Roku shares surged more than 9% in trading Monday after the streaming platform announced a landmark, exclusive partnership with Amazon Ads, a move that promises to reshape the landscape of connected TV (CTV) advertising.
The collaboration creates the largest authenticated CTV network in the United States, giving marketers a powerful new way to reach a vast and engaged audience and sending a clear signal of Roku’s competitive strength.
Under the terms of the deal, advertisers will now exclusively use Amazon’s Demand-Side Platform (DSP) to access a combined, logged-in audience of an estimated 80 million U.S. households, which represents over 80% of the nation’s total CTV market.
The partnership enhances ad targeting and measurement capabilities across major streaming apps on Roku and Amazon Fire TV devices, including The Roku Channel, Prime Video, and third-party services like Disney, Paramount, and Warner Bros. Discovery.
The alliance is set to deliver significant advantages for advertisers by leveraging a custom identity resolution service to recognize viewers across different platforms. Early tests of the integration have already produced impressive results, with advertisers reaching 40% more unique viewers without increasing their budgets.
The system also reduced ad frequency by nearly 30%, drastically improving media efficiency and viewer experience. Paul Kotas, Senior Vice President at Amazon Ads, described the partnership as a “giant leap for advertisers,” enabling them to drive “full-funnel campaign outcomes—from awareness through conversion.”
Wall Street responded with immediate enthusiasm, sending Roku’s stock up as much as 13% at one point during the session. Analysts noted that the partnership directly counters the bearish argument that Amazon’s advertising growth would come at Roku’s expense. Instead, the deal solidifies Roku’s central role in the streaming ecosystem and provides a powerful new revenue stream, offering a significant boost for the company after a challenging year.
