Advertisers are shifting millions of dollars in ad budgets, particularly in connected TV (CTV), from The Trade Desk’s demand-side platform (DSP) to Amazon’s. Key reasons include lower fees, improved user interface, greater measurement visibility, exclusive live sports, Prime Video’s growing reach, and a more collaborative partnership model.
One global auto brand moved approximately $80 million in annual ad spend from The Trade Desk to Amazon’s platform by the end of Q1, according to an adtech executive familiar with the deal, speaking anonymously to protect industry relations. Part of the reason for the move is that the brand can now sell its cars on Amazon.
A second global tech brand redirected nearly $5 million of ad spend for a single campaign to Amazon’s DSP, but continues to spend with The Trade Desk, the source said. While The Trade Desk’s technology is effective, Amazon has been aggressively building out its tech stack, they added.
At PMG, 80% of clients have shifted tens of millions in CTV budgets to Amazon’s DSP over the past year, money that was previously going to The Trade Desk, said Mike Treon, PMG’s head of CTV and video strategy.
“At a time where budgets aren’t growing significantly across the board, [Amazon’s gain] does come at the cost of some of the incumbent folks,” Treon said.
Amazon’s ad revenue grew 18% year-over-year to $13.9 billion in Q1. The Trade Desk, meanwhile, reported a 25% YoY increase, generating $616 million in the same quarter.
A spokesperson at The Trade Desk said the company has seen “solid growth” and is “growing faster than Amazon,” citing its Q1 earnings. “Amazon can offer very cheap reach because it directs advertiser demand to its own platform, notably Amazon Prime. TTD doesn’t own or operate any media, so our value proposition to clients is very different, [helping] advertisers objectively decide between all ad impressions on the open internet,” they said.
Some buyers are cautious about Amazon prioritizing its own inventory, but others are enticed by its unique access.
