The Trade Desk (TTD) has long positioned itself as a champion of the "open internet," promoting the idea of an online ecosystem that thrives beyond the walled gardens of big tech. But as the industry scrutinizes their practices, a critical question arises: Is TTD genuinely supporting the open internet, or are they curating a premium segment of digital publishers?
Defining the Premium Internet
According to TTD, the "premium internet" encompasses:
- Most Popular and Engaging Digital Publishers: This includes websites, connected TV platforms, and digital audio channels that boast high engagement rates.
- Rigorous Ranking Criteria: Publishers are ranked based on several factors, including:
- Advertising quality (e.g., viewability, ads to content ratio, refresh rate)
- Reach and decisioned programmatic inventory
- Supply path efficiency
- Distribution quality
While many in the industry have criticized TTD for potentially becoming more like an ad network, there are three critical points to consider:
1. CPM Uplift Comparison
One of the fundamental questions is whether TTD can demonstrate the CPM (Cost Per Mille) uplift gained by the top 100 publishers compared to the rest. How does this uplift compare to big tech's walled gardens?
- Transparency in Performance: If TTD’s premium segment truly delivers higher CPMs, this transparency could validate their approach.
- Competitive Benchmarking: Comparing these CPMs with those achieved by big tech could offer insights into the efficacy and value of TTD’s curated inventory.
2. Absence of Gaming Apps in the Top 100
It’s puzzling that no gaming app appears in TTD's top 100 publishers. This raises questions about the perceived advertising quality of gaming and utility apps.
- Advertising Quality in Gaming: Anecdotal evidence suggests that gaming apps have robust advertising strategies and high user engagement. Therefore, their absence in TTD’s rankings might indicate a need to reassess the criteria or the market’s understanding of ad quality in gaming.
- Broader Implications: This could have broader implications for advertisers seeking diverse and engaging platforms to reach their audiences.
3. Infinite Supply and the Need for Curation
The digital ad industry is awash with supply, with new players like PayPal entering the fray as ad platforms. This abundance of supply necessitates a shift towards curation.
- Curation vs. Cheap Inventory: Demand-side players must curate high-quality inventory to avoid being reduced to mere buyers of low-cost, low-quality ad spaces.
- Smart Buying: Successful programmatic advertising relies on intelligent buying strategies that prioritize quality and efficiency, not just projected efficiencies touted by agencies.
The Elephant in the Room: Programmatic Buying
The industry often likens programmatic buying to financial algorithmic trading, but the reality is starkly different.
- Programmatic as a Channel: Beyond a few exceptions, programmatic buying has primarily been treated as a channel rather than a capability.
- Challenging Realities: The ad programmatic trader’s role can be likened to a coal shoveler’s—working tirelessly to manage vast quantities of inventory under challenging conditions.
The Road Ahead
The journey of programmatic advertising is just beginning, with more forks and developments on the horizon. As TTD navigates this landscape, its role—whether as a champion of the open internet or a curator of premium digital real estate—will continue to evolve.
Conclusion
As the debate continues, TTD's strategies and their impact on the digital advertising ecosystem will be closely watched. Whether they are elevating the open internet or redefining premium inventory, one thing is clear: the programmatic road is long and winding, and the journey has just begun.
Connect with me to delve deeper into the evolving world of programmatic advertising and how it can shape your digital strategy. Let’s navigate the future of digital advertising together!
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PDF Reference: TTD Sellers and Publishers Report - May 2024
