SANTA MONICA, Calif. — For a decade, this fast-moving industry was relatively stable.
Now new entrants, new business models and new regulatory considerations are changing the game for how advertisers can meet their audiences.
In this video interview with Beet.TV, Jake Richardson, Director, TV Partnerships, The Trade Desk, explains how he sees recent shifts ushering-in new strategic considerations for ad buyers.
Richardson says there had been a decade-long “duopoly” in digital ads, with Google owning search and Facebook owning social.
Now, consumer behavior is splintering off into many new kinds of apps and services.
“There’s hundreds of people that are entering this space … there just wasn’t any competition before,” Richardson says. “It’s not necessarily that Google’s in a tight spot, and so the market’s in a tight spot, it’s that Google’s finally competing and that’s actually healthy for the economy.
“It makes really, really hard and challenging for advertisers. You’ve got tonnes of different places that people are going to find different content.”
It isn’t just new entrants that mean new considerations for advertisers.
With the likes of Netflix and Disney+ adding ad-supported tiers, there are significant new pools of inventory opening up. Disney+ has previously adopted UID2, the open-source identity framework, initially pioneered by The Trade Desk.
“We’re going to see a lot of pressure in that marketplace,” Richardson says. “You’ve now got a lot of pressure for them publishers to deliver exactly what it is that advertisers are looking for.”
All that will be happening as the economy turns down – an indicator that usually goes hand-in-hand with declining advertiser spend.
But The Trade Desk’s Richardson suggests still-improving digital advertising capabilities are tempting ad buyers not to pull back.
“As advertisers start to batten the hatches, the places that they’re looking to cut from are the places where they’ve traditionally over-indexed or spent a lot,” he says.
“The places they’re looking to drive more spend into would be places where they see that they’re getting performance and a lot of efficiency.”
You are watching coverage of Beet Retreat Santa Monica 2022, presented by Ampersand, MiQ, Nielsen, PubMatic, T-Mobile Advertising Solutions and The Trade Desk. For more videos from the Beet Retreat, please visit this page.