The Trade Desk (TTD) is reportedly exploring the development of a connected TV operating system, a move that has sparked discussions about its implications for the TV advertising market. Initially, TTD denied the reports, but subsequent details suggested a partnership with Sonos, lending credibility to the idea. This development raises several questions about TTD's motivations and the challenges it may face in entering a competitive landscape dominated by established players like Samsung, LG, and Vizio. Gaining market share in the smart TV sector is expected to be a significant challenge for TTD. Unlike the mobile operating system market, which is largely controlled by two major players, the smart TV market is fragmented with numerous manufacturers that prioritize their own customer relationships and advertising strategies. The difficulty of securing app distribution and partnerships is underscored by the long-standing efforts of companies like Google, which has not achieved dominant market share with its Google TV software. TTD's lack of consumer brand recognition could hinder its ability to attract users, making partnerships with established brands like Sonos crucial. Another consideration is whether TTD aims to develop its own technology from scratch or build upon existing software. The example of Amazon Fire TV, which initially utilized Android software before transitioning to its own, suggests that TTD might take a similar approach. However, the competitive landscape, particularly its rivalry with Google, complicates this strategy. The potential for fragmentation in the TV operating system market poses risks for TTD if it attempts to create a standalone OS. TTD's financial performance is also a factor in its decision-making. With a market capitalization of $54 billion and a recent revenue increase of 26%, TTD is under pressure to maintain growth. Analysts have noted that the company is valued at a premium, and there are concerns about its ability to sustain this valuation amid challenges in the open web and potential shifts in the connected TV landscape. A successful entry into the TV operating system market could help TTD align its business model more closely with that of companies like Roku, which monetize through advertising. The potential benefits of owning a TV operating system include enhanced data collection and analytics capabilities, which could improve TTD's advertising platform. By understanding viewer behavior and ad performance more intimately, TTD could redefine measurement standards in the industry. However, the company would still need partnerships to access comprehensive content recognition data. There are also intriguing possibilities for TTD to explore retail media partnerships, potentially collaborating with electronics brands to create devices that integrate advertising solutions. This could position TTD as a key player in the retail media landscape, further diversifying its revenue streams. The idea of TTD acquiring Roku has been floated as a way to quickly gain market share in the TV operating system space. However, regulatory hurdles and the complexities of merging two ad tech companies' technologies could complicate such a move. Finally, the broader implications of TTD's potential entry into the TV operating system market raise questions about monopolistic practices in the advertising technology sector. As companies like Amazon and Roku consolidate their positions by integrating advertising and data services, TTD's strategy could attract scrutiny from regulators, especially if it appears to be building a comprehensive tech stack that could dominate the market. In summary, TTD's exploration of a connected TV operating system reflects a strategic response to the evolving landscape of digital advertising, with potential benefits and significant challenges ahead. The company's ability to navigate these complexities will be crucial as it seeks to establish a foothold in the competitive TV advertising market.

The Trade Desk's new biannual Sellers and Publishers Report highlights the rise of premium internet content. The top 500 digital publishers now account for 50% of open internet advertising revenue. The report also includes a list of the top 100 open internet publishers valued by advertisers for their quality and reach.

Disney's partnership with Google and The Trade Desk will expand the Disney Real-Time Ad Exchange (DRAX). Users of Google's DV360 and The Trade Desk will have direct access to ad inventory on Hulu and Disney Plus. It will offer marketers a wider range of options to reach audiences across streaming platforms.

Netflix's ad-supported plan now has 40 million monthly active users, with more than 40% of all signups in ads markets picking the plan. The Trade Desk, Google's Display & Video 360, and Magnite will join Microsoft this summer as Netflix's main programmatic partners for advertisers. Netflix has announced plans to launch an in-house ad tech platform. It also announced a slew of new content, including two NFL Christmas games, and a slate of new measurement partners.

LinkedIn has expanded its advertising offerings for B2B marketers by introducing connected TV ad placements. This will enable marketers to target audiences off-platform while they're streaming shows and movies. The move aims to reach users more intentionally during their workday or leisure time.

The sense of optimism felt by the ad industry in the first half of 2024 is expected to endure, with a significant number of advertisers midway through the year reporting that they again plan to maintain or increase their spending in every channel. 56% of marketers listed connected TV (CTV) and streaming as the most critical consumer technology and media trend, followed by generative artificial intelligence (AI) at 55%. Meanwhile, the amount of time spent streaming increased by more than 40% in June, marking its largest share of TV usage ever recorded.

90% of ad buyers are shifting personalization tactics as a result of increased privacy legislation and signal loss, with ad budgets increasingly allocated to channels that leverage first-party data, such as CTV, retail media, and social media. One challenge marketers are likely to face as they focus more on first-party data is a lack of interoperability between these channels, which makes it harder to assess effectiveness.

