The Trade Desk says advertisers have been returning and reactivating campaigns as the industry climbs out of the economic trough caused by the pandemic.
The data-driven advertising company reported a 12.9% fall to $US139.4 in revenue for the second quarter, better than market expectations.
However, Connected TV spend grew 40% compared to the same three months last year, Mobile Video was up 15% and Audio about 20%.
Founder and CEO Jeff Green says most advertisers have returned with new approaches and new creatives since the low point in mid-April.
“They realise that as markets reopen, they have a unique opportunity to gain share,” he told a briefing of analysts.
“Many paused in mid- to late March and even early April, but some advertisers in all categories have seen this as an opportunity to gain share.
“To do that, they've had to be more flexible and agile than ever. As markets open in different ways at different rates even within the same country, they are under pressure from their CFOs to prove the value of every advertising dollar, forcing them to prioritise advertising that is measurable and comparable.
“And they are dealing with a consumer base that is rapidly shifting away from traditional linear television.
“All of this puts data-driven advertising in the front seat, and we saw this reflected in our performance throughout the second quarter.”
Green says spend has increased on the platform every month since April and nearly every consecutive week.
Ad spend turned positive on a year-over-year basis in mid-June and that trend continued in July.
Green is surprised how unified the early phases of recovery have been so far.
“Not just that advertisers have returned in a consistent way with a renewed focus on programmatic, in fact, nearly all of the large brands have increased their spend on our platform,” he says.
“This includes spend from industries such as CPGs, food and beverage, technology, healthcare and even automotive.”
In the third quarter, The Trade Desk anticipates that the connected TV spend growth rate will more than double that of the scorn quarter.
“We believe the COVID pandemic has permanently accelerated the growth of connected television, changing the TV landscape forever,” says Green.
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