The Trade Desk's Q1 2025: Unpacking Contradictions in Google's Strategy, CTV Dynamics, and Market Trends

Google's open internet strategy, CTV market dynamics and fragmentation, Amazon's DSP strategy and competition, open internet trends and brand spending, Google's business focus and market implications are the key contradictions discussed in The Trade Desk's latest 2025Q1 earnings call.



Strong Revenue Growth Despite Uncertainty:
- The Trade Desk reported revenue of $616 million for Q1 2025, marking a 25% year-over-year increase.
- Despite increasing macroeconomic uncertainty, the growth was driven by the company's resilience and ability to grow significantly faster than the broad digital marketing industry.

Kokai Platform Adoption and Performance:
- Around two-thirds of The Trade Desk's clients are now using the Kokai platform, ahead of schedule.
- Kokai has demonstrated exceptional campaign performance improvements, including a 42% reduction in cost per unique reach and 24% lower cost per conversion.

Technological Upgrades and Infrastructure:
- Numerous engineering upgrades have been implemented, including over 100 scrums shipping product weekly and significant improvements in product and go-to-market teams.
- These changes have enhanced campaign performance and contributed to the company's strong quarterly results.

Impact of Legal Verdicts on Market Dynamics:
- Google has been found guilty in multiple antitrust cases, including recent verdicts in the U.S., which may lead to a more level playing field in the ad market.
- These verdicts are expected to reduce Google's dominance and improve competition, benefiting The Trade Desk and other open internet participants.

CTV and Open Internet Growth:
- Connected television (CTV) remains the largest and fastest-growing advertising channel for The Trade Desk.
- The increased supply dynamics in CTV and the move towards more buyer-friendly market dynamics are expected to create a better ad-funded television experience for consumers.