How Much Does It Cost To Advertise on Roku?

Want to reach viewers who've said goodbye to cable? Roku might be exactly what you're looking for. As streaming continues to change how people watch TV, this platform has become a powerful way for brands to connect with millions of engaged viewers.

But here's the thing about advertising on Roku — it's not as simple as taking your TV commercial and running it on a streaming platform. The streaming world operates differently, with its own set of rules and opportunities. From precise audience targeting to diverse ad formats and detailed performance metrics, there's quite a bit to consider.

Whether you're taking your first steps into connected TV advertising or looking to enhance your existing strategy, understanding Roku's requirements and costs can be the difference between a campaign that soars and one that struggles to deliver results.

Let's discuss what it really takes to advertise effectively on Roku — from understanding the costs and choosing the right formats to targeting the right audience and measuring your success.

Key Takeaways

• Roku advertising offers targeted, measurable campaigns to engage streaming audiences, with CPM costs ranging from $6 to $60 based on format.
• Ad formats include in-stream video, home screen placements, branded content, and interactive ads, each influencing campaign costs and effectiveness.
• Audience targeting, campaign duration, seasonality, and ad format impact overall advertising costs and return on investment (ROI).
• Roku's high ad completion rates (95%) and advanced measurement tools help brands track engagement and optimize performance.
• Businesses can advertise through Roku Ads Manager, OneView Ad Platform, or programmatic buying, depending on budget and strategy.
• Partner with Strategus for expert-managed Roku ad campaigns that maximize engagement, ROI, and audience reach — Speak to a Strategus expert today.

Is Roku Advertising Worth it?

You might be wondering if Roku belongs in your advertising mix, especially when giants like Amazon Prime dominate the streaming landscape. The short answer? Roku packs more punch than you might think.

Let's look at the numbers: According to Nscreen Media, Roku has built an impressive audience of 83.6 million active accounts as of Q2 2024. Even more interesting is how much time these viewers spend streaming — we're talking about 30.1 billion hours, up 20% from last year. That's not just growth; that's viewers actually sticking around and engaging with content.

But what really makes Roku stand out is how they've designed their advertising experience. Instead of just dropping traditional ads into streams, they've created diverse opportunities for brands to connect with viewers. Think home screen placements that catch eyes as soon as viewers turn on their devices, or content sponsorships that feel natural and unobtrusive.

For brands looking to meet viewers where they actually spend their time, Roku makes a lot of sense. Their platform aligns perfectly with how people consume media today — through streaming services, on their own schedule, across multiple devices. 

While Roku is far from the biggest player in streaming, they've carved out a significant space that's worth paying attention to.

What is the Cost of Advertising on Roku?

The cost of advertising on Roku can vary widely, depending on the type of ad placement and targeting options chosen. Please note that the numbers mentioned here are purely just estimates and can vary greatly based on the current demand, your niche, and ad format.

Here are some common types of Roku advertising placements and their estimated costs.

1. In-Stream Video Ads: $25 to $40 CPM

In-stream video ads are commercials that play within streaming content, similar to traditional TV ads. These ads appear during movies, shows, or live streams on ad-supported channels, allowing brands to reach viewers in a lean-back environment. 

For in-stream ads on Roku, the cost per thousand impressions (CPM) typically ranges from $25 to $40. Prices can vary based on the content category, ad length, and level of targeting.

2. Home Screen Ads: $6 to $10 CPM

Home screen ads on Roku’s user interface provide a prominent placement that reaches users as soon as they turn on their Roku device. This space is valuable for brand awareness, as users encounter the ad immediately upon navigating their Roku interface. 

The cost for these ads often ranges from $6 to $10 CPM, depending on the season and demand. Given its high visibility, this option is particularly useful for broad, awareness-focused campaigns.

3. Roku Channel Sponsorships: $30 to $50 CPM

The Roku Channel, Roku’s own ad-supported streaming service, provides opportunities for brands to sponsor premium content or even specific viewing categories, like news, sports, or movies. 

Sponsorships within The Roku Channel can reach viewers on multiple devices, including smart TVs and mobile. The CPM for Roku Channel sponsorships varies but is generally within the $30 to $50 range, as it allows for more targeted exposure and often includes additional brand integrations.

