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The Trade Desk Partners With TikTok in the Advertising Space

By Aditya Raghunath – Apr 16, 2020 at 2:26PM

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Will TTD's latest partnership contribute to revenue growth in 2020?

Programmatic advertising company The Trade Desk (TTD -4.21%) recently announced a partnership with China-based social media platform TikTok. This is a digital marketing collaboration covering the Asia Pacific markets, where advertisers will be able to access TikTok's ad inventory via The Trade Desk platform.

TTD will integrate its platform with TikTok, enabling ad buyers to make data-based decisions and optimize their ad campaigns. TTD generally enters into Master Service Agreements with ad buyers and generates revenue by charging them a percentage of the total ad spend.

Online ad ecosystem

Image source: Getty Images.

According to Business of Apps, TikTok is the seventh most downloaded app in the 2010s, and it now has an estimated 800 million monthly active users. With over 1.5 billion app downloads, TikTok is one of the most popular apps in Asia and quickly gaining traction in other markets including the U.S. In 2019, there were about 46 million TikTok downloads in the U.S.

In its press release, TTD stated, "TikTok is the first short-form video platform to integrate its ad offerings with The Trade Desk, making this a unique industry-leading development for brands in the region."

Soda giant Pepsi is the first client to access TikTok's inventory on the TTD platform to run an ad campaign in Thailand.

TikTok and other China-based technology companies have been accused of violating privacy norms in the past. However, TTD has confirmed that the data provided will be pseudonymous, ensuring the digital privacy of the customers. Ad buyers will have access to data from 11 regions, including Southeast Asia, India, Japan, Australia, and Russia.

This partnership gives TTD an opportunity to diversify its revenue. In 2019, international billings accounted for 14.7% of total billings for The Trade Desk. 

Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends The Trade Desk. The Motley Fool has a disclosure policy.

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