Trade Desk's Market Share Faces Pressure from Amazon
The Trade Desk Inc., a leading demand-side advertising platform (DSP), faces growing pressure from Amazon and other data-rich competitors, according to Morningstar. The firm's analyst, Matthew Dolgin, expects TTD's market share to decline from nearly 2% to about 1.2% by 2034 as competition increases.
Amazon's DSP is gaining traction with ad agencies due to its ability to combine advertising business with information generated through Amazon's marketplace and other consumer services. This gives Amazon's platform access to behavioral signals that TTD does not directly own, putting pressure on TTD's take rate.
Dolgin estimates the digital advertising market at roughly $800 billion today and expects it to reach $1.5 trillion by 2035. However, he expects TTD's share to fall due to rising competition from Amazon and other data-rich platforms.