Future Prospects of The Trade Desk: Three Facilitating Factors for Investors to Give Serious Consideration

Investment Opportunities for The Trade Desk Over the Next Decade: Key Factors for Financial Backers to Prioritize

The Trade Desk, a leading independent demand-side platform (DSP), is poised to capitalise on three of the fastest-growing areas in digital advertising: Connected TV (CTV), retail media, and international expansion.

With the global digital ad spend expected to reach $1.1 trillion by 2025, approximately two-thirds of which is projected to come from outside the U.S., the international market presents a significant opportunity for growth for The Trade Desk. Currently, the company's international revenue accounts for only 12% of its total, indicating a vast room for expansion.

The Trade Desk has already established a presence in numerous international markets, including China (through partnerships with Alibaba, Baidu, and Tencent) and India. The company's independent status allows it to act as a bridge, helping advertisers access premium streaming inventory across multiple publishers, including Walt Disney (Disney+ and Hulu) and Netflix.

The U.S. CTV ad spend is projected to climb from $30 billion in 2024 to nearly $40 billion by 2027. Grand View Research anticipates that the global CTV market will grow from $268 billion in 2024 to $531 billion by 2030. The Trade Desk's Unified ID 2.0 initiative gives it a strong position as advertisers demand more transparency and interoperability in CTV.

Retail media, another fast-growing channel in the advertising industry, places ads directly on retailer websites and apps, reaching customers at the moment of purchase. GroupM estimates that the global retail media market will reach $177 billion in 2025 and is likely to continue growing in the next decade.

As the leading independent DSP, The Trade Desk doesn't need to win every battle to succeed; it simply needs to remain the trusted alternative to walled gardens. The company provides a solution for unifying campaigns across multiple streaming platforms, addressing the growing need among advertisers for a single tool to optimise their spending in the era of multiple streaming platforms.

For patient investors, it's worth keeping an eye on The Trade Desk as it navigates changes in its external environment and improves its operations. The company's long-term growth picture is clear, with potential for growth up to $25-$28 billion by 2028, which could positively impact investors by strengthening the company's global competitive position and increasing shareholder value.

In conclusion, if The Trade Desk can replicate its U.S. success abroad, the opportunity could dwarf its domestic business. Capturing a small share of global ex-U.S. ad spend could add tens of billions in potential revenue capacity for The Trade Desk, making it an attractive investment opportunity for those looking for growth in the digital advertising sector.