Roku, Amazon Team Up to Dominate CTV Ad Market

Roku
(Image credit: Roku)

NEW YORK—In a landmark agreement to overtake the burgeoning connected TV (CTV) advertising market, Amazon Ads and Roku today announced a new integration that gives advertisers access to the largest authenticated CTV footprint in the U.S. exclusively through Amazon DSP.

The new collaboration, according to the two companies, will deliver logged-in reach to an estimated 80M U.S. Connected TV (CTV) households, representing more than 80% of U.S. CTV households, according to ComScore data. The exclusive partnership will connect viewers tuned into The Roku Channel, Prime Video, and other CTV streaming services on Roku and Fire TV operating systems; as well as streaming services from Disney, Fox, Paramount, Tubi, and Warner Bros Discovery; and all premium publishers.

(Image credit: eMarketer)

Early tests of the integration showed that advertisers reached 40% more unique viewers with the same budget and reduced how often the same person saw an ad by nearly 30%, enabling advertisers to benefit from 3x more value from their ad spend, the companies claimed.

The CTV advertising market is the fastest growing segment of TV advertising, expected to top $33.5 billion in 2025; however, the majority of ads are still viewed on linear TV. Prior to the announcement, Roku already had the largest share of CTV devices on the market at 38%, more than twice that of Amazon’s Fire TV platform (18%), and far ahead of Apple (13%), Samsung (12%), LG (5%) and Vizio (5%).

But competitors are not sitting still; in April, Samsung launched its Creative Canvas interactive ad service, the first TV manufacturer to offer an in-house interactive ad format. Also in April, LG Ad Solutions announced a new integration with Amazon Publisher Services (APS) that enables marketers to access expanded advertising inventory on LG Channels, LG’s free streaming service available on all LG Smart TVs.

(Read: CTV: TV's Latest Gold Rush)

In addition to giving Roku and Amazon a leg up on competitors Google, Disney and Comcast, the companies said the joint venture will unlock an addressable CTV audience at such unprecedented scale, that it "will drive improved performance, planning, optimization, and measurement for all advertisers, further enabling CTV as a true performance solution."

“Our exclusive partnership with Roku is a giant leap for advertisers, bringing best-in-class planning, audience precision, and performance to TV advertising,” said Paul Kotas, Senior Vice President, Amazon Ads. “The collaboration enables agencies and brands that use Amazon DSP to benefit from greater efficiency and higher performance. We’re removing the guesswork to provide advertisers with unprecedented capabilities and delivering performance in ways that simply weren't possible before. By combining our technologies, advertisers can now drive full-funnel campaign outcomes—from awareness through conversion—while eliminating media waste across Amazon and Roku streaming audiences.”

The integration utilizes a custom identity resolution service, allowing Amazon DSP to recognize logged-in viewers across the Roku OS and devices in the U.S. This exclusive capability enables advertisers to reach the same viewer deterministically across different streaming channels and devices, providing more accurate audience targeting and measurement than previously possible, according to the companies.

“For years, Roku has been committed to delivering performance-driven, open, and interoperable solutions that provide visibility and accountability for advertisers. Our partnership with Amazon strengthens this mission, as Amazon DSP exemplifies these principles,” said Charlie Collier, President, Roku Media. “This collaboration delivers a unified, future-ready solution at an unprecedented scale, one designed to drive measurable outcomes by unlocking performance across CTV. 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 new solution will be available in the U.S. to all advertisers that use Amazon DSP by Q4 2025. To learn

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Tom Butts

Tom has covered the broadcast technology market for the past 25 years, including three years handling member communications for the National Association of Broadcasters followed by a year as editor of Video Technology News and DTV Business executive newsletters for Phillips Publishing. In 1999 he launched digitalbroadcasting.com for internet B2B portal Verticalnet. He is also a charter member of the CTA's Academy of Digital TV Pioneers. Since 2001, he has been editor-in-chief of TV Tech (www.tvtech.com), the leading source of news and information on broadcast and related media technology and is a frequent contributor and moderator to the brand’s Tech Leadership events.