Roku Reports Strong Growth in Video Ad Revenue
Roku has announced a significant surge in its video advertising business, claiming its growth is outpacing the broader over-the-top (OTT) and digital ad markets in the U.S. The company reported an 18% year-over-year increase in platform revenue, reaching a record $1.22 billion in Q4 2025. For the full year, platform revenue also rose 18%, totaling $4.15 billion. This growth has been largely driven by increased momentum in video advertising and streaming distribution.
According to Roku’s earnings statement, the platform’s advertising performance has been buoyed by the ongoing shift of advertising dollars from traditional linear TV to streaming platforms. “There’s still a lot of ad dollars in the traditional linear ecosystem that are moving to streaming,” said Roku CEO Anthony Wood during a call with investors. “We’re taking more than our fair share of those dollars.”
Leading the Streaming Market
Roku continues to dominate as the top streaming TV platform in the U.S., Canada, and Mexico, based on hours streamed, according to findings from the Hypothesis Group. Roku operates both as a media distributor and as a content provider through its own ad-supported Roku Channel.
The company’s leadership in the streaming space has supported strong performance in advertising, especially through its self-service Ads Manager platform, which targets small- and mid-sized businesses (SMBs). A recent campaign by hair care brand LolaVie, owned by Jennifer Aniston, utilized Roku Ads Manager for its first TV campaign and reported a 40% increase in sales, demonstrating the platform’s effectiveness.
AI Tools Driving SMB Engagement
Roku sees generative artificial intelligence (AI) as a key driver of future advertising growth. The company has integrated AI tools into its Ads Manager, making it more accessible to SMBs. Roku has also partnered with Spaceback, a company that converts social video content into TV ads, to further enhance the platform’s capabilities.
“AI is opening up an entirely new market of small and medium-sized businesses,” said Wood. “This is a segment of the ad business that was previously not accessible to TV platforms but is now thanks to AI.”
The potential is significant. According to a report by Intuit, SMBs were expected to spend up to $640 billion on advertising in 2025, highlighting the vast opportunity for platforms like Roku’s Ads Manager.
Early Stages of Amazon Ads Partnership
Roku has also been strengthening its ad-tech partnerships, most notably through a major deal with Amazon Ads. This collaboration aims to provide the largest authenticated connected TV (CTV) audience footprint in the U.S. While still in the “early innings,” Roku executives see the Amazon partnership as a critical component of their broader strategy to boost marketing performance and industry operability.
“Specific to Amazon, as the Amazon DSP grows and succeeds—which we believe it will—we’ll be successful along with it,” said Roku CFO and Chief Operating Officer Dan Jedda.
In addition to Amazon, Roku collaborates with other key players in the advertising space, including Yahoo DSP, The Trade Desk, AppLovin, Wurl, and Magnite. These partnerships are helping Roku enhance its advertising ecosystem and maintain its competitive edge in the fast-evolving streaming market.
Looking Ahead
Roku’s strong financial performance and strategic investments in AI and partnerships signal continued momentum in its advertising business. As more advertisers shift their focus from traditional TV to streaming, Roku is well-positioned to capture a substantial share of the market.
With advancements in its Ads Manager platform and a growing roster of strategic alliances, Roku is set to further solidify its position as a leader in the connected TV advertising space.
This article is inspired by content from Original Source. It has been rephrased for originality. Images are credited to the original source.