Roku's New Ad Format Spark User Backlash
How far is too far?
Digital ads have become an integral part of the streaming world. After all, most free streaming services, such as Tubi and YouTube, make the majority of their revenue from ads.
However, as one of the leading streaming device platforms with millions of users, Roku has found itself at the center of controversy with its latest advertising approach.
The company recently began testing auto-playing video ads that appear before users even reach the home screen of their Roku devices. Imagine turning on your TV only to be greeted by an unsolicited video ad for "Moana 2" before you can access your favorite streaming services.
Many people have noticed this newly tested ad approach on their Roku devices, while some have yet to experience it. Regardless, the intrusive approach has sparked outrage among Roku users, rightfully so, I might add.
As a result, many users expressed their frustration on Reddit and Roku's community forums.
As expected, Roku defended the move as a test to explore new revenue streams. It also mentioned that a "close" button is included so users can dismiss the ads quickly, but users claim they couldn't find it.
Additionally, the company stated that continuous testing is necessary to deliver value to its growing base of 90 million TV streaming households while maintaining a simple user experience.
But this is not Roku's first run in the pack. In 2023, the company started placing ad units on the home screens of Roku platforms, including TVs and streaming devices, to reach ad-free viewers.
Apart from Roku, other streaming platforms have also had their fair share of poorly received ad approaches. I remember last year when Amazon turned its Fire TV streaming device's "Ambient Experience" screen saver into a glorious ad board.
Nonetheless, not every streaming service gets the whole advertisement thing wrong. Over in the streaming service world, Netflix introduced an ad-supported tier priced at $6.99 monthly, attracting 70 million monthly active users globally.
In fact, about 50% of new Netflix sign-ups are for the ad-supported tier in regions that offer the option.
That being said, Roku now faces the challenge of regaining user confidence while exploring advertising models that don't compromise the core experience that made it a market leader.
Techloy
