While other advertising platforms like Google and Goal there have been drops in spending, Trade Desk has closed 2022 with record revenues thanks to the boost of the retail media and the connected television (CTV). Specifically, as reported by the company in a statement, in the last quarter of last year, it reached a new record and billed 491 million dollars, 24% more than in 2021. This impulse finished off growth for the entire year of up to 32 % over 2021, with a total of 1,578 million generated.
These results came despite a shaky economic climate that saw Google and Meta report declines in ad revenue, leading the duopoly to now represent less than 50% of the digital market for the first time in a decade. For Jeff Green, founder and CEO of the companythese results reinforce the idea that more and more advertisers are turning to the open internet from closed environments: “With The Trade Desk and the open internet, advertisers can measure ROI and value more objectively, and that means they will prioritize us over the limitations of walled gardens”.
As in previous quarters, as reported AdExchanger, Trade Desk has attributed its growth to increased adoption by advertisers of the CTV and the retail media. At this point, Green stated that “CTV continues to be the company’s strongest growth engine”, in a scenario of increased streaming options partially financed by ads. Those Disney+ and Netflix raidsand the possible future launch of a free model supported only by commercial income by the latter, consolidate a trend in which The Trade Desk is one of the main beneficiaries.
A key aspect is the increasing penetration of Unified ID 2.0 (UID2), the approach to advertising identification with which the company tries to implement a solid alternative to third-party cookies. At the beginning of the fourth quarter of last year, about 15% of The Trade Desk’s Third-Party Data had UID2 associated with it, a figure that the company expects it to approach 75% by mid-year. Disney or Paramount are some of the latest companies that have adopted UID2. “We have effectively solved the open internet’s identity matching challenge on a scale far beyond anything cookies have ever accomplished, and all while giving consumers far greater control over their privacy.”asserted Green.
Besides, Green also referred to the rRecent antitrust lawsuit by the United States Department of Justice against Google. Upon learning of the lawsuit, Google cited the growth of several companies, including The Trade Desk, as evidence that it is not a monopoly, a claim that Green has previously rejected. This is not us against Google. It is the value and opportunity of the open internet versus the limitations of walled gardens. We have been winning for years and an unfair market with some systemic obstructions working against us. Imagine what we can do as the market becomes fairer.”sentenced Green.
