Roku (ROKU) shares jumped over 11% on Tuesday after the streaming platform entered into a partnership with Shopify (SHOP) that gives viewers the ability to seamlessly purchase products directly from their TV.
Key Points to Remember
- Roku shares jumped more than 11% on Tuesday after the TV streaming provider said it was offering viewers the ability to purchase products from Shopify merchants directly from their TV.
- Viewers will be able to pay using Roku Pay, the company's payment platform, and resume watching their program once the transaction has been processed.
- This is 39;a new step in Roku's ongoing partnership with Shopify, which began in 2021 after the company gave access to its advertising platform to the latter's merchants.
Customers will be able to make purchases through Roku Action Ads. Roku's advertisements on its streaming devices offer users a set of interactive choices, including sending a text message, scanning a QR code, or performing a purchase. With this new development in their partnership with Shopify, viewers can simply click “OK” on their remote to learn more about the product and buy it directly on their TV.
Viewers will be able to pay using Roku Pay, the company's payment platform, and resume viewing their program once the transaction has been processed, providing a smooth and seamless payment experience.
Menswear brand True Classic, exercise equipment maker Ergatta and wellness brand Olly are just a few of the Shopify merchants that have signed up as initial partners.
'Roku is democratizing access to TV advertising, and now we're collapsing the funnel for Shopify merchants,' said Roku's Senior Director of Advertising Innovation, Peter Hamilton, noting that the company is “uniquely positioned to make advertisers compelling throughout the streamer's journey.”
This is a next step in Roku's ongoing partnership with Shopify, which began in September 2021 after the company gave the latter's merchants access to its advertising platform.
Roku shares doubled numbers on Tuesday and are up 67% so far this year. Shopify shares are up 2% and are up 78% YTD.
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