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The Trade Desk's Platform Officially Launches in China

By Daniel Sparks – Updated Apr 15, 2019 at 3:33PM

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Here's why this is big news.

Buy-side programmatic ad-buying platform The Trade Desk (TTD -7.16%) said on Tuesday morning that it's stepping up its efforts in China, one of the company's most important growth markets. Specifically, The Trade Desk is officially opening up its programmatic ad-buying platform to marketing opportunities in China through a handful of important partnerships.

The Trade Desk has said the country would be one of its main focuses in 2019 -- and a move to expand its programmatic platform in China beyond beta status shows how serious the company is about its global expansion.

A person looking at charts on a laptop

Image source: The Trade Desk.

Connecting global brands to China

The move gives global brands a way to run targeted, measured campaigns in a massive market that includes 20% of the world's internet users. To ensure agencies and brands can run their ads efficiently in the market, The Trade Desk has lined up some impressive integrations and partnerships. This means brands on The Trade Desk's platform have access to ad inventory within premium content, as well as data and measurement designed specifically for the Chinese market.

Premium China-based media platforms offering ad inventory on The Trade Desk's platform include Baidu (BIDU -1.82%) Exchange Services; Baidu's streaming service, iQIYI; Tencent (TCEHY -3.95%) Marketing Solution; and Alibaba's (BABA -3.65%) video streaming service, Youku.

Highlighting the significance of this announcement, this gives global brands access to China's top three streaming platforms. 

"China presents a huge opportunity for global brands looking to grow their customer base," said The Trade Desk in a press release about the platform's launch in the market. "According to a commissioned study conducted by Forrester Consulting on behalf of The Trade Desk, 92 percent of global marketers believe China is a significant growth opportunity for their business."

Tencent Marketing Solution's chief data strategy officer, Benson Ho, cited The Trade Desk's "independence, objectivity, and global reach" as key factors influencing Tencent's decision to form this strategic partnership with The Trade Desk.

Ho added: "Our audience, scale, and insights, combined with the transparency, reach, and control offered by The Trade Desk's platform, ensures that innovative marketers can understand and engage with consumers in China throughout their entire journey."

Check out the latest earnings call transcript for The Trade Desk.

There's probably more to come

CEO Jeff Green has said The Trade Desk brings a compelling value proposition to China because of its independent stance. As a pure-play buy-side platform without any content business or sell-side platform, Chinese content providers looking to monetize their content trust The Trade Desk's objectivity for bringing global marketing campaigns to their platforms.

China was one of the key themes The Trade Desk management focused on during its recent fourth-quarter earnings call. In fact, Green participated in the call from an office in Hong Kong, where he said the company is spending increasingly more time.

While Tuesday's news is certainly a major step for The Trade Desk in China, there's probably more to come on this front throughout the year. "China is a long-term investment; we're only at the beginning, but I'm super optimistic," Green said during the fourth-quarter call.

Daniel Sparks owns shares of The Trade Desk. The Motley Fool owns shares of and recommends Baidu, Tencent Holdings, and The Trade Desk. The Motley Fool has a disclosure policy.

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The Trade Desk Stock Quote
The Trade Desk
$56.79 (-7.16%) $-4.38
Baidu Stock Quote
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Tencent Holdings Limited Stock Quote
Tencent Holdings Limited
$33.76 (-3.95%) $-1.39
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Alibaba Group Holding Ltd.
$81.24 (-3.65%) $-3.08

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