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The Trade Desk will start undercutting the fees publisher adtech firms tack on to digital ads. The adtech used by publishers often inaccurately prices their inventory, said a Trade Desk exec. Adtech firm The Trade Desk is about to execute a plan to lower the price advertisers pay for digital ads. The Trade Desk operates software called a "demand-side platform" that advertisers use to buy ads across the internet. While other DSPs occasionally send low-ball bids, publishers might be more willing to look at The Trade Desk's bids due to the large amount of advertisers using its platform.
Persons: SSPs, Will Doherty, Doherty, Chris Kane, Adam Soroca, aren't Organizations: Google, Jounce Media, Trade
Besides YouTube's 2.6% first quarter ad revenue decline, Google is facing multiple challenges to its advertising business. While Google's search revenue was up about 2%, Microsoft is in the early stages of a big play to go after it. Matthew Bailey, principal analyst at research firm Omdia anticipates Google will post digital ad revenue growth at around 5% in 2023 and in 2024. Google's monolithic search ads business is starting to see real competitionMost of Google's ad revenue is driven by its ubiquitous search engine. But Amazon, which has a $31 billion ad business, and Walmart, which has a $2.7 billion ad business, grab roughly 80% of retail ad spend.
Google's monolithic search ads business is starting to see real competitionMost of Google's ad revenue is driven by its ubiquitous search engine. But neither pose the threat to Google's search dominance that ChatGPT-powered Bing does today, according to an agency source. But ChatGPT-Bing has a bigger opportunity to grab budgets earmarked for Google search because it will change the entire way consumers search for information. But Amazon, which has a $31 billion ad business, and Walmart, which has a $2.7 billion ad business, grab roughly 80% of retail ad spend. Morgan Stanley recently estimated that adtech firms are poised to win $26 billion out of a $130 billion retail media market by 2025.
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