TTD - Some interesting nuggets

Investment Analysis Clubs Saul’s Investing Discussions
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There seems to be renewed interest in The Trade Desk (TTD) on this board so I thought I would share a few nuggets about the company that give a sense of the opportunity ahead of them.

These are in no particular order…just a brief list of quick read bullets:

  1. TTD is enjoying the secular CTV tailwind behind their backs, while walled garden platforms like META and GOOG are being challenged to adopt open standards and protect user privacy.

  2. TTD serves many large global brands like Disney, Walmart, NBC and Target.

  3. They reach about 90M households in the US via 120M+ CTV devices.

  4. Their cloud-based, AI driven KOA platform serves up about 12M ad slots/sec that can be dynamically targeted by clients using both 1st party data or 3rd party data in a very consumer-specific personalized mode.

  5. TTD has strategic relationships with over 80 integrated ad exchanges and supply side publishers.

  6. They are the largest demand source for decisioned, premium CTV advertising in the world.

  7. Advertising spend with TTD has doubled in the last two years and 10xed in the last 7 years.

  8. Institutional ownership stays strong at 71% after rising for two of the past four quarters.

  9. TTD identified the key product areas it is currently focused on - identity, connected TV, retail media and supply chain optimization. In each of these areas, they signed major new partnerships in Q2.

  10. They continue to build support for Unified ID 2.0 (UID2), an industry-wide approach to identity that preserves the value of relevant advertising, while putting user control and privacy at the forefront. UID2 is an upgrade and alternative to third-party cookies. In Q2 they announced adoption partnerships with Disney, Amazon AWS and Vox Media.

  11. The company discussed, at length, how they are bullish about their partnership with Disney and how it has been enabled by existing infrastructure bridges with Adobe, Snowflake and Salesforce CRM. Disney spends about $9B annually on advertising, 40% of which could come TTD’s way for CTV ads.

  12. CTV represents about 40% of their business, mobile is about 30%, Display ads is about 15% and Audio ads is about 5%.

  13. CTV spend in Europe doubled YoY in Q2.

  14. Programmatic spend in the US has about an 86% market penetration and internationally, this number is less than 40%.

I am long TTD.

Beachman (beachman.substack.com)

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My daughter works for Microsoft/xander. She said her programmatic advertising team “crushed it” this quarter and she got a big raise and a huge bonus. I don’t know if this is good or bad for TTD.

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My daughter works for Microsoft/xander. She said her programmatic advertising team “crushed it” this quarter and she got a big raise and a huge bonus. I don’t know if this is good or bad for TTD.

It has to be good for Netflix. Thanks.

Andy

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