The Trade Desk posted record-high quarterly revenue in Q3, attributing the growth to the continued embrace of data-driven advertising brought on by the novel coronavirus pandemic.
The demand-side platform earned $216 million in revenue, up 32% from Q3 of 2019. That uptick includes 100% growth in connected TV, a medium that saw a surge in usage as people stayed home and streamed content throughout the pandemic.
CEO Jeff Green said during the earnings call the company has gained more market share through the first three quarters of 2020 than in any other point in the company’s history.
“As advertisers come under pressure to prove the ROI of their campaigns, to take advantage of the mass consumer shift to streaming TV, and to consider alternatives to user-generated content, our investments in these areas are paying off,” Green said in a statement. “Whether it’s our focus on measurement capabilities, CTV inventory or the future of identity, advertisers can count on us as the industry’s most innovative and complete demand side platform.”
Other ad-tech companies have also boasted record highs as programmatic spending return to pre-lockdown levels, since marketers value the channel for the flexibility and efficiency it offers while facing uncertainty during the pandemic.
“Almost every marketer and every large brand is being asked to do more with less,” Green said during the earnings call. “And that means that advertisers have to focus on ad opportunities that are measurable and comparable, where the business ROI can be understood and proven.”
The Trade Desk has also been bolstering Unified ID 2.0, its identity offering to support targeted advertising when third-party cookies go away. It recently added Criteo, Nielsen and LiveRamp as partners in the initiative.
Green said he “firmly believes” Unified ID 2.0 will reach critical mass and adoption next year.
The company had initially projected Q3 revenue to reach between $177-$181 million. For Q4, it projects revenue to range between $287-$291 million, assuming there are no pandemic-related economic setbacks.
The Trade Desk will also significantly update its platform next year. Dubbed Solimar, Green said the update will include a better user interface that brings together customers’ buying and planning tools; and easier onboarding and deployment of first-party data.