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Digital advertising placement firm Trade Desk shares soared 16% after Google said will delay phasing out third-party cookies.  $TTD has not been reliant on third-party cookies for years. Faster-growing segments such as connected TV (CTV) and mobile apps, use newer identity solutions such as TTD's United ID 2.0.

Trade Desk IPO

Trade Desk shares moved up +10.94 to $76.33 or +16% on Alphabet's news. Google (GOOG) announced it would delay phasing out third-party cookies until late 2023 from prior expectations of early 2022. 

Google's Chrome internet browser has over 60% of the global browser market share, its delay in removing third-party cookies is significant. It is important to note that TTD has not been relying on third-party cookies for a number years, so on that basis Google's decision does not have much effect on TTD's ability to grow. However perception is half the battle in the movement of stock prices.

Third-party cookies were invented in 1994 and are largely why the internet is mostly free to use. Data is king in 2021 and cookies store user's data, clicks, purchases and so on. This data allows advertisers to show relevant ads to a user across many different websites that they browse making it golden information for sellers. Companies derive revenue from the data by selling ad space.

United ID 2.0

TTD operates an exchange-like platform for advertisers to bid on digital ad space. This makes it crucial for advertisers to have as much data as possible to get the most out of buying ad space as prices can rise rather quickly.

TTD cites that only about 20% of data-driven ads rely on cookies. Faster-growing segments, such as connected TV (CTV) and mobile apps, use newer identity solutions such as TTD's United ID 2.0.

TTD worked out a few years ago that most individuals are forced to log in using email addresses. So it developed Unified ID 2.0 in 2018, which anonymizes email addresses and at the point of login requests that the user consent to having an anonymous ID created in exchange for relevant advertising. Unified ID 2.0 differs from traditional cookies in that it allows consumers to log in and monitor how their data is used. Furthermore third-party cookies were already removed from Apple's (AAPL) Safari browser and Microsoft's (MSFT) Edge browser last year.

It would appear that TTD would not be damaged materially if Google turned off third-party cookies today. With so much less internet usage reliant on cookies today, TTD has already built a solution that allows it to thrive no matter what big tech internet browsing companies decide.

TTD Revenue Sources

  • Connected-TV ad spending
  • Audio ad spending
  • Mobile ad spending

 

trading desk

 

About Trade Desk

Trade Desk operates a self-service internet-based platform that enables advertising buyers to create, manage, and optimize digital ad campaigns across multiple media and devices.

"The Trade Desk powers the most sophisticated buyers in advertising technology. Founded by the pioneers of real-time bidding, The Trade Desk has become the fastest growing demand-side platform in the industry by offering agencies, aggregators, and their advertisers best-in-class technology to manage display, social, mobile, and video advertising campaigns.

The Trade Desk empowers buyers at the campaign level with the most expressive bid capabilities in market, full-funnel attribution, and detailed reporting that illustrates the consumer journey from initial impression to conversion. By maintaining a pure buy-side focus, The Trade Desk delivers on branding and performance for clients worldwide"  From Trade Desk

Trade Desk competes with Google parent Alphabet $GOOGL and smaller companies such as AppNexus.

From The TradersCommunity Research Desk

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