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ROKU Partners With Shopify to Enable In-Stream Purchases on TV
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Roku (ROKU - Free Report) shares surged more than 11% on Jul 11, after the streaming platform entered into a partnership with Shopify (SHOP - Free Report) that gives viewers the option to seamlessly buy products directly from their TVs.
Per the deal, Shopify has been integrated into Roku’s Action Ads — a format meant to drive a next step down the marketing funnel. By simply pressing the OK button on the Roku remote, viewers can learn more about products featured in ads and complete their purchase without leaving the streaming experience.
Viewers will be able to check out using Roku Pay, the company’s payments platform, and resume watching their program once the transaction is processed, providing a smooth and seamless checkout experience. Viewers will also receive an email confirmation of their order from the merchant once the purchase is processed.
It’s a new milestone in the company’s ongoing partnership with Shopify, which started in 2021 after the company gave the latter's merchants access to its advertising platform.
At launch, ROKU has three Shopify merchant brands on board as initial partners for the experience, including men’s apparel brand True Classic, exercise equipment maker Ergatta and wellness brand Olly.
The announcement comes two months after Roku revealed new ad products at the 2023 IAB NewFronts presentation, including AI capability searches that match a brand’s message and place the ads in real time.
Roku Promotes Shoppable TV Experience With Action Ads
Roku’s Action Ads are classified as any advertisements on the streaming platform that provide a down funnel action, such as sending users a text, scanning a QR code or making a purchase.
The experience shortens the funnel from brand awareness to purchase, while also serving Shopify advertisers more customer data and information on purchasing trends, as well as point-of-sale access to Roku’s large streaming audience. As of the end of the first quarter, ROKU counted 71.6 million active accounts and streaming hours reached 25.1 billion.
The Zacks Consensus Estimate for second-quarter 2023 active accounts is pegged at 71.94 million, indicating an increase of 14% from the year-ago quarter’s reported figure. The consensus mark for streaming hours is pegged at 23.92 billion, suggesting an increase of 15.6% from the year-ago quarter’s reported figure.
Action ads have also been previously used by DoorDash (DASH - Free Report) in February, making it possible for DoorDash merchants to place unique click-to-order food offers within the ads seen on Roku devices and services.
The company’s partnership with Spotify follows a collaboration last year with Walmart (WMT - Free Report) that lets viewers purchase Walmart products from its platform. The agreement brings together Walmart’s unmatched ability to evaluate customer behaviors to scale commerce offerings and Roku’s purpose-built advertising tech stack.
NBCUniversal’s Peacock introduced market availability for its Must ShopTV product, an opt-in experience that brings viewers to a screen where they can browse products from shows like Top Chef and complete the purchase at that time, or later receive a mobile push notification prompting them to do so.
As for Roku and Instacart, part of the aim from that tie-up is to quantify streaming TV ads impact on e-commerce product sales for marketers, pairing Roku viewership and Instacart purchasing data. More data is part of the benefit for Shopify advertisers utilizing Action Ads.
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ROKU Partners With Shopify to Enable In-Stream Purchases on TV
Roku (ROKU - Free Report) shares surged more than 11% on Jul 11, after the streaming platform entered into a partnership with Shopify (SHOP - Free Report) that gives viewers the option to seamlessly buy products directly from their TVs.
Per the deal, Shopify has been integrated into Roku’s Action Ads — a format meant to drive a next step down the marketing funnel. By simply pressing the OK button on the Roku remote, viewers can learn more about products featured in ads and complete their purchase without leaving the streaming experience.
Viewers will be able to check out using Roku Pay, the company’s payments platform, and resume watching their program once the transaction is processed, providing a smooth and seamless checkout experience. Viewers will also receive an email confirmation of their order from the merchant once the purchase is processed.
It’s a new milestone in the company’s ongoing partnership with Shopify, which started in 2021 after the company gave the latter's merchants access to its advertising platform.
At launch, ROKU has three Shopify merchant brands on board as initial partners for the experience, including men’s apparel brand True Classic, exercise equipment maker Ergatta and wellness brand Olly.
The announcement comes two months after Roku revealed new ad products at the 2023 IAB NewFronts presentation, including AI capability searches that match a brand’s message and place the ads in real time.
Shares of this Zacks Rank #3 (Hold) company have gained 85.4% year to date compared with the Zacks Consumer Discretionary sector’s rise of 29.8% in the same time frame. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Roku, Inc. Price and Consensus
Roku, Inc. price-consensus-chart | Roku, Inc. Quote
Roku Promotes Shoppable TV Experience With Action Ads
Roku’s Action Ads are classified as any advertisements on the streaming platform that provide a down funnel action, such as sending users a text, scanning a QR code or making a purchase.
The experience shortens the funnel from brand awareness to purchase, while also serving Shopify advertisers more customer data and information on purchasing trends, as well as point-of-sale access to Roku’s large streaming audience. As of the end of the first quarter, ROKU counted 71.6 million active accounts and streaming hours reached 25.1 billion.
The Zacks Consensus Estimate for second-quarter 2023 active accounts is pegged at 71.94 million, indicating an increase of 14% from the year-ago quarter’s reported figure. The consensus mark for streaming hours is pegged at 23.92 billion, suggesting an increase of 15.6% from the year-ago quarter’s reported figure.
Action ads have also been previously used by DoorDash (DASH - Free Report) in February, making it possible for DoorDash merchants to place unique click-to-order food offers within the ads seen on Roku devices and services.
The company’s partnership with Spotify follows a collaboration last year with Walmart (WMT - Free Report) that lets viewers purchase Walmart products from its platform. The agreement brings together Walmart’s unmatched ability to evaluate customer behaviors to scale commerce offerings and Roku’s purpose-built advertising tech stack.
NBCUniversal’s Peacock introduced market availability for its Must ShopTV product, an opt-in experience that brings viewers to a screen where they can browse products from shows like Top Chef and complete the purchase at that time, or later receive a mobile push notification prompting them to do so.
As for Roku and Instacart, part of the aim from that tie-up is to quantify streaming TV ads impact on e-commerce product sales for marketers, pairing Roku viewership and Instacart purchasing data. More data is part of the benefit for Shopify advertisers utilizing Action Ads.