- The Trade Desk’s Q2 earnings showed strong CTV spending growth amid broader revenue decline.
- And we expect CTV will be the fastest-growing channel for programmatic ads for the remainder of the year.
- Insider Intelligence analyzes this industry and several others to provide in-depth analyst reports, proprietary forecasts, customizable charts, and more. Learn more about what we offer.
The Trade Desk, one of the largest demand-side platforms (DSPs), reported its Q2 earnings last week, offering a glimpse into the state of programmatic advertising outside the walled gardens. For the second quarter ending June 30, the company posted $139.4 million in revenues, a 13% year-over-year (YoY) decline, which it attributed to the uniform pause in spending at the start of the pandemic in March.
A slow return occurred over April and May before spending leveled out in June. Despite this downturn, The Trade Desk reported strong growth in connected TV (CTV) spending, which confirms an industry trend that will likely continue for the rest of the year.
CTV was, and likely still is, the silver lining for programmatic advertising during the pandemic. The Trade Desk reported a 40% YoY increase in CTV spend in Q2, which outpaced its other omnichannel efforts — 20% for mobile and 15% for audio.
Programmatic CTV spending has become a strategic priority for an increasing number of brands during the pandemic, as consumers continue to spend a disproportionate amount of their time with streaming services. What’s more is that programmatic options enable advertisers to buy targeted CTV ads at scale. This shift has been further propelled by brands operating with reduced marketing budgets. These brands are still expected to provide measurable ROI from their TV campaigns, an advantage that CTV devices can offer over traditional linear TV.
We expect CTV will be the fastest-growing channel for programmatic ads for the remainder of the year, with plenty of room for growth. We forecast that CTV will be the fastest-growing device segment for both programmatic display and programmatic video ads in the US, although mobile will still make up the majority of such spending in absolute terms.
CTV programmatic display ad spending will increase by 35.5% YoY in 2020, compared to mobile’s 9.0% increase and desktop’s 11.3% decline. CTV programmatic video ad spending specifically will increase by 35.3% YoY compared to mobile’s 12.0% increase and desktop’s 8.5% decline. There is also quite a bit of room for CTV to grow: It has the lowest share of ad inventory that can be purchased programmatically, at 57%, compared to mobile’s 84% and desktop’s 78%.
Want to read more stories like this one? Here’s how you can gain access:
- Join other Insider Intelligence clients who receive this Briefing, along with other Media, Advertising, & Marketing forecasts, briefings, charts, and research reports to their inboxes each day. >> Become a Client
- Explore related topics more in depth. >> Browse Our Coverage
Are you a current Insider Intelligence client? Log in here.
Real Life. Real News. Real Voices
Help us tell more of the stories that matterBecome a founding member
Subscribe to the newsletter news
We hate SPAM and promise to keep your email address safe