that allows people to stream their favorite shows and movies with ease. 

Many benefits come along with using a Roku. Newer devices have a large selection of applications to download and stream from. The remote is easy to use and some even have a voice button to speed up your searching progress. 

Roku is bringing in money through paid advertisements, data, and devices. 

Be sure to check out our blog for more articles on the latest electronic trends and devices! 

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