Roku (NASDAQ:ROKU) announced on Tuesday that it is formally aligning with The Trade Desk Inc . (NASDAQ:TTD), providing it with more data to drive greater DSP demand. Roku seeks to bolster demand to better fill its supply of ad inventory across its 81 million active accounts.
Following the news, analysts at Macquarie said in a note that they believe the deal could quicken Roku's international ambitions.
The investment firm noted that Roku has established scale in several markets outside the US. They believe that The Trade Desk, with its global presence, can help the company to monetize its ad inventory.
The deal was described as a potentially serious needle-mover for Roku, which has grown its streaming hours faster than its platform revenue growth for the last seven quarters.
Macquarie said Roku has "had its struggles with ad sales in a market that ironically remains reliant on insertion orders, as this is how advertisers have historically bought linear TV ads." However, they believe this is now changing.
"Roku's advertising fill rate is only ~50%, meaning it is looking for more sources of demand. The Trade Desk (and other DSPs) should bring more demand to fill its supply more effectively than its ad sales team and its own sub-scale DataXu DSP can do," added Macquarie.