The Trade Desk(US:TTD) Jing Ji Guan Cha Bao·2025-08-15 08:33Core Viewpoint - The Trade Desk's AI-driven programmatic buying platform, Kokai, has faced significant criticism and concerns regarding its impact on the advertising ecosystem, particularly around issues of efficiency, transparency, and market dynamics [2][3][4]. Group 1: Kokai's Introduction and Initial Expectations - Kokai was launched as a next-generation programmatic buying interface, designed to analyze millions of ad opportunities per second and optimize bidding through AI capabilities [2]. - The platform aims to integrate more data into decision-making processes, enhancing advertising effectiveness and accelerating campaign launches [2]. - Despite a 19% revenue growth reported in Q2 2025, investor sentiment remains cautious due to competitive pressures and structural changes in the advertising ecosystem [3]. Group 2: Emerging Concerns and Feedback - Initial feedback from media buyers indicates frustrations with Kokai, citing issues such as slower-than-expected rollout and mixed experiences with the platform [3][4]. - Concerns have been raised about the potential downgrading of existing supply chain relationships, as the algorithm appears to prioritize direct connections over traditional inventory channels [4][6]. Group 3: Conflicts Within the Ecosystem - The controversy surrounding Kokai highlights three key tensions: 1. The conflict between efficiency and neutrality, where prioritizing direct channels may redistribute traffic and revenue away from established publishers [6]. 2. The tension between opacity and the need for explanation, as stakeholders seek clarity on algorithmic decisions affecting budget allocations [7]. 3. The conflict between short-term performance and long-term ecosystem health, where immediate gains may undermine the diversity and resilience of the advertising landscape [8]. Group 4: Perspectives of Different Stakeholders - Buyers appreciate the convenience Kokai offers, such as automated budget allocation and cross-channel predictions, but face challenges when default optimization strategies conflict with existing purchasing habits [9]. - Sellers are drawn to the promise of transparency and precision but may experience negative impacts if their inventory is marked as suboptimal by the algorithm [9]. - For The Trade Desk, Kokai represents a critical component of its growth strategy, yet concerns about platform neutrality complicate its path forward [9]. Group 5: Future Implications and Industry Reflection - The rapid emergence of these concerns reflects the shift from AI as an auxiliary decision-making tool to an automated decision-making system, amplifying the impact of default settings on profit distribution [10]. - The rise of connected TV (CTV) and retail media has further fragmented the advertising inventory landscape, making any optimization logic potentially transformative for market dynamics [10]. - The industry is now focused on The Trade Desk's next steps regarding Kokai, particularly in terms of enhancing path diversity and providing clearer causal analysis in reporting [11][12].