Can Retail Media be the Next Major Growth Driver for TTD After CTV?

Core Insights - The Trade Desk, Inc. (TTD) is focusing on the retail media space to enhance its performance, with Connected TV (CTV) being central to its growth strategy, where video ads account for a high-40s percentage of spending [1][9] - Retail media encompasses digital advertising space, retail data assets, and in-store opportunities provided by retailers, allowing advertisers to connect ad spend with real-world sales [2] - TTD's strategic partnerships with Walmart DSP, Roundel, and Albertsons Media Collective are expected to drive growth, with brands finding significant value in these collaborations [3][9] Retail Media Expansion - TTD's retail data marketplace provides access to purchase data, enabling advertisers to reach high-intent consumers across various platforms [2] - The Kokai platform enhances advertisers' ability to leverage third-party data, achieving 24% lower cost per conversion and 20% lower cost per acquisition, positioning retail media as a potential high-growth engine for TTD [4][9] Competitive Landscape - Criteo S.A. (CRTO) is a significant player in retail media, with a robust AI-driven Performance Media business and a full-stack Commerce Media Platform, transitioning from legacy retargeting to high-growth areas [5] - Criteo's media spend reached $4.3 billion over the last 12 months, with Retail Media revenues growing 17% year-over-year in Q1 2025, and partnerships with 70% of the top 30 U.S. retailers [6] - PubMatic (PUBM) is also expanding in retail media, with a projected CAGR of 8.4% for the global retail media platform market from 2024 to 2030, indicating strong growth potential in the sector [7] CTV Performance - TTD's CTV revenues surged over 50% year-over-year, with omni-channel video revenues growing 20%, representing 40% of total revenues [8]