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Blu Dot surpasses 2,000% ROAS with self-serve CTV ads
Home furniture brand Blu Dot blew up on CTV with help from Roku Ads Manager. Here’s how:
After a test campaign reached 211,000 households and achieved 1,010% ROAS, the brand went all in to promote its annual sales event. It removed age and income constraints to expand reach and shifted budget to custom audiences and retargeting, where intent was strongest.
The results speak for themselves. As Blu Dot increased their investment by 10x, ROAS jumped to 2,308% and more page-view conversions surpassed 50,000.
“For CTV campaigns, Roku has been a top performer,” said Claire Folkestad, Paid Media Strategist, Blu Dot. “Comping to our other platforms, we have seen really strong ROAS… and highly efficient CPMs, lower than any other CTV partner we've worked with.”
Using Roku Ads Manager, the campaign moved from a pilot to a permanent performance engine for the brand.
Good morning. Today is inflation day: the September CPI report lands at 8:30 AM ET, and Bank of America, Morgan Stanley and chip-equipment maker ASML all report before the open.
The Market Gauge
Stocks finished Tuesday a touch lower. The S&P 500 slipped 1.79 points (0.02%) to 7,805.45, the Nasdaq dipped 0.15% to 27,204.38, and the Dow fell 180 points (0.35%) to 51,670.10.
The Dow had been up as much as 0.9% in the morning, then faded as JPMorgan, Goldman Sachs and UnitedHealth gave back early post-earnings gains and Johnson & Johnson fell. Memory-chip stocks weighed on tech: Micron dropped 3.6% and closed below its 50-day moving average. Meta Platforms rose 2.6% and helped hold up the big indexes. The small-cap Russell 2000 lost 0.4% and closed below its 200-day moving average for the first time since March 30. The 10-year Treasury yield eased three basis points to 5.22%, and U.S. crude rose 0.4% to $94.14 a barrel.
IBD's read: the S&P 500 and Nasdaq sit just below record highs, but the Dow and small caps look weaker. Leadership is narrow, so be selective. Megacaps, energy and some software names are working; chip stocks are not, and IBD says chip-focused investors should have moved mostly to cash in recent sessions.
Beginner note: The 200-day moving average is the average of a stock or index's last 200 daily closes, a common gauge of the long-term trend. One close below it is a warning to watch, not a signal that a crash has started.
On today's calendar
September CPI, 8:30 AM ET. The Consumer Price Index measures how fast everyday prices are rising. Economists expect prices rose 0.6% from August, pushed up by energy, and core prices (which leave out food and energy) are seen up 0.2%. A hotter number could lift Treasury yields, which tends to pressure growth stocks.
Bank of America and Morgan Stanley, before the open. Bank of America releases results around 6:45 AM ET with a call at 8:30 AM ET; Morgan Stanley follows around 7:30 AM ET with a call at 9:30 AM ET. Bank results are a read on borrowing, deal-making and the health of consumers. Tuesday's bank reports fizzled after early gains, so watch whether these two hold up.
ASML third-quarter results, before the U.S. open. ASML builds the machines chipmakers use to print the smallest circuits on silicon. Chip-equipment stocks fell more than 4% as a group Tuesday, so its outlook could set the tone for semiconductors.
Coming Thursday. Retail sales, producer prices (PPI), jobless claims and two regional factory surveys all arrive at 8:30 AM ET.
On the radar: Cheesecake Factory
$CAKE ( ▼ 1.71% ) The Cheesecake Factory runs the full-service restaurant chain of the same name along with several other restaurant brands. The stock rose 3.09% Tuesday to 112.37, its third straight gain, and moved past a 111 entry in a six-session handle, according to IBD. That puts it about 1.2% above the buy point, inside a 5% buy zone that runs to about 116.55. The base's left-side peak, and the 52-week high, is 118.46, about 5% overhead. Shares are up more than 121% this year and carry a 98 Relative Strength Rating. Volume came in about 10% below its average, and the next earnings report is October 27.
Why it's worth watching: Restaurant stocks as a group rank 132nd out of 142 industries for six-month price performance, yet Cheesecake Factory is one of the strongest stocks in the market. A leader that rises while its group lags is showing real demand for its shares. Two cautions belong in the same breath: a breakout on below-average volume shows less conviction from big investors, and earnings in under two weeks can move the stock sharply either way.
How useful was today's Before the Bell?
ONE FOR THE ROAD
When a stock is the strongest name in a weak industry group, do you see that as a plus or a warning sign, and why?
Educational content only. Not financial advice. Past performance does not predict future results. Read the full financial disclosure.
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