TV networks are struggling in the current upfront market as advertisers reduce their spending and demand significant rate rollbacks. With an oversupply of streaming ad inventory and reduced demand, networks like Disney, NBCUniversal, and Fox are aggressively negotiating deals, while Amazon and Netflix hold out for higher rates. The industry also faces challenges from a lack of new content due to last year's Hollywood labor strike and cautious advertisers, further complicating the market.

Despite the fact that digital and streaming video account for 70% of viewing hours, less than half of video advertising spend goes to those channels. This discrepancy represents more than $20B in advertising spend that could be better allocated. Unified video is set to revolutionize video advertising by integrating planning, buying, and measurement across channels. Key tactics include defining a single strategic audience, selecting channels based on reach and quality, and calibrating planning tools with in-market test results.

AI advancement poses a significant threat to the adtech industry, with its ability to filter out ads, potentially reducing the $1 trillion in annual revenue that companies like Google, Meta, and TikTok currently enjoy. This series explores how AI disrupts the crucial ad inventory by appealing to consumers' desire for ad-free content and questions the stability of Big Tech's business models. The analysis delves into AI's effects on ad consumption, which has implications for major players like OpenAI, Microsoft, Apple, Meta, and Alphabet.

Amazon Prime's TV viewing share remains consistent at about 3% post-introduction of ads, challenging its ability to become a dominant ad impression platform. As streaming continues to grow, Amazon must ensure Prime remains engaging to maintain its viewer base and attract advertisers. High-profile projects, such as those involving Mr. Beast, may help bolster Prime's appeal and ad revenue potential.

TikTok Symphony's new AI-powered ad suite offers tools for script writing and video production and automation features for matching brands with the right creative assets and audiences. With TikTok One, advertisers can connect with nearly two million creators and agencies. The new ad suite is a clear sign of how the company is fighting to stay competitive with Meta and Google, which are heavily investing in AI-enhanced ads.

The European Commission has issued a new request for information to Amazon regarding its advertising practices and recommender systems, highlighting a push for greater transparency under the Digital Services Act. This scrutiny could lead to more transparent ad targeting and potentially fairer competition on Amazon's platform.

Although Netflix leads in streaming, it faces a tough challenge in advertising. It is only the ninth or tenth largest player. The company's efforts to expand its ad-supported tier have seen mixed results, with under-delivered impressions and strained partnerships. Netflix is exploring live events and sports to increase its advertising inventory and reach and compete with industry leaders like Amazon and Disney.

Tech giants, including Google, Apple, and TikTok, are preparing to comply with the Digital Markets Act (DMA) as it comes into effect in the European Union. The DMA aims to promote interoperability and consumer choice, particularly among designated gatekeepers like Google and Apple. While some companies express concerns about potential risks and impacts on user experience, others like TikTok are contesting their gatekeeper status while implementing mandated changes.

The US Department of Justice's next monopoly trial against Google started on Monday. The trial challenges the tech giant's ad tech dominance. The DOJ is arguing that Google broke competition in the ad tech space by engaging in a systematic campaign to seize control of the tools used by publishers, advertisers, and brokers to facilitate digital advertising. Google profits from both advertisers and publishers, pocketing at least 30 cents of each advertising dollar flowing from advertisers to website publishers through its ad tech tools. The trial is expected to last four to six weeks and may be the most consequential of the monopoly trials Google has recently faced.

Roku filed a patent for a system that could extend ad placement beyond its platform. Ads would be displayed over content paused on external devices connected to Roku TVs. This technology, still in the patent stage, proposes detecting static or paused video content and overlaying relevant ads. This potentially opens up new advertising opportunities and revenue streams for Roku.

Brands are integrating gaming into their advertising strategies through interactive ad formats. Disney launched advergames on Hulu and ESPN, allowing viewers to engage in trivia and rapid-fire games linked to brands. Amazon introduced interactive trivia ads that offer quiz-like experiences and incentives like shopping credits. Discord embraced "sponsored quests," enabling users to earn rewards while participating in brand-related gaming activities. This trend reflects the growing acceptance of gaming, with consumer spending on mobile games recently surpassing $20 billion.

The phasing out of third-party cookies is driving the adoption of sell-side curation, where supply-side platforms use first-party data to create targeted audience segments for advertisers. This development is transforming the ad tech landscape by reducing demand-side platforms' dominance in audience curation and increasing the strategic importance of supply-side platforms and data management platforms.

Experts claim Google's monopolistic practices inflate advertising fees, which are passed on to consumers, raising prices for everyday goods. The antitrust trial illustrates how Google's dominance stifles competition, reduces innovation, and results in lower-quality ads targeting consumers with irrelevant products. A breakup could promote alternative ad models that enhance privacy and improve ad quality, benefiting both consumers and publishers.

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Amazon advertising services grew 20% YoY in Q2 to $12.77 billion, a deceleration from prior quarters. Most ad revenue still comes from sponsored product formats, but the retail media category has become more competitive and mature. Forecasts suggest retail media's growth rate could slow next year as budgets are exhausted. Amazon introduced commercials to Prime Video and in May hosted its first upfront event pitching for larger TV ad budgets, though these deals can take time to materialize.

