On Friday, Adweek reported that Amazon DSP “is approaching some agencies and offering free head-to-head testing of its platform… against rivals.” The story, based on a pitch deck Adweek reviewed (and included screenshots of), said Amazon is running “dual campaigns in its DSP and an agency’s chosen rival DSP for a minimum of four to six weeks.”
After publication, The Trade Desk responded to the report, sharing the following statement with Adweek:
“We would welcome fair performance comparisons with Amazon. What is clear is that Amazon syphons [sic] almost all of its demand to its owned and operated inventory, and a fair comparison would highlight that.”
Shots fired!
Why This Matters:
Amazon DSP has been on a tear this year, rolling out a steady stream of announcements and gaining significant momentum. As a result, a clear Amazon DSP vs. The Trade Desk narrative has emerged. Or at least that’s how some people view it.
Earlier this year, The Trade Desk’s CEO Jeff Green famously and publicly downplayed Amazon as a competitor. However, obviously, the company’s decision to respond to the Adweek report suggests otherwise. Wall Street, too, hasn’t seemed to buy that line of thinking.
Experts React:
Here are some of the more interesting posts about the Adweek report from X:
Our Take:
The Trade Desk’s stock has rebounded slightly this month after dropping nearly 54% since January. Shares are up about 8% in October as the company doubles down on its “supply chain” narrative to win over advertisers and reassure investors.
This feels like part of the broader battle occurring, by the way, on DSP fees and cost. Clearly, Amazon can afford to apply pressure to the rest of the market given their size and scale beyond advertising/adtech. Whether or not that’s fair is certainly up for debate.
