{"id":274895,"date":"2025-06-05T12:23:01","date_gmt":"2025-06-05T12:23:01","guid":{"rendered":"https:\/\/peraltafinancing.com\/advertising\/marketers-move-millions-in-ad-spend-from-the-trade-desk-to-amazons-ad-platform\/"},"modified":"2025-06-05T12:23:01","modified_gmt":"2025-06-05T12:23:01","slug":"marketers-move-millions-in-ad-spend-from-the-trade-desk-to-amazons-ad-platform","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=274895","title":{"rendered":"Marketers Move Millions in Ad Spend from The Trade Desk to Amazon\u2019s Ad Platform\u00a0"},"content":{"rendered":"


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Advertisers are shifting millions of dollars in ad budgets, particularly in connected TV (CTV), from The Trade Desk\u2019s<\/a> demand-side platform (DSP) to Amazon\u2019s. Key reasons include lower fees, improved user interface, greater measurement visibility, exclusive live sports, Prime Video\u2019s<\/a> growing reach, and a more collaborative partnership model.<\/p>\n

One global auto brand moved approximately $80 million in annual ad spend from The Trade Desk to Amazon\u2019s platform by the end of Q1, <\/em><\/strong>according to an adtech executive familiar with the deal, speaking anonymously to protect industry relations. Part of the reason for the move is that the brand can now sell its cars on Amazon.\u00a0<\/p>\n

A second global tech brand redirected nearly $5 million of ad spend for a single campaign to Amazon\u2019s DSP, but continues to spend with The Trade Desk, the source said. <\/em><\/strong>While The Trade Desk\u2019s technology is effective, Amazon has been aggressively building out its tech stack, they added.<\/p>\n

At PMG, 80% of clients have shifted tens of millions in CTV budgets to Amazon\u2019s DSP over the past year, money that was previously going to The Trade Desk, said Mike Treon, PMG\u2019s head of CTV and video strategy.<\/p>\n

\u201cAt a time where budgets aren\u2019t growing significantly across the board, [Amazon\u2019s gain] does come at the cost of some of the incumbent folks,\u201d Treon said.\u00a0<\/p>\n

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Amazon\u2019s ad revenue grew 18% year-over-year<\/a> to $13.9 billion in Q1. The Trade Desk, meanwhile, reported a 25% YoY increase<\/a>, generating $616 million in the same quarter.<\/p>\n

A spokesperson at The Trade Desk said the company has seen \u201csolid growth\u201d and is \u201cgrowing faster than Amazon,\u201d citing its Q1 earnings. \u201cAmazon can offer very cheap reach because it directs advertiser demand to its own platform, notably Amazon Prime.\u00a0TTD doesn\u2019t own or operate any media, so our value proposition to clients is very different, [helping] advertisers objectively decide between all ad impressions on the open internet,\u201d they said.<\/p>\n

Some buyers are cautious<\/a> about Amazon prioritizing its own inventory, but others are enticed by its unique access.<\/p>\n

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A first media buyer at an agency, who spoke on the condition of anonymity, said 30% of its clients shifted a bulk of their CTV and display budgets from The Trade Desk to Amazon, particularly around Thursday Night Football. <\/p>\n

A second media buyer at an agency, speaking anonymously to preserve industry relations,<\/em> said 30% of the agency\u2019s clients shifted 100% of their total annual ad budgets from The Trade Desk to Amazon in the past six months. Last year, only 10% of the agency\u2019s clients moved budgets. The source wouldn\u2019t share exact figures.\u00a0<\/p>\n

Over 40 brands at Tinuiti have increased their budget on Amazon DSP by 12% collectively as of Q1 this year, according to Elizabeth Marsten, vp, commerce innovation. In Tinuiti\u2019s case, this spend was moved from several DSPs, including The Trade Desk.<\/p>\n

Flexibility in inventory access and deal terms \u00a0<\/strong><\/h4>\n

ADWEEK spoke to nine sources for this story and most said that it appeared to them as if Amazon had been making a play to lure The Trade Desk\u2019s clients, partly because the DSP has been offering lower prices and improving its tech stack. Part of Amazon\u2019s appeal has long been that buyers can use its DSP to buy across third-party CTV inventory, beyond Amazon\u2019s owned-and-operated (O&O) properties.<\/p>\n

