The Trade Desk, Inc. · NASDAQ:TTD
The Trade Desk — Investor Day (March 2019)
40 slides from The Trade Desk's investor day presentation, Mar 6, 2019
Slide 1: Forward looking statements and Non-GAAP Financials
Forward looking statements and Non-GAAP Financials This presentation is for informational purposes only and is not an offer to sell securities or a solicitation of an offer to buy any securities, and may not be relied upon in connection with the purchase or sale of any security. This presentation is
Slide 2: Brian Stempeck, Chief Strategy Officer
Brian Stempeck Chief Strategy Officer
Slide 3: Customer Relationships and CTV
Customer Relationships and CTV
Slide 4: Organizational Structure – Chief Strategy Officer
Organizational Structure – Chief Strategy Officer CEO CTO CSO COO CFO Data Inventory TV Technical Sales Partnerships Partnerships Partnerships Account Managers 4
Slide 5: Land, expand and enable
Land, expand and enable 60% 40% Large Agencies Midsize Agencies Enterprise API
Slide 6: Our relationship with agencies is deepening
Our relationship with agencies is deepening New Users by Year 1,400 1,253 1,200 985 1,000 800 600 503 400 204 200 114 6 20 40 0 2011 2012 2013 2014 2015 2016 2017 2018 Source: TTD customer example
Slide 7: Programmatic eclipsing direct spending
Programmatic eclipsing direct spending Allocation of Digital/Mobile Advertising Average Percent 51% 46% 56% Direct with Online Publisher Programmatic 49% 54% 44% 2016 2017 2018 Q: What percent of your digital/mobile advertising spend went to each last year (2016)? How much are you allocating to each
Slide 8: We are deepening our relationships with clients
We are deepening our relationships with clients Trader Planner Investment Lead TV Buyer VP Media
Slide 9: Our teams coordinate globally with large brands
Our teams coordinate globally with large brands BOULDER TORONTO PARIS LONDON SEOUL DENVER SHANGHAI SEATTLE HAMBURG MADRID CHICAGO SAN FRANCISCO TOKYO HONG KONG NEW YORK VENTURA SINGAPORE LOS ANGELES 150 634 employees JAKARTA employees 160 SYDNEY employees
Slide 10: Let's go beyond the headlines with in-housing
Let’s go beyond the headlines with in-housing
Slide 11: What does "in-house" really mean?
What does “in-house” really mean? The Student The Center of Excellence The True In-houser
Slide 12: Marketers primarily use agencies for programmatic media buying
Marketers primarily use agencies for programmatic media buying How Programmatic Media-Buying Is Conducted Percent of Marketer Respondents Use an Use agency internal trading media desk team 22% 29% Use ad agency to handle business… Q: For programmatic media-buying, which of the following ways do you
Slide 13: In-housing is not binary
In-housing is not binary Transparency Better Performance Tech Integration Custom Insights Rapid Response Marketing
Slide 14: Engagement models we support
Engagement models we support MOST COMMON LEAST COMMON Agency owns Agency owns Consulting firm Brand owns Brand owns contract with contract with or programmatic contract with TTD contract with TTD and TTD, manages specialist owns and has agency TTD and manages manages campaigns, and contract with or
Slide 15: We're providing specialized service to our clients
We’re providing specialized service to our clients Sales Account Manager Client Trader Technical Account Manager Solutions Architect Partnerships Teams
Slide 16: How are clients building to our platform?
Reporting How are Insights clients building to Workflow our Automation platform? Data visualization Build own algorithms Integrate sales signal
Slide 17: Our partnerships team helps measure results
Our partnerships team helps measure results • Gross Rating Point Sales • Viewability Foot traffic • Click Through Rate Media mix model or econometrics • On Target Percentage • Reach Awareness/launch/consideration
Slide 18: Our story in CTV is resonating
Our story in CTV is resonating You are missing out on a core audience if you’re only buying broadcast TV.
