As CTV Blooms, It’s Knives Out For The Trade Desk’s Take Rate

The store to take a store (TTD) was one of the most sensitive topics in programming advertising in the last decade.

From 2017 to the present, his taking rate hovered between 19% and 21%, which is reported annually on trade.

Shortly after IPO, founder and executive director for trade Jeff Green said Adexchange That TTD taking rate would cost between 15% -20% “how much we can see in the future.” He was right so far.

Meanwhile, almost every other part of the supply chain noted that the rates of taking be compressed.

SSP taking rates are squeezed and squeezed. Advertisers have declared fees for technological suppliers “Ad Tax”. Many Holdco agencies that suffer in their own business continued to pay a high fee to their supplier, a trade table, which suddenly became a larger company.

However, as rival DSPs are trying to acquire a market share, especially in CTV advertising, they have peeked off by buyers by extinguishing lower prices and lower data fees. A group that offers better offers starts from Amazon ADS DSP -a Comcast to startups like Pontiac DSP.

The merchant table confirmed that his taking rate there were no plans to fall. “Our download rate is consistently about 20% of consumption on our platform and there is no plan to change that,” said spokesman Adxchanger, even when CTV increases its share of platform ads.

For everyone else, these are knives as they reduce the margin and crowds at the present moment during the moment of rare vulnerability.

Why the noise now?

If the controversy of the trade table returns to nine years, why is the topic so important right now?

It is partially that the latest salary earning report was at a time when he discovered the rate, so that the number (cold 20.3% in 2024) is fresh in the head of the people. [note: TTD doesn’t actually report its take rate, but once a year provides gross platform spend, which is the necessary data point to devise the take rate.]

Also, the merchant table had its own First really bad fumble As for the three -month earnings from your IPO. So this is like the Formula One race where everyone is trying to make up for the time while the leader lasts a long Pitstop.

In the program media, the structural changes that open the doors of Smidge to DSP Challengers are also taking place in the program media. First of all, CTV ads have cheaper cloud calculation costs. DSPs aimed at streaming can then convey the savings of data storage costs. And these are not just drivers. Amazon advertising and Comcast ads are two Diva AD Tech that also dramatically reduce demand fees.

Advantage o & o

Amazon is known for low prices – and that includes prices.

Amazon DSP has reduced its DSP fee and offers relatively low streaming rates and CTV ads, said Kate Greubel, Vice President of the Media for independent serving at the E-Trans-owned E-commerce Agency. Amazon emphasized the huge reach of the audience and the first party data.

Greubel also said that in the last year or fewer advertisers who began to test their DSP third parties, namely Amazon and the trade table, to see which provides better rates and quality of stock.

The shopping table spokesman noted Adexchanger that the price of DSP and super-jelly supplies from a large platform is generally compensated elsewhere, as in data for data. And the Amazon’s sellers complain Free Media Amazon DSPWhat is a marketing impetus that offers extraordinary advertisers who are committed to the annual budget, may not be worth the cost of even $ 0.

But Amazon can reduce its streaming advertisement and DSP rates because it is the actual media owner of Fire TV, Prime Video, Twitch, Amazon Search Lists on the spot and more. His advertising job does not come down to a DSP fee; while such a rate is life and death for independent advertising technology.

One advertiser recently Beta tested Amazon’s complete TV and asked to anonymously say to avoid feathers on Amazon, confirmed that the fees were lower.

The fees and the DSP fees themselves were fantastic, according to the customer of the ad. Program guaranteed contracts have offered 0% DSP fees at any Amazon Media, and 1% fee for an assortment of streaming publishers.

However, the controls of the campaign and analytics after the campaign are focused through Amazon Marketing Cloud, a data cooperation tool built by Amazon Ads Business on AWS. The analytics of the audience based on the cloud and the data for data reduce the total savings, the advertiser said.

Despite these warnings, the cost to reach a particular total audience was still far cheaper than a similar media plan purchased at a trade table, the advertiser said.

DSPs embedded in CTV

In the last five to 10 years, there have been many new DSPs on the market “because he is crazy malicious,” said Keith Goobman, co-founder and executive director Mechanics and Pontiac DSP, who is one of those new players to start at the time. Instead of trying everything, DSP is almost exclusively focused on CTV and internet video. DSP is part of a larger DSP group aimed at CTV, such as universal ads Azerion, Azerion and Comcast.

Goobman opposed this approach with an existing independent competitor, a trade table. For virtually every impression that TTD is offered, hundreds of data providers and millions of audience segments are scanned, the right amount for the offer, the right information for use for that impression, and how valuable it should be. Access to the trade table has impressive technology and features, he said, but requires a huge cost in terms of server and permeability.

