The Trade Desk (TTD - Free Report) recently entered into an advertising partnership with Gojek, a technology platform, to launch the first online to offline (O2O) measurement solution in Southeast Asia.
The solution will enable clients to gain insight into the effectivness of their online advertising campaigns on offline sale.
The impact of online advertising will be measured using Gojek’s in-store purchase transactions instead of cookie-based data, correlating purchases made with Gojek with advertising done via the TTD platform.
The O2O measurement solution will initially be launched in Indonesia and is expected to be available in other Southeast Asian countries by the end of 2020.
Partnerships to Boost Top-Line Growth
The partnership is part of The Trade Desk’s focus on developing solutions that enable clients to identify the impact of advertising on sales. Notably, the company partnered with Atom Tickets in August 2019 to provide movie marketers with ticket sales insights.
The company has also been focused on expanding its international footprint by entering into partnerships. In March 2019, TTD partnered with China-based media companies like Baidu (BIDU - Free Report) , iQIYI (IQ - Free Report) and Tencent (TCEHY - Free Report) to launch its programmatic ad buying platform in the country.
The partnership with Gojek will allow The Trade Desk to gain a foothold in the Southeast Asian advertising market, which per Kenneth research data, quoted by marketwatch, is expected to witness CAGR of 13.9% between 2019 and 2026.
Moreover, Indonesia is poised to become the most dynamic advertising market in Southeast Asia due to its high mobile penetration rate.
This bodes well for the company as it is likely to acquire new subscribers in the region, which, in turn, will drive top-line growth.
Intense Competition in Digital Advertising Market
The Trade Desk is facing intense competition in the advertising market from the likes of Alphabet’s Google division and Facebook, who controlled 51% of the global digital ad market in 2019.
However, per CNBC, these companies do not provide advertisers with insights on how their ads are performing. They are also under regulatory scrutiny due to their unethical use of consumer data.
Thus, The Trade Desk’s focus on maintaining transparency is expected to help it counter competition in the digital advertising space.
The Trade Desk currently carries a Zacks Rank #4 (Sell).
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