Slide 19: Streaming is Mainstream
Streaming is Mainstream 75% of U.S. households have at least one OTT device. Sources: https://www.multichannel.com/blog/study-74-u-s-tv-homes-have-at-least-one-connected-tv-device
Slide 20: Cable subscriptions are still big, but declining fast
Cable subscriptions are still big, but declining fast Pay TV Penetration 90% 88% 86% 84% 82% “The rate of consumers dropping their 80% cable and satellite TV packages hit the highest level ever in the last three 78% months of 2018.” 76% – Fortune Magazine, Feb. 2019 74% 1998 2000 2002 2004 2006 2008
Slide 21: Connected TV is here and now
Connected TV is here and now Average time spent per day with video by adults, by device, 2011-2017 (hours: mins) 6:00 4:48 0:20 0:35 0:46 0:54 1:02 1:08 1:12 3:36 2:24 4:34 4:38 4:31 4:22 4:11 4:03 3:58 1:12 0:00 2011 2012 2013 2014 2015 2016 2017 TV Digital video devices* TODAY: 1 in 5 hours 2021:
Slide 22: Our reach is HUGE
Our reach is HUGE 80 million 120 million households CTV devices Source: The Trade Desk CTV Graph numbers, August 2018
Slide 23: Find unreachable audiences
Find unreachable audiences Reach cord cutters and cord nevers when they’re consuming content on the big screen. Linear TV Combined Linear CTV-only 41% of individuals reached through The Trade Desk on + CTV Connected TV (CTV) were unique and not reached by ads on linear TV. Source: The Trade Desk int
Slide 24: Decisioning improves TV buying
Decisioning improves TV buying Traditional TV Buying Connected TV buying $10 CPM $20 CPM Targeting is limited to DMA, schedule 1:1 targeting of valuable customers and dayparts & their households in real time
Slide 25: CTV vs. Linear
See Results with CTV CTV vs. Linear Results of Additional Nielsen OTT studies CTV Results 2X higher on-target percentage Linear Results 4X higher frequency These results show that CTV is more effective in frequency capping and maximizing unique reach. Source: The Trade Desk internal aggregate reach
Slide 26: Measure your cost per unique household reach
Measure your cost per unique household reach Sources: Parks Associates, September 2016; eMarketer, September 2016; Nielsen, 2016
Slide 27: Auto Intender / Not a Fit audience targeting
Auto Not a Not a Intender Auto Fit Fit Not a Intender Fit Not a Not a Auto Fit Auto Fit Intender Not a Intender Fit
Slide 28: With traditional TV, your reach cost might be lower…
LINEAR LINEAR LINEAR $1 LINEAR $1 $1 LINEAR $1 $1 LINEAR LINEAR LINEAR $1 LINEAR $1 $1 LINEAR $1 $1 With traditional TV, your reach cost might be lower…
Slide 29: … but you're wasting it on the wrong targets…
Auto Not a Not a Intender Auto Fit Fit Not a Intender Fit Not a Not a Auto Fit Auto Fit Intender Not a Intender Fit … but you’re wasting it on the wrong targets…
Slide 30: … and frequency is impossible to control
LINEAR LINEAR LINEAR $1 $1 LINEAR $1 $1 LINEAR LINEAR LINEAR LINEAR LINEAR $1 $1 $1 $1 $1 LINEAR $1 LINEAR LINEAR LINEAR $1 $1 LINEAR $1 LINEAR $1 LINEAR $1 $1 LINEAR $1 LINEAR LINEAR $1 $1 LINEAR … and frequency is $1 impossible to control
Slide 31: Spend smarter with CTV
Auto Not a Intender Auto Not a $2 Fit Fit Not a Intender $2 Fit Not a Auto Not a Auto Intender Fit Fit Not a Intender $2 Fit $2 Spend smarter with CTV
Slide 32: Auto Intender linear vs CTV cost comparison
LINEAR LINEAR LINEAR LINEAR $1 $1 $1 $1 Auto Intender $2 LINEAR LINEAR LINEAR LINEAR $1 $1 $1 $1 Auto Intender $2 LINEAR LINEAR LINEAR LINEAR $1 $1 $1 $1 Auto Intender $2 LINEAR LINEAR LINEAR LINEAR $1 $1 $1 $1 Auto Intender $2 LINEAR LINEAR LINEAR LINEAR $1 $1 $1 $1
Slide 33: Connected TV outperforms user-generated content (UGC) platform
CASE STUDY Connected TV outperforms user-generated content (UGC) platform A global web services company ran a CTV campaign to compare results vs a UGC video platform: • Focused on cost efficiency and audience engagement on premium inventory • CTV campaign outperformed by 2X • CTV campaign resulted i
Slide 34: Connected TV Measurement
Connected TV Measurement Measure and analyze the impact of your Connected TV campaigns to inform future strategies. TV & Cross-Platform Metrics and Reporting Key Reporting Metrics Include: • Report across video • Video Completion Rates screens (OTT, • Audience Reporting desktop, mobile) • Nielsen GR
Slide 35: Tie offline sales to Connected TV
Tie offline sales to Connected TV Measure the impact of Connected TV on sales lift. Track exposure to your TV commercials and tie it to offline sales. Offline Measurement with The Trade Desk
Slide 36: Retail giant drives offline store visits with CTV
CASE STUDY Retail giant drives offline store visits with CTV Approach • Ran high-impact ads with premium CTV content • Retargeted existing customers and incorporated new audience discovery strategies • Optimized campaign performance using in-store visit conversions from Factual Results The Story The
Slide 37: Connected TV Success Story
CASE STUDY Connected TV Success Story Approach • National automotive brand • Built proprietary audience of car shoppers with 1st party data and 3rd party data to • Focused on key geographies Results • Maximized reach and frequency with their The Story custom audience An automotive brand wanted • Cos
Slide 38: Programmatic is now impacting the TV upfronts
Programmatic is now impacting the TV upfronts 2019 Upfronts • Brands and agencies typically transact billions during annual upfront negotiations • Large agencies and brands are now requiring programmatic access as part of their guaranteed spend • Example: Brand signs $100M commitment to a network; $
Slide 39: Connected TV spend increased over 9X
Connected TV spend increased over 9X FY 2018 over FY 2017
Slide 40: Thank You
Thank You © theTradeDesk . Investor Day