Connected TV 5 Min Read

SteelHouse CEO Mark Douglas Weighs in on Roku, Connected TV Ad Growth

Written by Tim Edmundson

Connected TV Ad Revenues Are Growing

Whether it’s the devices or the ad business, Connected TV is continuing to make headlines. Roku has been a standout performer in the Connected TV space – and for good reason. It’s the number one device used for streaming, and importantly, its ad business is continuing to grow at a strong pace. 

“Our [Connected TV] ad business at SteelHouse grew 423% this year,” said SteelHouse CEO Mark Douglas. “We’re spending a lot of money with Roku.” Spending like this is part of the reason why analysts are predicting strong growth, and why advertisers should be eager to get their ads on Connected TV.

Read the Transcript

Stuart Varney: We have with us today Mr. Douglas —Mr. Douglas. That’s right. Mark Douglas. There you are. Mark, how are you? I forgot your first name.

Mark Douglas: It’s okay. You’re not the first.

Stuart Varney: (Laughs) I’m sorry about that. Look, the analyst on the show yesterday said, “Look, this Roku is the pure play in streaming. That’s why it’s going to go up so much.” What do you say about that?”              

Mark Douglas: He’s right on that.

Stuart Varney: It’s a she.

Mark Douglas: Sorry.

Stuart Varney: It’s a lady.

Mark Douglas: She’s right, she’s right on that. Roku’s an interesting company. A lot of people don’t know, it’s a spin-off of Netflix. Netflix actually created Roku and then spun it out because they didn’t want to own the device.

Stuart Varney: You’re kidding.                

Mark Douglas: No. So that’s where it started. And it’s pure play. The, the, it’s a roller coaster ride. Started the year at 35 dollars a share, peaked at 175, it’s at 150 now, and it’s predicted to go to 200. The interesting thing about the company is they have two businesses. They have the device business. They’re competing with Apple, Amazon, all these other streaming dice — device manufacturers. People are always nervous about that. And then they have an ads business.

Mark Douglas: Our ad business at SteelHouse, we grew 423 percent this year. And we’re a big partner with Roku, so they’re getting a lot of that [money].

Stuart Varney: Oh, you’ve got a piece of this action. I didn’t know that.

Mark Douglas: No, but we’re, we’re spending a lot of money with Roku. So, look, it is a pure play in streaming, but with that kind of fluctuation in the stock, you have to strap in with the stock.

Stuart Varney: Yeah, but, I’m still fascinated by disrupting companies.

Mark Douglas: Yeah.

Stuart Varney: We just had Uber, and then you’ve got Roku —

Mark Douglas: Yeah.

Stuart Varney: But I want to — I’m going to go completely off the plantation here. How — I want to ask you about Peloton.

Mark Douglas: Yeah.

Stuart Varney: Did the stock really drop because that ad was deemed — it’s on the screen now.          

Mark Douglas: Yeah.

Stuart Varney: Because that ad was deemed to be sexist.

Mark Douglas: Yeah.

Stuart Varney: Is that what took the stock down 10 percent?

Mark Douglas: Yeah. That, see — is the power of social media. That seems to be what did it. The interesting thing is that a lot of people exercise and film themselves, and put it on social media. Peloton makes an ad portraying that, and now people on social media are angry at the company for doing that. I think it’ll — you know, they’ll get past that. Their stock’s already rebounding. And, and —

Stuart Varney: I would hope they get past it.

Mark Douglas: Yeah.

Stuart Varney: Because I want to know, what is an acceptable present for a husband to give to a wife in this day and age?

Mark Douglas: Well, I think —

Stuart Varney: Am I on dangerous ground here?

Mark Douglas: My girlfriend asked me to buy her a Peloton this year. So…

Stuart Varney: Oh. Something else I didn’t know. You’ve got a piece of Roku, your girlfriend wants a Peloton.

Mark Douglas: Hey, I recommend the products I like. So —

Stuart Varney: Mr. Douglas.

Mark Douglas: I think both companies are great stocks and people should own them. Roku, just be ready to sell at a moment’s notice. It’s a roller coaster ride.

Stuart Varney: Okay. It’s fascinating. What a day we’ve had so far. And we’re only 21 minutes into the show. Mark Douglas, thank you, sir. Always appreciate it.

Mark Douglas: Thank you.

Stuart Varney: Thanks very much.