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The shift to all things digital rages on and advertisers must follow consumers wherever they go, especially in a world where millions of people pay to avoid ads. The Trade Desk (TTD) is a programmatic ad firm that uses modern solutions to help marketers find their target customers across an array of channels and platforms.
Traditional is Dead…
Digital ad spending surpassed traditional media buying in 2019, as more people cut the cord, turned off their radio dials, and continue to disconnect from various forms of legacy entrainment. Advertisers know they can turn to Google (GOOGL) and Facebook (FB) to reach massive audiences, and Amazon (AMZN) has grown into a solid third player in the space.
The digital ad market is worth over $150 billion a year in the U.S. alone and it is projected to reach $225 billion by 2024. So clearly there is a lot of money to be made by reaching consumers everywhere they are. And it’s worth remembering that U.S. government regulators are looking into Google and Facebook for their outsized control.
The Trade Desk enables its clients to reach consumers on giant and vital platforms like Google. But that is just the start. TTD is an advertising firm for the digital age that’s focused on algorithmic, real-time bidding to hit target consumers and not just pay for say a full-day banner ad on XYZ website.
The company allows clients to utilize its cloud-based platform to create, manage, and optimize data-driven digital ad campaigns across an array of channels, apps, and websites, on mobile devices, connected TVs, audio, and nearly anywhere else one might come across a digital ad.
Think about how many people pay monthly subscription fees to have ad-free content on Netflix (NFLX), Disney+ (DIS), Spotify (SPOT), Apple Music (AAPL), and countless platforms. This heightens the need for tech-focused, data-driven solutions to reach very specific targets and provide tangible results. And The Trade Desk has grown because of its ability to provide results to clients with its robust demand side platform.
Wall Street has Noticed…
TTD was impacted by the sudden coronavirus-based pullback in global ad spending in the second quarter. But it bounced back in Q3. The firm topped our quarterly estimates at the start of November with sales up 32% to help it post record quarterly revenue of $216 million.
The nearby chart shows that Wall Street has rewarded TTD stock over the last year, despite the setback. And the stock soared after its Q3 release and it is now up 80% in the past three months alone. This is part of a 250% climb in the past 12 months and a massive run since its IPO in the fall of 2016 when it was trading at under $30 a share.