Streaming's Massive Monetization Gap $TTD

Television advertising stands at a pivotal transition.

Connected TV viewers overtook traditional linear TV viewers (cable) in 2024 -- and we expect this trend to continue.

While viewers rapidly migrate to streaming platforms, advertising dollars remain anchored in traditional linear TV due to decades of established infrastructure, measurement standards, and buying practices.

The Trade Desk (TTD) has built technology to unlock this trapped value, positioning itself at the center of television's advertising migration.

An analysis of connected TV platforms highlights this opportunity.

This chart below shows the relationship between time spent on Connected TV (CTV) platforms and their share of ad revenues in 2024 -- and a significant opportunity for TTD.

Consider: Netflix (a streaming partner of TTD) captures 20% of streaming viewing time but only a fraction of connected TV advertising revenue. Disney+ and other premium streaming platforms cluster similarly, indicating significant under-monetization relative to their audience share. Only YouTube approaches equilibrium between its viewer time and advertising revenue at significant scale.

While ad spend on Connected TV is rising, it still hasn't caught up with shifting consumer behavior.

CTV ad spending increased by nearly 20% in 2024 and made up for ~18% of total time spent with media, but comprised only 7% of total ad spending.

Members Only Beyond This Point