3 key takeaways for advertisers from Roku at CES 2023

It’s no coincidence that the most influential tech event in the world occurs right after the New Year. Every January, the Consumer Electronics Show gives our industry a chance to reflect on our successes, set new goals, determine KPIs, and build excitement for the year to come.

Here at Roku, we see CES as a forum for sharing insights about our area of expertise: TV streaming. This year at CES, we explained that TV viewing behaviors are shifting dramatically — and brands must transform their marketing strategies to stay ahead.

Here are three key takeaways from our CES sessions.

1. Reinvent your marketing strategies to meet consumers where they are.

It’s no secret that consumers have migrated to new platforms. Getting their attention requires a reinvention of marketing techniques and a reallocation of advertising dollars. Take TV streaming for example. While cable dominated just a few short years ago, streaming viewership is now trending upwards, having exceeded traditional TV for the first time in July 2022.¹ Streaming is now mainstream.

Marketers now have an opportunity to update their strategies and budget allocations to match changing consumer behaviors. For some, this will require calculating return-on-investment for emerging marketing channels like streaming TV.

To help support this transformation and maximize your marketing impact, consider working with TV streaming providers who have helped companies enter the market, acquire new customers, and grow lifetime value. A proven track record of success will not only lead to better ROI, it will help get buy-in from executives on your team who may still be wary of emerging marketing channels.

"Marketers have to go where the media consumption is,” Rachel Helfman, Roku’s Director, Creative Ad Solutions, stated on a MediaLink panel on the future of streaming. “Marketers have to be willing to try something new and find partners they can trust to make recommendations that will help them succeed."

2. The future of streaming is ad-supported.

A growing group of consumers will happily watch ads in exchange for free or lower priced TV streaming subscriptions. Some are fed up with the high combined cost of their streaming services. Others have been waiting for more affordable ways to finally watch popular shows. This sentiment has led top streaming platforms to offer ad-supported monthly subscription plans at reduced prices.

Meanwhile, existing free ad-supported TV options are exploding in growth. Pluto TV, for example, went from $210 million in revenue in 2019 to more than $1 billion in 2022. And The Roku Channel is a top five channel on the Roku platform.²

With Netflix and Disney joining the fray, inflationary economic times, and a looming recession — the ad-supported trend will only accelerate. Full-price subscriptions won’t go away, but Roku data shows that ad-supported streaming is growing at 1.5x the rate of subscription streaming services.³ Tiering of subscription streaming services into ad-supported and ad-free services will accelerate this timeline, allowing advertisers to access new audiences that weren’t available on linear TV.

3. Brands will be instrumental in creating better TV experiences.

“In the future, TV streaming will be all about discoverability, simplicity, and inclusivity. TV will be easier and more convenient than it has ever been before.” - Dan Robbins, VP, Ad Sales Marketing & Partner Solutions at Roku said on a Digital Hollywood panel.

Getting there isn’t just the responsibility of TV streaming platforms and content creators — but advertisers too. At CES, we offered a glimpse into how brands can drive this transformation.

1. Make TV more discoverable: According to Nielsen, the average streamer spends over seven minutes per day deciding what to watch. Advertisers can provide value to streamers by helping them with this decision. On platforms like Roku, brands can even create their own Editorial Guide or be a part of an original show like Roku Recommends.
2. Simplify the path to purchase: With TV streaming, brands can leverage new tech tools to making it easier for streamers to convert. Whether it’s by scanning a QR code for a coupon or allowing viewers to purchase items directly from their TV, brands have a growing arsenal of tools to make product discovery and purchase simple.
3. Promote inclusivity: Two out of three Americans say social values shape their shopping choices. Consumers are more discerning about the businesses they choose to support and demand more inclusivity. Brands need to be a part of the conversation. For example, brands can empower diverse storytellers on TV streaming by creating new formats that empower creators from underrepresented communities. One recent example is Jägermeister, which sponsored the Lesbian Bar Project, a show chronicling the last remaining lesbian bars in the United States.

With CES finished for 2023, it’s now time for marketers to set their intentions for the year. If you’re open to re-invention and dedicated to meeting consumers where they are, you will be rewarded.

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¹ Nielsen, 2022 

² By both reach and streaming hour engagement in the U.S 

³ Roku and ACR data, 2021-2022; Roku OTT streaming data (for AVOD and SVOD) and ACR data to establish baseline growth for linear TV viewing .