The Trade Desk (TTD) is focusing on expanding beyond connected TV (CTV) by leveraging audio as a key driver. With audio representing around 5% of its business, TTD expects both CTV and audio to increase in the business mix due to their premium nature. Consumers spending three hours daily on music and podcasts create a growing market for digital audio ads. TTD’s AI-powered platform, Kokai, has been a catalyst for performance gains in audio campaigns, delivering better cost per acquisition and click-through rates compared to competitors. TTD faces tough competition from Amazon (AMZN) and other ad-tech companies like Magnite (MGNI) in the digital ad space.

Amazon (AMZN) is rapidly gaining market share in the digital ad space with annual ad services revenues expected to reach $56.2 billion by 2024. Its DSP platform offers advertisers access to a vast audience across multiple platforms like Prime Video, Twitch, and more. Amazon is also integrating with Spotify and SiriusXM to reach over 560 million monthly digital listeners. On the other hand, Magnite (MGNI) reported strong third-quarter revenues and EBITDA growth driven by CTV partnerships and ClearLine platform adoption.

Shares of TTD have declined recently, but the stock’s forward price/earnings ratio is lower than the industry average. Despite facing competition, TTD remains a hold with potential growth opportunities in the audio advertising space.

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Read more at Nasdaq: Can Audio Advertising Become Trade Desk’s Next Big Growth Driver?