Technology

The commerce desk is up greater than 27% as streaming TV advertisements rebound

the-commerce-desk-is-up-greater-than-27-as-streaming-tv-advertisements-rebound

Jeff Green, CEO of The Trade Desk

Scott Mlyn | CNBC

Trade Desk stock hit a new 52-week high on Friday afternoon, closing more than 26% after reporting third-quarter earnings on Thursday that showed signs of a rebound in ad spend on their platform and growth in the networked TV business showed.

The company sells technology that enables brands and agencies to reach audiences across media formats and devices, and has a particularly strong presence in the networked television (CTV) market. The company had third-quarter revenue of $ 216 million, up 32%, and said CTV growth was up more than 100% year over year for the quarter. The company posted a 13% decline in revenue in the second quarter as the pandemic impacted ad spend.

The TV streaming boom sparked by the pandemic has paid off in large measure for The Trade Desk. According to advertisers, advertisers are becoming more aware and data-driven with their spending. As more people stream shows and movies in their living quarters during the pandemic, The Trade Desk saw more opportunities to show them ads on platforms like Disney's Hulu and ESPN, Sling, Tubi, and Comcast's NBCUniversal, as well as third-party content on Amazon Fire TV.

"As advertisers come under pressure to demonstrate the ROI of their campaigns, capitalize on the mass consumer shift to streaming TV, and consider alternatives to user-generated content, our investments in these areas are paying off," said Co-Founder and Co-Founder CEO Jeff Green said in a statement.

Stifel said Friday that The Trade Desk appears to be one of the bigger winners in digital media when it comes to accelerating the move to digital advertising during Covid, "as it is exposed to CTV advertising, which is largely from cable cutting / streaming Adoption trends have benefited from videos. "

Analysts were also positive about The Trade Desk's work on an initiative called Unified ID 2.0, a new approach to online identity to replace third-party cookies. LiveRamp, Criteo and Nielsen have announced in the past few weeks that they are working with the company, and the Trade Desk announced that it will also announce publishers and advertisers who are "signing up soon".

"TTD continues to be the driving force behind UID 2.0, which we expect to replace / enhance the targeting / tracking technology that emerges from the digital ad ecosystem, and we see the likely success of this collaborative effort as a catalyst for that Display tech group as a whole, "wrote Stephens analysts on Friday.

"Rather than writing its own proprietary identity technology about publishers, TTD is taking on the cloak in the battle between the open internet and the walled gardens. The company, and Jeff Green in particular, are at the center of a federal effort we have partnered will turn out to be Advertisers / open internet technicians / publishers / consumers will be a win / win / win / win situation, "they added.

– CNBC's Michael Bloom contributed to this report.

Disclosure: NBCUniversal is the parent company of CNBC.

0 Comments
Share

Katherine Clark