Roku Stock Surges On New Integration With Amazon: Details Of The Deal

Roku Inc ROKU shares are rising Monday after the company announced a new strategic integration with Amazon Ads.

What To Know: Roku entered into a new exclusive partnership with Amazon.com Inc AMZN Ads, providing access for advertisers to the largest authenticated Connected TV (CTV) footprint in the U.S. exclusively through Amazon’s demand-side platform (DSP).

The deal will deliver logged-in reach to an estimated 80 million CTV households in the U.S., opening up improved performance, planning and optimization for advertisers. The companies said early tests showed the integration allows advertisers to reach up to 40% more unique viewers with the same budget, and decreases how often the same person sees the same ads by close to 30%.

“This collaboration delivers a unified, future-ready solution at an unprecedented scale, one designed to drive measurable outcomes by unlocking performance across CTV,” said Charlie Collier, president of Roku Media.

“With nearly half of all TV streaming time in the U.S. happening on Roku, and the power and depth of Amazon in retail and beyond, together we’re uniquely positioned to prove performance and differentiate DSP offerings for our shared advertisers and marketers.”

The integration allows Amazon DSP to recognize logged-in viewers across the Roku’s operating system and devices in the U.S., resulting in more precise reach, measurable results and greater control over ad frequency.

“We’re removing the guesswork to provide advertisers with unprecedented capabilities and delivering performance in ways that simply weren’t possible before,” said Paul Kotas, senior vice president of Amazon Ads.

ROKU Price Action: Roku shares got a significant boost from the deal, last up 9.91% at $81.78 Monday morning, according to data from Benzinga Pro.

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