With the average adult spending nearly seven hours a day online, it’s no surprise digital advertising is booming. Nowhere is that more true than in the U.S., the largest digital ad market in the world.
In 2024 alone, digital ad revenue in the U.S. hit $317 billion. Roughly $7.50 of every $10 in total ad spend went to digital. That number is expected to grow to $490 billion by 2029.
But spending is only half the equation. With competition across devices and platforms, advertisers are under pressure to ensure their budgets translate into results.
That’s where Trade Desk (TTD) comes in.
The California-based ad-tech firm is leaning hard into AI to help brands stretch every ad dollar through its proprietary media-buying platform, Kokai.
Launched in 2023, Kokai uses deep learning algorithms to optimize campaigns across 13 million ad impressions per second, analyzing in real time which placements offer the best bang for the buck.
And now it’s getting an upgrade.
Trade Desk this week unveiled Deal Desk, a new platform feature designed to bring more transparency and accountability to ad deals, especially for underperforming inventory.
The tool introduces Deal Quality Scores, letting advertisers evaluate the health of their ad buys and determine whether they’re better off going to the open market.
“The Trade Desk is committed to improving the supply chain for digital advertising on the open internet,” said Will Doherty, SVP of Inventory Development. “Deals have not kept pace with advances in AI and transparency that savvy media buyers and sellers have come to expect.”
Wall Street is taking notice
Citizens JMP reiterated its “Outperform” rating and $100 price target this week, citing Doherty’s comment at the IAB Tech Lab Summit that roughly 90% of Deal IDs sent to Trade Desk never scale, meaning just 10% drive most of the revenue.
The new feature, analysts said, could unlock underutilized inventory and help lift overall monetization.
BMO Capital also maintained its “Outperform” rating and $115 price target, pointing to the “enhanced granularity” of Kokai’s insights across devices and inventory.
In their view, Kokai offers a critical advantage for Trade Desk as digital ad spending continues to fragment.
Of the 36 analysts covering the stock, 23 rate it a “Strong Buy.”
Despite the bullish outlook, The Trade Desk stock is down 38.4% year-to-date and 21.5% over the past 12 months. Its market cap currently sits at $35.6 billion.
Your email address will not be published. Required fields are markedmarked