The leader in digital advertising could offer generous rewards to its shareholders. In recent months, Roku has the opportunity to profit from the fact that more and more consumers are abandoning cable TV packages for entertainment offerings delivered over the Internet.

Here are two reasons why you should invest in this company.

1 The connected TV market is about to explode by Roku

According to Roku management, the company is basing itself on a future forecast: the TV market is rapidly moving in the direction of streaming and the advertising market will follow suit. This is why: 85% of US households have at least one internet-connected TV, according to Ark Invest.

However, the connected TV (CTV) advertising market currently represents only about a quarter of total US TV advertising spend. Ark Invest analysts expect this gap to narrow as companies shift their marketing investments from traditional TV services to streaming services.

These trends are favorable for Roku and are already contributing to its growth. Advertising dollars follow viewers, so marketers are shifting their spending to Roku’s advertising network. The company’s platform revenue, which includes advertising sales, increased 20% to $2.7 billion last year. Roku has gained market share, surpassing both the traditional TV advertising market and the overall advertising market in the United States.

New products and partnerships should fuel Roku’s expansion

Roku already owns the best-selling smart TV operating system in the United States, where its 38% market share surpasses that of its two closest competitors combined. Additionally, Roku is launching its own line of smart TVs to capture an even bigger slice of the market.

Its plan is to offer a premium consumer experience by integrating its world-class streaming software with innovative hardware features, such as voice-controlled remotes and premium audio systems. It’s a bold strategy that could help the company grow even further.