Market Overview

Trade Desk Forays Into China With Advertising Platform


The Trade Desk Inc (NASDAQ: TTD) is ramping up its efforts in a bid to expand its footprint globally, as is evident from its recently announced plan to launch a programmatic ad-buying platform in China.

Programmatic advertising is the automated buying and selling of online advertising. The company's foray into China would enable marketers to leverage Trade Desk's platform to locate and target audiences and accordingly optimize pricing across markets and devices.

The Trade Desk launched a beta version for programmatic advertising in China in 2018 and was successful in targeting audiences in various sectors including hospitality, luxury retail, education, food, beverage and biotech.

The company's clients can tap into China using the same platform that they use for the rest of the world.

China: A Key Growth Market

According to China Internet Network Information Center (CNNIC), the country has 829 million Internet users. The new statistic takes Internet adoption in the country to 98.6%, with 817 million people reportedly being mobile Internet users.

The country boasts 20% of the world's Internet users, which implies that there is huge opportunity for global brands looking to expand their customer base.

Further, a study conducted by Forrester Consulting on behalf of The Trade Desk showed that 92% of global marketers believe China can aid in fueling the top line of their business.

Management stated on its fourth-quarter earnings call that burgeoning middle class in China is consuming digital media primarily from mobile and (Connected TV) CTV channels. Notably, the robust growth of Trade Desk's CTV platform, which grew nine times year over year, is making the platform more attractive to advertisers in Asia.

Regulations related to direct advertising and continuing decline in macroeconomic conditions in China may be a concern for The Trade Desk.  The authoritarian state is known for tightly regulating content posted on both news and social web channels.

Trade Desk's Measures In China

In a bid to make it convenient for global brands to run their ads efficiently in the Chinese market, The Trade Desk has partnered with China-based media platforms.

The partnership includes the likes of Baidu Inc's (NASDAQ: BIDU) streaming service iQIYI, Tencent's (OTC: TCEHY) marketing solution and Alibaba Group Holding Ltd's (NYSE: BABA) video streaming service Youku.

Notably, Tencent Marketing Solution's chief data strategy officer, Benson Ho, stated that The Trade Desk's "independence, objectivity, and global reach" were the reasons that influenced them to form this partnership with the company.

Further, The Trade Desk also announced integrations with leading data, brand safety and anti-fraud partners including AdBug, Oracle Data Cloud, and RTB Asia. We believe such integrations will aid the company in building trust and assuring advertisers of data safety in China.

The Trade Desk is rebuilding its infrastructure in China and routing its Internet differently so that that it does not violate any regulations. Further, Trade Desk's CEO Jeff Green stated that China is a long term-investment and the company will accelerate spend in the country gradually.

Related Links:

Oppenheimer: Trade Desk Shares Unduly Punished For Possible Cookie Restrictions By Google

Oppenheimer: Trade Desk Positioned For 30% Revenue, EBITDA, FCF Growth

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: contributor contributorsNews


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