Open-web prediction by The Trade Desk forecasts ad spending trends on the global web.
The Open Web Shines Again, Thanks to The Trade Desk
Sun's out, rivals are down, and The Trade Desk is thriving! Q1 of 2025 paints a rosy picture for the ad-tech company. After a rocky Q4 in 2024, The Trade Desk smashed past expectations with revenue of $616m—a whopping 25% increase year-on-year.
In a nutshell, CEO Jeff Green attributes their success to the resilience of his team and the "massive shifts" that boosted the open Internet's prospects. Regulators are kicking Big Tech like Meta, Apple, and Alphabet, and Green believes this scrutiny will force them to ditch their "draconian" dominance tactics, fostering a healthier ecosystem—especially for supply-side platforms.
What's in store for these titans of tech? Green speculates they might eventually abandon attempts to milk the open web and focus on selling their own inventory through demand-side platforms in Google Search, YouTube, and Prime Video.
Google's move to phase out third-party cookie tracking—while not affecting The Trade Desk much—doesn't go unnoticed. Green sees it as a step in the right direction, validating their vision of the future.
Macro challenges may linger, but Green insists the open internet is enjoying its best days in quite a while. Of course, his optimistic outlook has its incentives—The Trade Desk has built its empire on the open web. Nevertheless, he's got some solid ammo for his case.
Courts ruling Google a monopoly in search and online advertising? Check. Another decision forcing Apple to let app developers contact users directly, bypassing the App Store? Check. Even Apple executive Eddy Cue's testimony about Google searches on Safari declining? double check.
These developments aren't the endgame for walled gardens, though. Even if they struggle, will the open web truly flourish? According to mobile advertising expert Eric Seufert, most e-commerce companies avoid the open web since it's filled with "junk." It's only enterprise companies that fund this corner of the internet via agencies.
Seufert isn't denying the open web's value; instead, he highlights natural selection—valuable content tends to get walled off. Green's optimistic outlook for the open web doesn't apply to the same definition as Seufert, though. While Seufert sees the open web as ungated, non-proprietary content, Green points to retail media and CTV—two promising areas for The Trade Desk.
Intriguingly, these aren't typical open-web concepts. Either way, Green might be onto something. The open web might not be the same as it once was, but it's undoubtedly changing for the better.
Featured Image by Aaron Burden on Unsplash
Insights from Enrichment Data:
- Impact of AI on Content Creation: AI is revolutionizing content creation, management, and even influencer marketing.
- AI Optimization of Search Results: AI is being used in search engines to provide more comprehensive and accurate answers, potentially impacting organic traffic.
- Short-form Video Dominance: Short-form videos are popular and effective for capturing audience attention and driving engagement.
- Privacy and Data Challenges: Walled gardens face challenges related to data privacy and collection limitations, which can impact targeted advertising efforts.
- Rise of Decentralized Solutions: The open web is seeing a rise in alternative platforms and decentralized solutions offering users more control over their data and providing advertisers with diverse reach options.
- Stability in Paid Ad Space: After a volatile year, paid advertising is trending towards stability, with strategies focusing on high-performing campaigns instead of cheap clicks.
- Increased Focus on Data Privacy: Regulators are cracking down on data privacy issues, and advertisers must adapt to ensure compliance.
- Decentralized Platforms: As an alternative to traditional walled gardens, decentralized platforms are emerging on the open web, offering opportunities for advertisers to reach audiences without relying on dominant players.
- AI Integration: AI will continue to play a crucial role in optimizing advertising strategies across different platforms, improving personalization, and efficiency in targeting audiences.
- In the realm of business, The Trade Desk's success in Q1 of 2025 is attributed to the resilience of their team and the "massive shifts" that boosted the open Internet's prospects, as regulators are imposing stricter regulations on Big Tech companies like Meta, Apple, and Alphabet, which may force them to abandon their dominant tactics.
- The media landscape is witnessing a shift towards decentralized solutions, as the open web is seeing a rise in alternative platforms offering users more control over their data, providing advertisers with diverse reach options.
- The impact of AI on content creation is profound, as it is revolutionizing content management, influencer marketing, and even ad optimization in search engines, potentially impacting organic traffic.
- In the health and finance sectors, increased focus on data privacy is a primary concern for advertisers, as regulators are cracking down on these issues, and advertisers must adapt to ensure compliance with these new regulations.
