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TTD Banks on Kokai's Widespread Adoption: Path to Greater Monetization?
ZACKS· 2025-08-22 14:15
Core Insights - The Trade Desk launched Kokai in 2023, a next-generation platform that integrates advanced AI, measurement, partner integrations, and user experience for programmatic advertising [1] - Kokai has shown significant performance improvements, with clients like Samsung and Cash Rewards reporting increases in campaign effectiveness [2][11] - The adoption of Kokai is accelerating, with three-quarters of clients using it and full adoption expected by the end of 2025 [3][11] Performance Metrics - Samsung achieved a 43% increase in reaching its target audience for an omnichannel campaign in Europe, while Cash Rewards saw a 73% improvement in cost-per-acquisition for campaigns in Asia [2] - Campaigns on Kokai are showing over a 20-point increase across key performance indicators [2][11] - Clients shifting their spend to Kokai are increasing overall investment in The Trade Desk by more than 20% faster than others [3] Revenue and Growth Projections - The Trade Desk reported a 19% year-over-year revenue growth, driven by Kokai and strength in connected TV [5] - The company forecasts a 14% revenue increase for the third quarter, projecting at least $717 million in revenue [5] Competitive Landscape - Taboola.com Inc. is expanding its performance advertising platform, targeting a $55 billion market with its new offering, Realize [6][7] - Magnite operates as a leading supply-side platform, with significant growth driven by its partnerships and ad server technology [8][9] Valuation and Market Performance - The Trade Desk's shares have declined 49.3% over the past year, contrasting with the S&P 500's rise of 15.2% [12] - The company trades at a forward price-to-sales ratio of 8.02X, higher than the industry average of 5.38X [13]
ITN and Magnite Launch First Programmatic Solution for Local Linear TV in the US Market
Prnewswire· 2025-05-08 12:17
Group 1 - ITN and Magnite have announced a collaboration to modernize local TV advertising, enabling programmatic transactions for live linear ads from local TV stations [1][2] - The local TV advertising market in the US is projected to reach $21 billion in 2025, with increasing advertiser demand for live local inventory [2] - ITN's technology converts local linear ad supply into biddable impressions, integrating with Magnite's SpringServe ad server to enhance the buying experience [3][7] Group 2 - The collaboration aims to provide digital-like buying experiences for advertisers, making local TV inventory more accessible and competitive [4] - ITN's platform includes a network of 75 broadcast ownership groups and over 1,100 stations, enhancing the scale of local linear advertising [2][5] - Magnite's SpringServe platform supports both linear TV and digital video buys, allowing advertisers to incorporate local linear into their media plans seamlessly [7][8]
The Trade Desk vs. Magnite: Which Ad Tech Stock is the Smarter Buy?
ZACKS· 2025-04-30 16:10
Core Insights - The digital advertising market is projected to grow at a CAGR of 15.4% from 2025 to 2030, driven by mobile penetration, social media, and programmatic advertising [2] - The Trade Desk (TTD) and Magnite (MGNI) are key players in this space, with TTD focusing on demand-side solutions and MGNI on supply-side solutions [1][3] Company Analysis: The Trade Desk (TTD) - TTD reported a record-breaking spend of over $12 billion on its platform in Q4 2024, indicating strong advertiser demand [4] - The introduction of the Ventura Operating System for Connected TV (CTV) aims to enhance efficiency and targeting capabilities [4][5] - TTD's acquisition of Sincera is expected to improve its programmatic advertising platform by integrating data quality insights [5] - The company faces operational challenges due to maintaining two platforms, which could impact performance if delays occur in adopting the new Kokai platform [6] - TTD is under pressure from macroeconomic uncertainties and competition from major players like Google and Amazon [7] Company Analysis: Magnite (MGNI) - MGNI's contribution from CTV increased by 19% year-over-year for 2024, generating $607 million in contribution ex-TAC and processing over $6 billion in ad spend [8] - The company sees Netflix as a significant opportunity for growth as it expands its ad tier, expecting contribution ex-TAC growth of over 10% in 2025 [9] - MGNI's partnerships with major companies like Disney and its expansion into live sports are expected to drive further growth [10] - The SpringServe ad server and streaming SSP platform are key catalysts for MGNI, enabling direct relationships with major streaming platforms [12] - MGNI's costs per ad request have decreased significantly, with a 26% reduction for DV+ and a 45% reduction for CTV in 2024 [12] Market Performance - Both TTD and MGNI shares have declined due to a tech sell-off, with MGNI down 28.5% and TTD down 54% over the past three months [14] - TTD is considered overvalued with a Value Score of F, while MGNI has a Value Score of B [15] Valuation and Earnings Estimates - TTD's forward 12-month price/earnings ratio is 28.37X, compared to MGNI's 12.83X [17] - Analysts have revised TTD's earnings estimates downward, while MGNI's estimates remain unchanged [18][20] Investment Recommendation - MGNI is viewed as the smarter pick due to its stronger valuation, diversified partnerships, and expanding CTV footprint [21]