The trade desk1/7/2023 The Trade Desk is positioning itself as an alternative to the “walled gardens” of Facebook, Google and Amazon, the three top digital ad platforms in terms of revenue in the U.S. It's worth noting that the second quarter of 2020 was in the midst of the COVID-19 pandemuc, when many brands drastically reduced marketing budgets. The Trade Desk said it expected third quarter revenue to hit $282 million, up from $216 million in the third quarter of 2020. The Trade Desk does not expect the same revenue growth in the third quarter as it experienced in the second, however. “We are seeing many brands shift TV budgets to the data-driven precision of CTV,” Green said. Green referred to one “global major food” company, without naming it, saying the brand shifted a quarter of its linear TV budget to CTV advertising through The Trade Desk. ![]() Green pointed to Mondeléz and Ford as examples of two of the brands. Green said that the number of advertisers spending more than $1 million on CTV through its platform more than doubled year over year in the second quarter. The Trade Desk’s ad revenue is still well below, say, YouTube, which generated $7 billion in ad revenue in the second quarter, but it is grabbing ad dollars from major brands like Mondeléz. The Trade Desk is trying to become a clearinghouse for CTV platforms to funnel ad inventory to digital ad buyers, and it competes with Google’s YouTube, Hulu, Roku, Amazon Fire TV and others. “Broadcasters recognize that the traditional upfront process is a mismatch. It doesn’t work in a digital world where data and personalization are required to succeed.”ĬTV is a hot category in digital advertising, as brands are seeing higher prices for commercials on linear TV but lower audience numbers. Green said this dynamic works in The Trade Desks’s favor. Green explained the shift in advertiser behavior, saying it is disrupting the traditional TV upfront way of buying ads, when brands commit to spend a certain amount of money on TV ad inventory months before those commercials actually air. More advertisers are transitioning to digital TV outlets, where there is more flexibility and more data underpinning the targeting of the ads. Jeff Green, CEO of The Trade Desk, said that the number of CTV advertisers on its platform topped 10,000 in the second quarter, representing an increase of more than 50% year over year. Meanwhile, CTV was its fastest-growing channel with a higher growth rate than the overall advertising business. Overall, The Trade Desk’s ad revenue reached $280 million, an increase of 101% year-over-year in the second quarter. ![]() The Trade Desk mostly credited connected TV advertising for its surge in ad revenue in the second quarter, the ad tech company said in its earnings report on Monday.
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