4. Branded Content and Interactive Ads: $40 and $60 CPM

Roku also offers options for branded content experiences, including interactive ads that encourage viewers to engage with the brand directly. These ads can be customized with call-to-action features, allowing viewers to access additional information or promotional offers without leaving the screen. 

The CPM for interactive ads is higher, often between $40 and $60, due to the enhanced engagement and customization options.

5. Audience Targeting Options: Increases CPMs by $5 to $15

For advertisers looking to narrow their audience, Roku provides additional targeting features based on demographics, location, and viewing behavior. These targeting options add to the overall cost, often increasing CPMs by $5 to $15, depending on the level of specificity.

Overall, Roku offers a variety of ad types with flexible pricing, making it accessible for both large brands and smaller businesses seeking impactful advertising in the CTV space.

6. Getting the Most Out of Roku Advertising

While Roku offers excellent opportunities in CTV advertising, turning those opportunities into results takes more than just running ads. Success requires strategic audience targeting, smart budget optimization, and a deep understanding of the platform. This is where having an experienced partner can make all the difference.

At Strategus, we take the complexity out of Roku advertising by managing every aspect of your campaign. Our team handles everything from precise audience targeting and real-time bid management to comprehensive performance tracking. This means you can focus on your business while we ensure your advertising dollars are working effectively.

What sets our approach apart is our commitment to data-driven results. We combine premium ad inventory with sophisticated targeting capabilities and cross-device retargeting to maximize your campaign's impact. Our attribution tools provide clear visibility into how your ads are performing, helping you understand exactly what you're getting for your investment.

Ready to make Roku advertising work harder for your brand? Talk to a Strategus expert today to learn how we can help you achieve your advertising goals.

Factors That Affect Roku Advertising Costs

Before diving into a Roku advertising campaign, it's important to understand what influences your costs. Here’s a quick breakdown of the key factors that will affect your budget:

Ad Format

Think of ad formats like different TV spots — each serves a unique purpose and comes with its own price tag. Video ads typically cost more than display ads because they're more engaging and memorable. 

Want to get fancy with interactive features or branded experiences? These premium options will push your budget higher, but they can deliver impressive results when done right.

Pro tip: Match your format to your goals. Looking to build awareness? Display ads might be your best bet. Need to drive action? Video ads could be worth the extra investment.

Audience Targeting

Roku lets you zero in on exactly who sees your ads — but precision comes at a price. The more specific you get with demographics, interests, and behaviors, the higher your costs might climb. Think of it like fishing: casting a wide net is cheaper, but targeting specific fish requires more specialized equipment.

Here's a smart approach: Start broad and get more focused as you learn what works. Use Roku's measurement tools to track performance and refine your targeting over time. This way, you're investing in what actually drives results.

Campaign Duration

The duration of your campaign naturally affects your total spend. Longer campaigns need bigger budgets, but they also give you more opportunities to build recognition with your audience. Think of it like building relationships — it takes time and consistency to make a lasting impression.

Short campaigns can work too, especially for time-sensitive promotions or seasonal offers. The key is matching your campaign length to your specific goals and budget constraints.

Seasonality

Just like traditional advertising, Roku ad costs fluctuate with the seasons. Want to advertise during the Super Bowl or holiday shopping season? Expect to pay premium prices — everyone else wants those spots too. But higher costs during peak seasons often come with better visibility and engagement.

For example, one of Strategus’ past clients, a law firm, managed to gain 6,600 web conversions within the span of two months. To further boost these numbers, they switched to a live sports integration and targeted events like the March Madness and the WNBA games. This small change in strategy resulted in an 11% increase, improving web conversions to 7,400.

Smart Strategy: Consider your audience's habits and your business cycles. If your products are seasonal, it might be worth spending more during peak times. Alternatively, you might find better value advertising during quieter periods when there's less competition for ad space.

Benefits of Advertising on Roku

While the streaming advertising landscape is complex, Roku stands out by offering advertisers several distinct advantages that make it particularly effective for reaching today's viewers. Here are some key benefits that could make Roku a strategic addition to your advertising mix.

Connect with a Significant Streaming Audience 

Roku's reach extends to over 80 million active accounts worldwide, representing a substantial opportunity for advertisers. What makes this audience particularly valuable is its diversity — from demographics to interests, Roku users span a wide range of potential customers. This breadth means brands across industries can find and engage their target audience effectively.

