How Amazon Is Transforming Programmatic Advertising

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On July 26, the Wall Street Journal first reported Amazon’s (AMZN) deal with demand-side platforms the Trade Desk and Dataxu TouchPoint. Advertisers and ad agencies will no longer be forced to purchase commercial time on Amazon’s CTV (connected TV) platform, Fire TV, through the company alone.

Instead, advertisers can now access Fire TV’s video inventory through private advertisement marketplace the Trade Desk and software company Dataxu TouchPoint. The market is celebrating the move for increasing transparency in the programmatic advertising space. It’s also providing content publishers with increased avenues for marketing and monetizing.

On August 6, the Wall Street Journal came out with another report highlighting certain limitations of the deal. Accordingly, the Trade Desk and Dataxu TouchPoint will have access to an inventory of around 40 video applications. However, the deal won’t give them access to commercial time on the video inventory sold by Amazon’s advertising arm, Amazon Publishing Services. The deal will also not provide the Trade Desk or Dataxu TouchPoint with access to customers’ shopping and behavioral data.

Despite these limitations, the Trade Desk’s CEO, Jeff T. Green, called the transaction a “breakthrough deal in Connected TV” on the company’s second-quarter earnings call. To learn more about the Trade Desk’s second-quarter earnings performance, read Why TTD Stock Is Down 4.0% Post-Earnings.

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