2020 was a ‘wake-up call’ for TV commercials, says The Trade Desk CEO

Trade Desk CEO and co-founder Jeff Green said the past year had been a wake-up call for the advertising industry as consumers shifted away from traditional TV to streaming and online video.

“2020 has been a wake-up call for the advertising industry when it comes to television,” Green said during the company’s fourth-quarter earnings call Thursday. He said the company’s connected TV business, where it sells ads on streaming platforms, doubled in the fourth quarter compared to a year ago.

The Trade Desk, which has a booming connected TV business, has a lot to gain as advertising revenue moves away from traditional linear TV. With more people in their living rooms streaming shows and movies during the pandemic, The Trade Desk saw more opportunities to show them ads on streaming platforms. Green said the pandemic has accelerated a change in that direction and in other areas.

“We have talked a lot over the past 12 months about how the pandemic has accelerated trends that were already underway, but we could not have predicted how strong that acceleration would be.”

The company’s shares were down about 1% after-hours trading, even after reporting revenue of $ 319.9 million and non-GAAP earnings of $ 3.71 per share, significantly exceeding expectations. The company’s technology helps brands and agencies reach targeted audiences across all media formats and devices.

Green also cited a recent presentation with Procter & Gamble’s brand manager, Marc Pritchard. “He and I believe we’re heading into an inevitable future where all advertising is, and I quote using his words, ‘digital, programmatic, data-driven, and automatic.’

Green echoed Pritchard’s sentiments about the traditional television buying process, in which advertisers typically spend a large portion of their annual television spending in deals during the “up front” season of the television. spring. This is when the networks organize presentations and parties to show media buyers their programming, audience data and advertising tools. Pritchard criticized the process last September, asking for an initial deal later, as well as more flexibility when purchasing ads closer to airing.