What you need to know
- Roku's CEO Anthony Wood stated during a Q1 earnings call that the company is looking to introduce more video ads on the home screen.
- Wood said there are plans to bring "other types" of video ad units to the home screen, which are in testing, alongside new experiences for ads.
- Roku was also spotted filing a patent earlier in April, which involved overlaying ads on a user's device through HDMI.
Roku is preparing to introduce more video-based ads to its home screen, and this could be due to its first-quarter performance.
According to Cord Cutter News, the company's CEO, Anthony Wood, discussed introducing more video ads during a Q1 earnings call. The question dealt with how Roku plans to deal with ad revenue moving into the second quarter of 2024.
Wood stated, "But to give you some examples of the kinds of things we're looking at on the home screen, on the home screen today, there's the premier video app we called the Marquee and that traditionally has been a static ad. We're going to add video to that ad."
He added that this will be "the first video ad in that we add to the home screen. That will be a big change for us."
Roku's CEO teases that the company is testing "other types" of video ads. It's unclear what these additional ad units could look like, but we'll likely find out once they arrive. Additionally, Wood states Roku is interested in bringing new experiences for users on the home screen, which still pertains to advertising.
The company wants to "innovate" its video ad space moving forward through its home screen approach. There's speculation that Roku is moving in this direction due to its lackluster Q1 2024 performance. The company reportedly lost revenue despite picking up 1.6 million new users.
Interestingly, Roku's decision to inject more video ads into its home screen comes a few weeks after a curious patent was discovered. Lowpass discovered a Roku patent that involves the company displaying ads over devices users have connected to their TVs via HDMI. This seemingly applies to Roku TV owners, and the ads would only appear during breaks in gaming sessions and more.
Earlier this month, Roku pushed an update to help improve users' experience with its software. The patch included Roku smart picture, which will adjust your TV depending on what you're watching, alongside IMDB ratings and trailers. Additionally, Backdrop lets users turn their TVs into digital photo albums, as well as a selection of art pieces.
