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The Trade Desk Forays into China with Advertising Platform
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The Trade Desk (TTD - Free Report) is ramping up its efforts in a bid to expand its footprint globally. This is evident from its recent announcement of launching programmatic ad-buying platform in China.
Notably, programmatic advertising is the automated buying and selling of online advertising. The company’s foray into China will enable marketers to leverage Trade Desk’s platform to locate and target audiences and accordingly optimize pricing across markets and devices.
The Trade Desk launched a beta version for programmatic advertising in China in 2018 and was successful in targeting audiences in various sectors including hospitality, luxury retail, education, food, beverage and biotech.
The company’s clients can tap into China using the same platform that they use for the rest of the world.
China: A Key Growth Market
According to China Internet Network Information Center (CNNIC), the country has 829 million Internet users. The new statistic takes Internet adoption in the country to 98.6%, with 817 million people reportedly being mobile Internet users.
The country boasts 20% of the world's Internet users, which implies that there is huge opportunity for global brands looking to expand their customer base.
Further, per study conducted by Forrester Consulting on behalf of The Trade Desk, 92% of the global marketers believe China can aid in fueling the top line of their business.
Management stated on its fourth-quarter earnings call that burgeoning middle class in China is consuming digital media primarily from mobile and (Connected TV) CTV channels. Notably, the robust growth of Trade Desk’s CTV platform, which grew nine times year over year, is making the platform more attractive to advertisers in Asia.
However, China has been very sensitive regarding Internet use over the years. The Chinese government imposed significant restrictions on social-media giants by blocking popular websites such as Twitter , Alphabet (GOOGL - Free Report) owned YouTube and Facebook .
Regulations related to direct advertising and continuing decline in macroeconomic conditions in China may be a concern for The Trade Desk. Notably, following the announcement of the news, shares have tanked 3.6% in the last trading session.
In a bid to make it convenient for global brands to run their ads efficiently in the Chinese market, The Trade Desk has partnered with China-based media platforms.
The partnership includes the likes of Baidu’s streaming service iQIYI, Tencent’s marketing solution and Alibaba's video streaming service - Youku.
Notably, Tencent Marketing Solution's chief data strategy officer, Benson Ho, stated that The Trade Desk's "independence, objectivity, and global reach" were the reasons that influenced them to form this partnership with the company.
Further, The Trade Desk also announced integrations with leading data, brand safety and anti-fraud partners including AdBug, Oracle Data Cloud, and RTB Asia. We believe such integrations will aid the company in building trust and assuring advertisers of data safety in China.
The Trade Desk is rebuilding its infrastructure in China and routing its Internet differently so that that it does not violate any regulations. Further, Trade Desk’s CEO Jeff Green stated that China is a long term-investment and the company will accelerate spend in the country gradually.
The company’s above-mentioned measures prove that China is an important market that is expected to help in fueling its top line growth.
The Trade Desk currently carries a Zacks Rank #4 (Sell).
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Image: Bigstock
The Trade Desk Forays into China with Advertising Platform
The Trade Desk (TTD - Free Report) is ramping up its efforts in a bid to expand its footprint globally. This is evident from its recent announcement of launching programmatic ad-buying platform in China.
Notably, programmatic advertising is the automated buying and selling of online advertising. The company’s foray into China will enable marketers to leverage Trade Desk’s platform to locate and target audiences and accordingly optimize pricing across markets and devices.
The Trade Desk launched a beta version for programmatic advertising in China in 2018 and was successful in targeting audiences in various sectors including hospitality, luxury retail, education, food, beverage and biotech.
The company’s clients can tap into China using the same platform that they use for the rest of the world.
China: A Key Growth Market
According to China Internet Network Information Center (CNNIC), the country has 829 million Internet users. The new statistic takes Internet adoption in the country to 98.6%, with 817 million people reportedly being mobile Internet users.
The country boasts 20% of the world's Internet users, which implies that there is huge opportunity for global brands looking to expand their customer base.
Further, per study conducted by Forrester Consulting on behalf of The Trade Desk, 92% of the global marketers believe China can aid in fueling the top line of their business.
Management stated on its fourth-quarter earnings call that burgeoning middle class in China is consuming digital media primarily from mobile and (Connected TV) CTV channels. Notably, the robust growth of Trade Desk’s CTV platform, which grew nine times year over year, is making the platform more attractive to advertisers in Asia.
However, China has been very sensitive regarding Internet use over the years. The Chinese government imposed significant restrictions on social-media giants by blocking popular websites such as Twitter , Alphabet (GOOGL - Free Report) owned YouTube and Facebook .
Regulations related to direct advertising and continuing decline in macroeconomic conditions in China may be a concern for The Trade Desk. Notably, following the announcement of the news, shares have tanked 3.6% in the last trading session.
The Trade Desk Inc. Price and Consensus
The Trade Desk Inc. Price and Consensus | The Trade Desk Inc. Quote
Trade Desk’s Measures in China
In a bid to make it convenient for global brands to run their ads efficiently in the Chinese market, The Trade Desk has partnered with China-based media platforms.
The partnership includes the likes of Baidu’s streaming service iQIYI, Tencent’s marketing solution and Alibaba's video streaming service - Youku.
Notably, Tencent Marketing Solution's chief data strategy officer, Benson Ho, stated that The Trade Desk's "independence, objectivity, and global reach" were the reasons that influenced them to form this partnership with the company.
Further, The Trade Desk also announced integrations with leading data, brand safety and anti-fraud partners including AdBug, Oracle Data Cloud, and RTB Asia. We believe such integrations will aid the company in building trust and assuring advertisers of data safety in China.
The Trade Desk is rebuilding its infrastructure in China and routing its Internet differently so that that it does not violate any regulations. Further, Trade Desk’s CEO Jeff Green stated that China is a long term-investment and the company will accelerate spend in the country gradually.
The company’s above-mentioned measures prove that China is an important market that is expected to help in fueling its top line growth.
The Trade Desk currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
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