An Amazon Ads spokesperson referred ADWEEK to a blog post<\/a> and said it is giving \u201cadvertisers the control to choose where ads are delivered whether that be APD, third-party exchanges or any combination in between. Advertisers can even exclude Amazon properties if desired.\u201d <\/p>\n

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According to Karsten Weide, principal and chief analyst, W Media Research, advertisers and agencies are moving budgets from The Trade Desk to Amazon\u2019s DSP, particularly for CTV and cost-sensitive campaigns. \u201cAmazon\u2019s DSP market share has been bigger than The Trade Desk\u2019s for a few years now,\u201d he said. \u201cHowever, both companies are still growing market share, so Amazon\u2019s market share gain has not come at the expense of The Trade Desk\u2019s share.\u201d<\/p>\n

Still, some buyers have other reasons for switching DSPs. A third media buyer at an agency pointed to a lack of flexibility in The Trade Desk\u2019s upfront deals, which require brands to commit to minimum monthly spend thresholds\u2014this amount varies by brand. However, if a brand doesn\u2019t meet the required monthly media spend, they still need to pay a baseline platform fee, which varies. The Trade Desk did not respond to specific questions about its upfront deals.\u00a0<\/p>\n

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\u201cThe Trade Desk is perceived as vulnerable at the moment,\u201d the first buyer said, adding that, given the way Amazon has touted its pricing, inventory and exclusive programming, it appears to them as if \u201cAmazon\u2019s strategic approach is to really go after The Trade Desk, and their pricing is compelling and trying to eat up market share.\u201d\u00a0<\/strong><\/p>\n

Competitive fees and pricing structure\u00a0<\/strong><\/h4>\n

Amazon is offering tech fees on programmatic guaranteed deals as low as 1% of the ad buy across all media\u2014below the 7% to 15% typically charged by other DSPs, according to two sources. Amazon has also reportedly lowered its DSP fees by up to 3 percentage points, per Digiday<\/a>.<\/p>\n

For some types of transactions, Amazon is charging tech fees under 10%, two media buyers said. Treon described those fees as \u201caggressive,\u201d making it cheaper for buyers to access third-party inventory. Last year, most DSP tech fees hovered around 10% to 12%, he added.<\/p>\n

Amazon did not respond to comment about its fee structure.<\/p>\n

Beefing up third-party supply<\/strong><\/h4>\n

Over the past nine months, Amazon has ramped up efforts to drive more third-party supply through its DSP, according to Treon, striking deals with players like Hulu on Fire TV devices and securing exclusive access to that inventory.<\/p>\n

Most recently, Amazon signed a resale deal with Samsung TV Plus to resell its inventory.\u00a0<\/p>\n

\u201cThe most unique thing about Amazon is being able to use Amazon data on third-party inventory,\u201d Treon said. \u201cWhen you\u2019re presented with a more advantageous platform fee, unique reach, and incremental data, we have to chase that in these times where we\u2019re demanding efficacy and efficiency out of media.\u201d<\/p>\n

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Advertisers are shifting millions of dollars in ad budgets, particularly in connected TV (CTV), from The Trade Desk\u2019s demand-side platform (DSP) to Amazon\u2019s. Key reasons include lower fees, improved user interface, greater measurement visibility, exclusive live sports, Prime Video\u2019s growing reach, and a more collaborative partnership model. One global auto brand moved approximately $80 million […]<\/p>\n","protected":false},"author":1,"featured_media":274896,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12023],"tags":[47993,44372,2630,1305,13352,11169,11341,970,10909,15720,9792],"dealstore":[],"offerexpiration":[],"class_list":["post-274895","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advertising","tag-amazons","tag-connected-tv-news","tag-desk","tag-exclusive","tag-marketers","tag-millions","tag-move","tag-platform","tag-platforms","tag-spend","tag-trade"],"yoast_head":"\nMarketers Move Millions in Ad Spend from The Trade Desk to Amazon\u2019s Ad Platform\u00a0 - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=274895\" \/>\n<link rel=\"next\" href=\"https:\/\/fivemor.com\/?p=274895&page=2\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Marketers Move Millions in Ad Spend from The Trade Desk to Amazon\u2019s Ad Platform\u00a0 - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Advertisers are shifting millions of dollars in ad budgets, particularly in connected TV (CTV), from The Trade Desk\u2019s demand-side platform (DSP) to Amazon\u2019s. 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