The connected TV (CTV) market is undergoing a major transformation, with hardware manufacturers shifting their focus from device sales to platform-based revenues. Leading the charge is Roku, which is emerging as a dominant player in the CTV advertising landscape, according to Omdia report.
Roku’s strategic decision to prioritize platform revenues over hardware profits has put it at the forefront of the CTV advertising industry. By 2029, Roku is projected to generate an impressive $5 billion in revenue, driven by Free Ad-Supported Streaming TV (FAST), ads on CTV user interfaces, and a share of third-party inventory. This shift comes as the CTV advertising market overall is expected to more than double, growing from $6.65 billion in 2024 to $13.5 billion in 2029.
One key factor behind Roku’s projected success is its massive footprint in the U.S. market, where 20 percent of all TV sets are powered by its platform. With the U.S. being the largest advertising market in the world, Roku is well-positioned to capitalize on its established dominance and serve as a benchmark for competitors.
“Roku’s success is driven by its position as the largest platform in the top advertising market,” commented Maria Rua Aguete, Senior Research Director at Omdia’s Media and Entertainment practice. This market positioning gives Roku a significant edge over its competitors as the CTV advertising space continues to expand rapidly.
While Roku is leading the pack, Samsung is close behind as the second-largest player in the CTV market. Samsung is expected to more than double its advertising revenues by 2029, reaching $3 billion, largely thanks to its global reach and brand recognition. However, despite Samsung’s international presence, Roku’s dominance in the U.S. gives it a competitive advantage that will likely sustain its lead.
Meanwhile, Walmart’s acquisition of Vizio highlights a shift in strategy as companies look to diversify revenue streams. Walmart plans to capitalize on retail media and explore shoppable TV, marking a potential shift in the competitive landscape that could challenge Roku and Samsung.
As the connected TV advertising market continues to grow, Roku’s platform-first approach positions it as a key player driving the industry forward. With revenues projected to soar in the coming years, Roku is set to dominate the connected TV advertising space, solidifying its place as the leader in a rapidly expanding market.
Baburajan Kizhakedath