Advanced Audience Targeting 

Roku provides sophisticated targeting capabilities that enable precise audience segmentation. The platform allows you to refine your campaigns based on:

• Demographic factors (age, income level, etc.)
• Interest patterns and behaviors
• Geographic location — down to ZIP code precision
• Device types and viewing preferences

This level of targeting helps ensure your advertising budget is directed toward the viewers most likely to engage with your brand.

Notable Ad Completion Rates 

One of Roku's standout metrics is its 95% video ad completion rate — a significant achievement in digital advertising. This success stems from several key factors:

• Non-Skippable Format: Most video ads must be viewed to completion
• Engaged Viewers: Users actively choosing their content tend to be more receptive to advertising
• Seamless Integration: Ads are designed to fit naturally within the viewing experience

Comprehensive Performance Measurement 

Roku's measurement capabilities, supported by partnerships with Nielsen, Oracle Data Cloud, and Experian, provide valuable insights into campaign performance. These tools allow you to monitor:

• Audience reach and frequency
• Cross-device attribution
• Brand lift and business outcomes

This data enables informed decision-making and helps optimize your advertising investment for better results.

How Does Roku Advertising Work?

Roku offers two main ways to advertise on its platform: the Roku Ads Manager and the OneView Ad Platform. Each option caters to different advertising needs and budgets.

Roku Ads Manager

For businesses taking their first steps into Roku advertising, the Roku Ads Manager offers a straightforward way to get started. This self-service platform makes it simple to build and manage your campaigns, giving you control over:

• Creating compelling ads — either using Roku's templates or bringing your own creative
• Defining your target audience based on who they are and what interests them
• Managing your budget and bidding strategy in real-time
• Monitoring performance and fine-tuning your approach

What makes this platform particularly appealing for small to medium-sized businesses is its accessibility — you can start with a modest budget and use an intuitive interface to handle everything yourself.

The OneView Ad Platform

For larger brands and agencies ready to take their advertising to the next level, Roku offers OneView. This premium platform provides more sophisticated tools and complete access to Roku's advertising ecosystem. With OneView, you gain the ability to:

• Expand your reach across both Roku-owned channels and partner platforms
• Tap into valuable audience insights from Roku's base of 70 million active accounts
• Access advanced measurement capabilities through both Roku's tools and third-party partners
• Fine-tune your campaigns in real time based on performance metrics

While OneView requires a larger minimum investment, it delivers the advanced features and comprehensive capabilities that sophisticated advertisers need to execute complex campaigns effectively.

Programmatic Buying

For advertisers looking to scale their campaigns efficiently, there's a third option: programmatic buying. This approach lets you purchase Roku ad inventory automatically through specialized platforms (known as DSPs and SSPs), giving you the ability to reach viewers across multiple channels and devices seamlessly.

Roku has built strong partnerships with industry leaders like The Trade Desk, Adobe Advertising Cloud, and Magnite. These relationships mean you can purchase Roku inventory alongside your other digital advertising efforts, making campaign management more streamlined and efficient.

While programmatic buying offers powerful scaling opportunities, it's worth noting that it's a more sophisticated approach. You'll need deeper technical knowledge than you would with Roku Ads Manager, and the minimum spend requirements tend to be higher. 

However, advertisers looking to get more out of their ad spend should definitely care about programmatic advertising, as it can be an extremely effective way to expand reach while maintaining precise control over your advertising strategy.

Closing Thoughts — How to Create Effective Roku Ads

Getting results from Roku advertising is like conducting an orchestra — it's not just about having the right instruments but how well they work together. Even with the best ad formats and carefully chosen audiences, campaigns need thoughtful strategy and constant fine-tuning to truly perform. Without this attention to detail, you might find yourself spending more while getting less.

This is where Strategus makes a difference. As a hands-on partner, we streamline the entire process, ensuring your campaigns connect with the right viewers and deliver measurable returns. But we go beyond just placing ads. We actively manage your campaigns using real-time data to make smart adjustments that keep performance strong.

Think of us as your dedicated Roku advertising team. We handle everything from developing your initial strategy to placing your ads, optimizing performance, and tracking results. With years of experience in connected TV advertising, we navigate the technical challenges so you can focus on what matters most — growing your business.

Looking to get the most out of your advertising budget? Get in touch with our experts at Strategus today to find out how we can help.