The Trade Desk (TTD -0.45%) is going through a testing time. Slower growth, a sudden CFO change, and intensifying competition have spooked investors. But while short-term sentiment is bruised, the long-term growth story hasn't disappeared. The next decade could offer The Trade Desk some of its strongest tailwinds yet.
Here are three areas that could drive meaningful upside for investors willing to look beyond the volatility.
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Connected TV is becoming the future of advertising
The rise of the internet has brought new opportunities, while disrupting many old business models. One of the most significant casualties is the fall of linear TV as consumers shift to streaming platforms. According to Statista, U.S. connected TV (CTV) ad spend is expected to climb from $30 billion in 2024 to nearly $40 billion by 2027. On a global scale, Grand View Research anticipates that this market will grow from $268 billion in 2024 to $531 billion by 2030. Needless to say, the opportunity size is gigantic!
Fortunately, that's where The Trade Desk has been building its edge. Unlike walled-garden players like YouTube or Facebook, the programmatic advertising company acts as an independent demand-side platform (DSP), helping advertisers access premium streaming inventory across multiple publishers. Its partnerships with companies like Walt Disney (Disney+ and Hulu) and Netflix, as well as its Unified ID 2.0 initiative, give it a strong position as advertisers demand more transparency and interoperability in CTV.
With the average U.S. household now streaming content across multiple platforms, advertisers are increasingly seeking a single tool to unify campaigns and optimize their spending. The Trade Desk provides that, and if CTV grows as projected, the company could ride one of the biggest secular ad shifts of this decade.
Retail media: A new advertising frontier
If CTV is the reinvention of television, retail media is the reinvention of the shopping aisle. By placing ads directly on retailer websites and apps -- think Walmart, Target, or Instacart -- brands can reach customers at the moment of purchase. And because retailers own first-party purchase data, these ads are more measurable and more valuable than traditional display banners.
Retail media is already one of the fastest-growing channels in the advertising industry. GroupM estimates that the global retail media market will reach $177 billion in 2025 and is likely to continue growing in the next decade.
The Trade Desk carved out a role here by powering retailer ad networks outside of Amazon. Its partnership with Walmart Connect is one of the most high-profile examples, giving brands access to Walmart's massive shopper base through The Trade Desk's platform. As more retailers look to monetize their data, The Trade Desk is positioning itself as the independent partner of choice.
For advertisers, The adtech company solves two problems at once: reaching customers close to conversion, and doing so outside the walled gardens of Amazon or Alphabet's Google, giving them more visibility and control over their advertising campaigns. That's a recipe for long-term growth.
International expansion: Unlocking the next growth wave
Today, The Trade Desk generates the majority of its revenue in the United States. But the bigger story is still to come: the international advertising market. According to Magna Global, global digital ad spend is expected to reach $1.1 trillion by 2025, with approximately two-thirds of that coming from outside the U.S. With only 12% of the company's coming from international markets, the opportunity is enormous.
The Trade Desk already established a presence in numerous markets, including China (through partnerships with Alibaba, Baidu, and Tencent) and India. But international remains a long runway. If the company can replicate its U.S. playbook abroad, the opportunity could dwarf its domestic business. Even capturing a small share of global ex-U.S. spend could add tens of billions in potential revenue capacity.
What does it mean for investors?
The Trade Desk is undergoing a challenging period as it attempts to adapt to changes in its external environment and improve its operations.
While its short-term prospects are uncertain, the long-term growth picture is clear. The Trade Desk sits at the center of three of the fastest-growing areas in digital advertising. Connected TV, retail media, and international expansion aren't just incremental growth drivers -- they're multidecade shifts in how brands allocate ad dollars.
Together, these markets represent several hundred billion dollars of addressable spend in the coming years. As the leading independent DSP, The Trade Desk doesn't need to win every battle to succeed; it simply needs to remain the trusted alternative to walled gardens.
For patient investors, it's worth keeping an eye on the company.
