TV and Marketing Developments

Research topics at the end of the post

The Trade Desk’s Surprising Move into the TV OS World: What Media Students Need to Know

In a surprising turn of events, digital advertising giant The Trade Desk (TTD) is rumored to be entering the TV operating system (OS) ecosystem[1]. This move has significant implications for the media landscape and raises important questions for future media professionals. Here’s what media students should understand about this development:

Background

The Trade Desk, founded in 2009, is a major player in the digital advertising world. It operates an omnichannel platform that allows advertisers to buy ad placements across various digital channels, including Connected TV (CTV)[1]. In 2023, TTD reported revenue of $1.9 billion and claims to reach over 90 million households globally[1].

The Move into TV OS

According to industry newsletter Lowpass, The Trade Desk began working on its own CTV system as early as 2020. Their first partner is rumored to be audio device manufacturer Sonos, with plans to launch a TV set-top box[1].

Key Points for Discussion

1. Data Acquisition Strategy
   TTD’s primary motivation appears to be gaining access to first-party data. By creating their own TV OS, they can build direct consumer relationships and collect valuable data on viewing habits and behaviors[1]. This raises questions about data privacy and the increasing value of user information in the media industry.
2. Vertical Integration in Advertising
   This move represents a significant shift for TTD, positioning them higher in the advertising value chain. It allows them to be not just a buyer and seller of ad space, but also a content platform[1]. Students should consider the implications of such vertical integration on market competition and advertising dynamics.
3. Challenges in Scaling a New TV OS
   Entering the TV OS market is no small feat. TTD will face significant challenges in building an app ecosystem, securing content partnerships, and achieving meaningful market share[1]. Media students should analyze the strategies required to succeed in this highly competitive space.
4. Impact on “Open Internet” Positioning
   The Trade Desk has long positioned itself as a champion of the “Open Internet” in contrast to “walled gardens” like Google and Facebook[1]. How does this move into creating a proprietary TV OS align with or contradict this stance? This presents an interesting case study in corporate messaging and strategy.
5. Future of Advertising Platforms
   TTD’s entry into the TV OS world may be a defensive move against existing platforms developing their own ad-selling capabilities[1]. Students should consider how this trend might reshape the advertising technology landscape and what it means for future media professionals.

Additional Context

To fully grasp the significance of this development, media students should also familiarize themselves with:

• The current TV OS landscape, including major players like Roku, Amazon Fire TV, and Google TV.
• The growth of Connected TV advertising, which eMarketer projects will reach $26.92 billion in the US by 2025.
• The ongoing shift from traditional TV to streaming platforms and its impact on advertising strategies.
• The importance of first-party data in the era of increasing privacy regulations and the phasing out of third-party cookies.

By examining The Trade Desk’s bold move into the TV OS space, media students can gain valuable insights into the evolving relationships between technology, content, and advertising in the digital age.

Citations:
[1] https://ppl-ai-file-upload.s3.amazonaws.com/web/direct-files/1447325/10298245-3ec6-43e4-aad0-195b2b13ddb8/paste.txt

10 research ideas for media students based on The Trade Desk’s move into the TV OS world

1. The impact of vertical integration in the digital advertising ecosystem on market competition and innovation.
   • Fulgoni, G. M. (2018). How to maximize the return on investment from digital marketing. Journal of Advertising Research, 58(2), 146-148. https://doi.org/10.2501/JAR-2018-025
2. Privacy implications of first-party data collection through proprietary TV operating systems.
   • Schneider, M. J., Jagpal, S., Gupta, S., Li, S., & Yu, Y. (2017). Protecting customer privacy when marketing with second-party data. International Journal of Research in Marketing, 34(3), 593-603. https://doi.org/10.1016/j.ijresmar.2017.02.003
3. The evolution of Connected TV advertising: Challenges and opportunities for advertisers and publishers.
   • Malthouse, E. C., Maslowska, E., & Franks, J. U. (2018). Understanding programmatic TV advertising. International Journal of Advertising, 37(5), 769-784. https://doi.org/10.1080/02650487.2018.1461733
4. Strategies for new entrants to compete with established players in the TV OS market.
   • Gawer, A., & Cusumano, M. A. (2014). Industry platforms and ecosystem innovation. Journal of Product Innovation Management, 31(3), 417-433. https://doi.org/10.1111/jpim.12105
5. The role of data-driven personalization in enhancing viewer experience and ad effectiveness in streaming platforms.
   • Tran, G. A., & Strutton, D. (2020). Comparing email and SNS users: Investigating e-servicescape, customer reviews, trust, loyalty and E-WOM. Journal of Retailing and Consumer Services, 53, 101782. https://doi.org/10.1016/j.jretconser.2019.03.009
6. The potential impact of ad tech companies entering the content distribution space on traditional media companies.
   • Evens, T., & Donders, K. (2018). Platform power and policy in transforming television markets. Palgrave Macmillan. https://doi.org/10.1007/978-3-319-74246-5
7. Ethical considerations in the convergence of advertising technology and content platforms.
   • Boerman, S. C., Kruikemeier, S., & Borgesius, F. J. Z. (2017). Online behavioral advertising: A literature review and research agenda. Journal of Advertising, 46(3), 363-376. https://doi.org/10.1080/00913367.2017.1339368
8. The future of audience measurement and attribution in a fragmented TV ecosystem.
   • Napoli, P. M. (2011). Audience evolution: New technologies and the transformation of media audiences. Columbia University Press.
9. The role of artificial intelligence and machine learning in optimizing ad placement and targeting in connected TV environments.
   • Chen, Y., & Yao, S. (2017). Sequential search with refinement: Model and application with click-stream data. Management Science, 63(12), 4345-4365. https://doi.org/10.1287/mnsc.2016.2557
10. The potential impact of ad tech companies’ TV OS initiatives on net neutrality and content diversity.
    • Wu, T. (2003). Network neutrality, broadband discrimination. Journal on Telecommunications and High Technology Law, 2, 141.

These research ideas cover various aspects of The Trade Desk’s move into the TV OS world, including its implications for advertising, privacy, competition, and content distribution. The additional scientific sources provide a foundation for further exploration of these topics.