The Trade Desk Stock Drops As Advertisers Shift To Amazon

The Trade Desk Inc. TTD shares are trading lower Thursday after an Adweek report revealed major advertisers are pulling ad dollars from its platform and moving them to Amazon's.

What To Know: According to the report, the shift is especially visible in connected TV (CTV) ad budgets.

One global auto brand moved $80 million in annual ad spend from The Trade Desk to Amazon by the end of the first quarter. A large tech company also redirected $5 million for a campaign. Ad agency PMG said 80% of its clients have already shifted tens of millions from The Trade Desk to Amazon, while another agency said 30% of its clients dropped The Trade Desk entirely over the last six months.

Advertisers say Amazon offers better pricing, more flexible deals, exclusive access to live sports like Thursday Night Football and stronger control over where ads appear. Amazon's DSP fees can be as low as 1%, far below the 7%–15% typical with other platforms, including The Trade Desk.

The Trade Desk has faced complaints about rigid spending commitments and platform fees even when minimums aren't met. Some buyers say Amazon is actively targeting The Trade Desk's clients and that strategy is working.

Even though The Trade Desk reported 25% revenue growth in the first-quarter, Amazon is gaining ground fast, posting $13.9 billion in ad revenue for the quarter, up 18% year-over-year.

Price Action: The Trade Desk shares were down 4.17% at $72.89 at the time of writing, according to Benzinga Pro.

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