“Because of this, you should have built a battleship to solve the old world program,” he said.

Pontiac DSP still has a server accounts from Amazon Web Services and uses Aerospike servers, and the supplier of cloudy infrastructure Added was favored by independent technological companies that is Goobman. But it is huge cost savings that they do not have an infrastructure based on cookies or even bother to collect and write data on the website.

Despite the perception that the video will require greater permeability than the pictures, the focus on CTV actually reduces the costs of the server and data. CTV ads are based on IP address and stationary households; While data for displaying AD come from the Mountains of Cookies and the appropriate tables used to identify an individual. These savings help Pontiac to offer a much lower rate of taking, which he also discovers to customers, said GoBerman.

The CTV DSP approach is not unique to Pontiac.

The European media and the technological conglomerate Azerion launched a Hawk in the US last month, which is “light DSP” with fees almost zero, as described by Matthew Newcomb, the Azerion Regional Director of the United States, the UK and APAC.

“Google and a trade table are probably exceptions. But generally speaking, a challenge that DSP faces is due to the cost of processing this information,” Newcomb told Adexchange.

Azerion can reduce the typical DSP fee by 80%, he said. Partly, these savings come from scanning less impressions and recording fewer cookies, he said. But it is mostly because Azerion owns some of the inventories for sale and connects the DSP fee into their sales job, as publishers are paying as part of its network.

Universal ADS admits that its access to the lower Fee allows its ownership of Comcast. “Can this be a sustainable job if it’s not part of Comcast? Not really.” This was said by ADEXCHAGER regarding the new James Borow, Vice President of Products and Engineering for Universal Ads DSP with low fees launched by Comcast in January.

Comcast -ov Universal Advertisement does not charge a fee for DSP, he said, but Comcast wants Universal to bring more DTCs for E -TV on TV advertising. Also, the DSP is built at Comcast’s Freewheel, so publishers and emits in their advertisement still pay the SSP fee.

Viant, a one -off DSP and a public company, now advertises to index more on CTV than any other independent ad, currently more than 40% of their business. Viant refused to comment on the story.

But isn’t the TTD CTV DSP too?

The merchant table is aware that its large amount of data processing is an advantage – but also a cost.

In Linkedin publish In April, Green noted that TTD notices about 600 million impressions every 30 seconds, equal to the number of visual transactions per day. Swallowing all this information gives him a greater proportion and a more detailed target, he said.

“But of course, that has its problems,” Green admitted.

The scan of the entire Bidstream is that TTD won critical bakes, including Withdrawal of Walmart DSP Since Xandra 2020. Xandr Execs and other DSPs at the time grunt that the trade table was paid to skip algorithms to filter SSP supplies, thus reaching more overall people with lower rates.

However, the cost of recording data and currently cross-referenced Tables 1,7 Trillion of the Path (Based on Green’s claim of 600 million impressions in 30 seconds), it is difficult to bear, especially when video and CTV impressions do not carry the same cost of costs. And today fewer advertisers use the target and attribution of cookies to decide their DSP of your choice.

The trade table also tries to increase CTV as the total share of its media. In his earning report in February, Green said that the video segment (which TTD does not post in more detail) is now in the share of 40% in the total number. But this includes a lot of online videos, mobile videos and other various video stocks, such as digital outside the home.

Piranhe or mosquitoes?

Pure-Play program companies like Viant and Pontiac DSP did not really fall into the market table of a trade table, even if they choose clients and make a living.

It’s worth asking: Are these legitimate challengers TTD?

Last year, TTD’s revenue was $ 2.45 billion, up to $ 289 million.

When Viant reported earnings in February, he boasted a 30%growth, adding a total of about $ 76 million with his 2024 revenue. It’s a big growth rate, but the trade table added $ 500 million in 2024.

The merchant table also has a big target on the back because it is practically only goal.

As Gooberman noted, Amazon can compete for the CTV dollars, but does not have the same type of program advertisers: someone trying to have a clearer line of supply chain with PMP operators like Magnita or Index Exchange. The Amazon advertiser often uses DSP as an extension of his Amazon search strategy, he said, and these budgets are not ready to install independent DSPs.

For Pontiac DSP, Goobman said there are many advertisers who still want their campaigns to be filtered through an agnostic platform to buy, instead of relying on campaigns that have served self-admitted to the media owners.

“These are all talk about trade,” he said. “Just with a lower price.”