Recently adding more third-party advertising demand-side platforms (DSPs) will significantly boost advertising revenues for streaming video platform distributor Roku, according to Guggenheim Securities.

Michael Morris, media analyst for Guggenheim, estimated gains from new expanded DSP selling platform deals will see Roku’s video advertising revenue rising 17% to $2.1 billion for the year and another 17% in 2025 to $2.5 billion.

In addition, Morris sees its “home screen” display advertising growing from more “demand from traditional media partners as well as [from] the base of non-video advertisers spending on the service.”

He says this comes from 83.6 million streaming households consuming over 30 billion hours of content during the second quarter of this year.

Morris sees overall platform revenue growth -- which advertising revenue is housed in -- climbing 14% to $3.4 billion this year and 12% higher next year to $3.8 billion.

In August, the independent demand-side advertising platform The Trade Desk inked a major deal for its open-source identity graph -- Unified ID 2.0 -- with streaming platform Roku to be used across all Roku’s premium streaming inventory.

From all of this Roku is raising its rating to a "buy" from "neutral" with a price target of $75. 

In the past, Morris believes the company Roku Channel left ad monetization on the table. For example, there was 75% audience growth on The Roku Channel (TRC) in the second quarter, but he  estimates advertising revenues only grew at a low-teens percentages.