Roku's Sustained Stock Performance: A Long-Term Bet on the Streaming Advertising Boom

The streaming advertising market is undergoing a seismic shift, and Roku (NASDAQ: ROKU) is emerging as a key beneficiary of this transformation. With the global streaming advertising market projected to grow from $41.8 billion in 2025 to $687.8 billion by 2035 at a compound annual growth rate (CAGR) of 18.66%, according to a Business Research Insights forecast, Roku's strategic positioning in the ad-supported streaming (FAST) ecosystem and its innovative monetization tools position it as a compelling long-term investment.

A Market in Motion: The Rise of Streaming Advertising

The shift from traditional TV to digital platforms has accelerated, driven by rising internet penetration, smartphone adoption, and consumer demand for personalized content. According to Precedence Research, the global video streaming market is expected to expand from $129.8 billion in 2024 to $865.85 billion by 2034, growing at a CAGR of 20.90%. Within this, the live streaming segment alone is projected to reach $345 billion by 2030, per Precedence Research.

Connected TV advertising, a subset of this market, is particularly dynamic. GroupM forecasts streaming TV ad revenue to grow by 19.3% in 2025, as reported in a GroupM forecast, while dentsu's global ad spend report highlights an 18.4% surge in connected TV advertising due to the rise of ad-supported streaming platforms. These trends underscore a broader industry shift: advertisers are reallocating budgets to platforms that offer precise targeting and measurable engagement.

Roku's Competitive Edge: Monetizing the Streaming Revolution

Roku has capitalized on this shift with a dual strategy of expanding its user base and enhancing its ad-tech ecosystem. In Q2 2025, the company reported platform revenue of $975 million, an 18% year-over-year increase, with advertising revenue growing faster than overall platform revenue, according to a Yahoo Finance report. This outperformance is driven by innovations such as AI-powered personalized content rows on the Home Screen, which engage over a third of U.S. streaming households monthly, per the same Yahoo Finance report.

The Roku Channel, now the second-most-used app on the platform in the U.S., accounts for 5.4% of total streaming time in June 2025, and streaming hours on the platform surged to 35.4 billion in Q2 2025, fueled by live sports programming and improved content discovery tools, as noted in the Yahoo Finance report. Meanwhile, partnerships with Adobe and INCRMNTAL have enhanced advertiser targeting and campaign measurement, while tools like Roku Ads Manager and Spaceback have democratized TV advertising for small and medium-sized businesses, according to the same reporting.

Roku's market share in the Broadcasting Media & Cable TV industry stands at 1.96% in Q2 2025, up from 1.88% in Q1, based on CSIMarket data. While this pales in comparison to giants like Netflix and Disney, Roku's focus on ad-supported models differentiates it in a landscape where subscription fatigue is growing. The company's FAST channels, bolstered by acquisitions like Frndly TV, are expanding ad inventory and monetization opportunities, according to a FinancialContent analysis.

Long-Term Catalysts: Scaling Revenue and Profitability

Roku's long-term growth is underpinned by its aggressive international expansion and technological innovation. The company aims to reach 100 million streaming households globally by year-end 2025, up from 90 million, per CSIMarket data, with international markets like Canada, the UK, and Latin America offering untapped monetization potential. Analysts project platform revenue to grow at a 13.22% CAGR from 2025 to 2029, driven by deeper integrations with demand-side platforms (DSPs) like Trade Desk and Amazon, as highlighted in FinancialContent's deep-dive coverage.

Management has also signaled confidence in achieving operating income positivity by 2026 through cost discipline and scaling its ad-tech stack, according to Yahoo Finance. For 2025, Roku forecasts platform revenue growth of 12% and EBITDA of $350 million, exceeding analyst estimates cited by CSIMarket. Excluding political advertising-a volatile segment-revenue growth could hit 15%, the CSIMarket data suggests.

Risks and Realities

Despite its momentum, Roku faces challenges. The OTT advertising market is highly competitive, with rivals like YouTube and Disney's ad-supported tiers capturing significant market share. Additionally, macroeconomic headwinds, such as ad spend volatility during economic downturns, could impact growth. However, Roku's focus on small-business advertisers and its low-cost ad tools mitigate some of these risks by broadening its customer base.

Conclusion: A Streaming Advertising Powerhouse

Roku's ability to outpace the broader OTT advertising market-projected to grow at a 10.3% CAGR through 2029 per Precedence Research-highlights its unique value proposition. With a robust pipeline of product innovations, a scalable international strategy, and a growing share of streaming hours, Roku is well-positioned to benefit from the $687.8 billion streaming advertising market by 2035, as outlined in the Business Research Insights forecast. For investors seeking exposure to the next phase of the digital advertising revolution, Roku offers a compelling blend of growth and innovation.