The Trade Desk bets big on connected TV as revenue jumps 38%.
The Trade Desk’s CEO, Jeff Green is betting big on OTT. Also, he believes Netflix will offer an ad-supported option soon.
The Trade Desk reported thrid-quarter revenue of $164 million, up 38 percent year-over-year; connected TV is powering the growth. The Trade Desk, is a demand-side platform, also known as DSP, that is used by brands as well as agencies to buy digital ads.
The company is also one of the most successful DSP’s on the market; right after Google.
As for OTT, Green told investors that “there is nothing I’m more excited about, nothing more game changing than what is happening in connected TV.” With that in mind, the company is taking initiative on the advertising segment.
Quarterly, connected TV ad spend on The Trade Desk grew 145% year-over-year. Recently, the company signed deals with new streaming platforms such as Disney, Comcast, Roku, and Amazon.
Green also believes that with new streaming players entering the space, consistently, this can increase the competition and will force all of the streaming services to rethink their business model, including Netflix.
Advertising on connected TV such as Roku, is expected to surge 40% in 2019 to just under $7 billion. By 2021, eMarketer expects connected TV advertising to surpass $10 billion.
While hurdles in the connected TV space remain, The Trade Desk is betting big on the OTT industry.