The Trade Desk (TTD) is at the forefront of digital advertising’s shift toward connected TV (CTV), with video revenue, including CTV, constituting about 50% of the business in the latest quarter. The company is leveraging its programmatic advertising capabilities as advertisers increasingly transition budgets from less measurable channels to CTV, aiming to streamline ad buying and measurement.
As part of this strategy, TTD is employing artificial intelligence tools, including Kokai and Agentic AI, to enhance outcome measurement and has reported broad adoption among clients. The company’s efforts in the supply chain, such as the OpenPath initiative, are designed to maximize transparency and create a more direct marketplace for publishers, with a 4.5% publisher fee that supports profitability while enhancing data access.
Despite strengths in CTV and audio advertising, TTD faces challenges in sectors like consumer packaged goods and automotive, which have been softer due to economic pressures. The company’s adjusted EBITDA margins for 2026 are anticipated to align with 2025 as they invest in AI and infrastructure improvements. Ending 2025 with $1.3 billion in cash and no debt, TTD is well-positioned for capital returns while navigating an evolving digital landscape.
