In this video, I will be talking about The Trade Desk (TTD -1.64%), one of the biggest players in the adtech space, which offers a marketplace that allows customers to purchase various types of advertisements to run campaigns in digital media such as CTV. You can find the video below, but here are the highlights.
- The Trade Desk is the leader on the demand side of the adtech space, with no big competitors. On the supply side you can find players like Magnite and PubMatic, but those are not competitors.
- Since Apple and Alphabet are slowly removing cookies, The Trade Desk has prepared itself and come out with Unified ID 2.0 (UID2). It is becoming the industry's solution for targeted advertising.
- The majority of ad impressions on the platform are now bought via Solimar, the new platform launched in 2021.
- Last quarter the company reported revenue of $395.6 million, up 24% year over year and beating the market's estimate of $389.2 million. Earnings per share (EPS) came in at $0.42, up from $0.37 in the prior year.
- In 2021, gross spending on the platform was $6.2 billion, which is just a drop in the bucket when you know that the global ad industry now stands at $766 billion and is expected to hit $1 trillion by 2025.
- Last week, The Trade Desk launched a new certified service partner program for small and medium-size businesses. Up to now, the company only worked with big customers willing to spend $5 million at least. This opens up doors for many small businesses that didn't have the opportunity to advertise alongside the big boys.
- During the earnings call it was mentioned that last year, the top 25 advertisers on the platform increased their spend by more than 50% compared to the prior year.
- The number of advertisers that spent over $1 million in CTV almost doubled compared to 2020.
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*Stock prices used were the closing prices of March 30, 2022. The video was published on March 31, 2022.
