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The Trade Desk continues to be an exception among advertising technology companies that are struggling to increase their advertising revenues as more and more money goes to Facebook and Google.
The company announced Thursday a revenue of $ 160.6 million in the fourth quarter of 2018, primarily driven by growth in programmatic advertising spending on connected television and audio devices.
The programmatic advertising company has achieved a total business turnover of $ 477 million in 2018, up 55% from $ 308.2 million in 2017. Trade Desk technology connects to corporate offices. negotiating agencies for programmatic advertising.
In 2019, the Trade Desk said it hoped to grow faster than the rest of the programmatic industry, realizing at least $ 637 million and gross spending of at least $ 3.2 billion. USD on its platform, said Jeff Green, CEO of the Trade Desk call.
Programming companies make smart TV gains
The Trade Desk recorded the highest growth in connected TV, with an increase in spending of 525% over 12 months. Mobile expenses increased by 69%. while programmatic audio expenditures increased by 230%.
In the fourth quarter, more than 160 advertisers spent more than $ 100,000 each on connected TV advertising, Green said. In 2018, the company's inventory for streaming TV ads has been multiplied by six, the bulk of new inventory coming from networks such as NBCUniversal, A + E Networks and CBS, who are currently building their own streaming services.
Read more: Businesses and networks of advertising technologies base their hopes on TV streaming, but OTT is full of headaches for marketers
He added that the inventory also came from digital actors such as Hulu, who collaborates with The Trade Desk to do programmatic advertising.
However, streaming TV ads are significantly more expensive and cost more (CPM) than display ads. Over time, prices will go down as more and more premium content becomes available, Green said.
"I do not think it will have a long-term impact on our pricing structure, because we are adding a lot more value by bringing data to the table," he said. "Time will tell, but I think we are in a very strong position."
This week, major brands such as McDonald's and AT & T fired their ads on YouTube after revealing that ads were running alongside videos containing inappropriate comments. Asked about the significance of the crackdown on YouTube for The Trade Desk, Mr Green said he expects a short-term increase in spending by major advertisers over the next few weeks.
"It takes a lot of money to find a new home," he said. "I think this represents an opportunity for us, but I think it's hard for all these advertisers to get away from YouTube."
China has a lot of potential
The relocation of the Trade Desk to China has been another important topic of the call for results. The trade office has long regarded Asia as a source of growth and badysts have repeatedly asked Green to provide details on the company's projects, particularly in China. According to Green, 86% of the company's revenue comes from the United States, the goal being to get two-thirds of revenue from international markets.
"The world's largest and fastest growing middle clbad in world history is emerging here in Asia, and global brands want to reach these new consumers," Green said.
Specifically, Green mentioned Alibaba, Baidu and Tencent as critical media partners in Asia. However, the Chinese market is notoriously difficult to crack for marketers. Green stressed that the country is a "long-term investment".
Because Chinese companies have taken longer to advertise, Green said they have benefited from learning from the lessons learned from measurement errors and the walled gardens of Facebook, Google, and Amazon.
"The basics with Baidu, Alibaba and Tencent are clearer than those with Google, Amazon and Facebook, which makes it much easier to talk about data activation," he said. "I do not think we'll have the same debates and the same evolution we've had in the rest of the world."
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