There is a new TTD article on Seeking Alpha.
Here is the part I think is worth mentioning.
https://seekingalpha.com/article/4337232-trade-desk-time-is-…
There’s another very important point to consider here. Recall that Green called the long-term practice of upfront buying of linear TV inventory upfront as one of the biggest hurdles in ad spend transitioning from linear to CTV:
“The one place where it creates some transition is that most of advertising in the traditional world is sold at an upfront. So one week a year is when they really buy and sell most of the ads…So transitioning from that old way of distribution as well as selling everything on an upfront basis, to a world where more data can be deployed, and decisions can be made all year long instead of just one week a year, that transition is probably the hardest part of the transition.”
The upfront season, which usually starts in spring, has been severely disrupted by the coronavirus this year. There’s no timeline for when live sports will return, and TV viewing patterns in the coming months will be hard to predict. According to the IAB survey, 73% of media buyers estimated that the coronavirus pandemic will affect the 2020/2021 upfront spending commitments, with average spend expected to be down 20%.
So it seems that the coronavirus is creating a situation that is solving a big business hurdle for the company in respect to the industry wide shift to programmatic advertising.
I’ve added back to TTD based on this.
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The upfront season, which usually starts in spring, has been severely disrupted by the coronavirus this year.
The television industry is my professional trade, and I’ve already been a part of numerous discussions about shifting away from upfronts altogether, not just this year. One of the most powerful CEO’s in the business, Disney’s (soon to be retiring) Bob Iger has publicly announced that he has “asked associates to explore permanent changes across businesses that might include ending expensive upfront advertiser presentations.”
The TV/film industry is a fascinating land filled with jealousy, envy, copycats, and herd mentality. Once a major player changes their upfront participation the others will be swift to follow. There is no doubt in my mind that permanent changes are coming to the tv/advertising industry that will benefit TTD and ROKU. I’m long both.
https://deadline.com/2020/04/bob-iger-upfronts-pilots-in-pos…
Brandon
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thanks for sharing this insight Brandon.
this one insight has potential to take Roku on a rocket trip…
I like Roku the most because it is probably the only pure-play CTV adtech stock out there… and it is a dominant player… also this is why Roku’s Dataxu acquisition is a stroke of genius… at right place, at right time with right tool to make money!!!
TTD will benefit for sure but it will also likely have to content with ad revenue drop in other areas… and TTD stock price is perennially expensive…
Telaria (RUBI) has similar challenge in revenue drop in legacy while CTV picks up, although it is very cheap right now…
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