Roku Plans to Flood Streaming with AI‑Generated Ads for Small Businesses
Key Points
- Roku aims to expand its ad ecosystem from a few hundred to hundreds of thousands of advertisers.
- Generative AI will be embedded in Roku’s self‑serve platform to let small businesses create TV ads quickly.
- The strategy targets the small‑and‑medium‑sized business market, traditionally underserved in connected‑TV advertising.
- Roku’s growing user base provides ample ad inventory, but a portion of that inventory remains unsold.
- Competitors like Magnite are also investing in AI‑driven ad creation tools, intensifying market competition.
- Roku plans dedicated sales teams and marketing campaigns to attract local advertisers.
- The push could democratize TV advertising, allowing local shops to reach viewers alongside major brands.
Roku executives say the company will dramatically widen its advertising ecosystem by tapping generative AI to enable thousands of small and medium‑sized businesses to create and place TV ads on its platform. The strategy moves beyond the traditional top advertisers, aiming to bring hundreds of thousands of new brands to streaming. Roku’s self‑serve tools, powered by AI, promise rapid ad creation, while competitors such as Magnite are also expanding AI‑driven ad solutions. The push could reshape how local businesses reach viewers on connected‑TV devices.
Roku’s Advertising Vision
Roku’s chief financial and operating officer, Dan Jedda, outlined an ambitious plan to reshape the streaming advertising landscape. Rather than focusing solely on a limited set of large advertisers, the company intends to open its platform to a vastly larger pool of brands, including many that have historically been excluded from connected‑TV advertising.
Expanding the Advertiser Base
Roku’s leadership highlighted that the future of streaming ads will involve not just the top few hundred advertisers but potentially hundreds of thousands of new participants. By increasing the supply of ad inventory through its growing user base, Roku aims to attract a broader range of businesses that want to reach viewers on smart TVs and streaming devices.
AI Tools for Small Businesses
A key component of the strategy is the integration of generative‑AI technology into Roku’s self‑serve advertising platform. This AI capability allows small and medium‑sized businesses to produce polished video commercials quickly, reducing the traditional barriers of cost and production time. The tools enable advertisers to be “up and running within minutes,” according to Roku’s executive.
Market Impact and Competition
The move comes as other ad technology firms also explore AI‑driven solutions. Digital advertising company Magnite recently acquired a startup called Streamr, which offers generative‑AI services that help businesses create their own TV ads. Roku acknowledges that multiple players will vie for the attention of small and local advertisers, each offering AI‑enhanced creation and placement capabilities.
Roku’s Reach and Growth
Roku’s platform already commands a significant share of U.S. TV viewing, with a majority of broadband households using Roku devices. The company’s own streaming channel has seen substantial growth in viewing hours, providing a large pool of video inventory for advertisers. However, Roku noted that while supply has expanded rapidly, ad sales have not kept pace, leaving a sizable portion of inventory unsold.
Future Outlook
Roku plans to address the sales gap by actively courting small and local businesses, offering dedicated sales teams and targeted marketing campaigns. By lowering the production barrier with AI and simplifying the buying process through self‑serve tools, Roku expects to bring a significant share of the SMB advertising market onto its platform. The initiative signals a shift toward a more democratized advertising ecosystem on connected‑TV, where even the smallest brands can appear alongside larger advertisers.