Regulators argue Meta's new ad model fails to offer a less personalized alternative as required by the Digital Markets Act.

Both LG and Samsung demonstrated transparent television screens at CES 2024. The companies have very different approaches to the technology - Samsung is betting on microLED screens while LG is pursuing OLED displays. Neither technology is ready yet. This article takes a deep dive into each of these display technologies. It looks at how they work, the problems they face, and the applications of transparent screens.

Walmart's retail media network is far ahead of the pack compared to U.S. peers when it comes to delivering advertising impressions – 11 billion impressions in Q1 in fact, while Target generated fewer than 7 billion. It has invested heavily in its retail media network, Walmart Connect, making ambitious bets on building out an ad-tech infrastructure. Walmart Connect also has data-sharing partnerships with major platforms and publishers, including TikTok and Disney. Other retail media networks in more specialized categories, like pet supplies (Chewy) and home improvement (The Home Depot), have also reached a high degree of scale, with over 1 billion impressions each.

The Department of Justice (DOJ) recently concluded a three-week trial focused on allegations that Google has established illegal monopolies within the ad tech market. Central to Google's defense is the assertion that the DOJ's understanding of the online advertising landscape is flawed. Google contends that the government is mischaracterizing the market by failing to recognize the significant competition it faces from social media platforms. The DOJ has defined the relevant market as comprising open web display ads, which include the ad boxes and banners seen on various websites. It identifies three key components: publisher ad servers, advertiser ad networks, and ad exchanges. According to the DOJ, Google holds a dominant position in this market, particularly through its publisher ad server, DoubleClick For Publishers (DFP), which it claims has a 90% market share in the U.S. The DOJ argues that Google's dominance is partly due to its practice of tying its products together, compelling publishers to use DFP to access Google's extensive advertiser base. In contrast, Google argues that the market should be viewed as a single entity where both buyers and sellers of digital advertising interact. The company claims that its integrated ad tech solutions provide benefits to customers, making it more efficient and cost-effective compared to using multiple separate products. Google’s expert witness, economist Mark Israel, emphasized that the digital ad industry is fundamentally about making connections between buyers and sellers, and that Google's offerings enhance this process rather than create monopolistic harm. A significant aspect of Google's defense hinges on the Supreme Court case Ohio v. American Express, which dealt with two-sided markets. Google aims to demonstrate that the ad tech market operates similarly, suggesting that the DOJ must prove that Google's actions harm both publishers and advertisers. This presents a challenge for the DOJ, as actions that benefit one side may not necessarily be detrimental to the other. The DOJ has also attempted to delineate the market by asserting that open web display ads are distinct from other forms of advertising, such as those on social media or video platforms. Google counters this by arguing that advertisers prioritize return on investment and will shift their budgets to platforms that yield better results, regardless of the specific format of the ads. Internal documents from Google reveal that the company closely monitors competitors that the DOJ has excluded from its market definition, including social media giants like TikTok and Facebook, which Google views as significant threats. Google argues that the presence of these competitors serves as a check on its market power. The trial has seen intense cross-examination, with DOJ counsel challenging the credibility of Google's expert witnesses and their claims about competition. The DOJ has illustrated that even as advertisers may diversify their spending, publishers still rely heavily on display ads, which creates a complex dynamic in the market. Judge Leonie Brinkema has presided over the trial, maintaining a focused approach while seeking clarity on the market definitions at play. As the trial progresses, the judge has indicated that the definition of the market is crucial to the case, and she will consider the entirety of the evidence presented before making her ruling. The closing arguments are set for November 25th, where both sides will have the opportunity to further articulate their positions on the market definitions and the implications for competition in the ad tech industry.

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Costco is building out an ad network built on its trove of loyalty membership data, using its 74.5 million household members' shopping habits and past purchases to power targeted advertising on and off its website. The wholesale retailer is still testing such capabilities, and it's fielding offers from potential ad-tech vendors, but the move signals that the third-largest retailer in the US could become a formidable player in the already deeply fragmented retail media space, which is estimated to reach $166 billion by 2025, and responsible for 20% of all digital media spend this year.

US digital video ad spend is expected to hit $63B in 2024, a 16% increase from the previous year. For the first time, digital video — which includes CTV, social video, and online video — will claim a higher share of budgets than linear TV. Cable subscriptions have continued an annual decrease of 6% each year.

A new study found that viewers' income and likelihood of buying a product were not factors that determined how much it costs to reach them — it's how active they are on the platforms where the ads run. More active audiences command a lower advertising price per impression, while groups that don't tune in as often cost a premium to advertise to. As a result, TV advertisers pay more to reach young men who watch TV infrequently and pay less to reach women and older groups, whereas on platforms such as Instagram and TikTok, older audiences can be more expensive to reach. This scarcity factor explains why broadcast and cable advertising revenue largely held steady from 2014 to 2019, even as more people moved over to streaming services.