Streaming video platform Roku (ROKU) doubled its spending commitments from advertisers during this year’s upfront ad sales. Roku stock was near a buy point on the news.
Roku’s ad-selling season was stronger than anticipated, Alison Levin, Roku vice president of ad revenue and marketing solutions, told Adweek. The company doubled its upfront spending commitments over 2020 and completed the process a quarter earlier than in past years, she said. It did not disclose dollar figures or an advertiser tally.
First-time advertisers made up 42% of Roku’s upfront commitments this year, Levin told Adweek. She noted that Roku’s retention rate with upfront advertisers is over 95%.
Advertisers were particularly interested in buying commercials around Roku Originals, including shows that Roku acquired from Quibi, according to Broadcasting & Cable. Another Roku Original is “The Demi Lovato Show,” a talk show premiering July 30.
Roku Stock Forms Cup-With-Handle Base
In afternoon trading on the stock market today, Roku stock dropped 1.4%, near 427.20. On Monday, it rose 0.4% amid reports of its successful ad-sales season.
On Monday, KeyBanc Capital Markets analyst Justin Patterson reiterated his overweight, or buy, rating on Roku with a price target of 460.
“We are encouraged by signs of brand affinity and The Roku Channel traction, as both portend long-term account and revenue growth,” he said in a note to clients.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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