Amazon, Google challenge The Trade Desk as ad tech rivals pivot

The Trade Desk faces a dual threat from two of the internet's largest advertising and cloud players, each pursuing a different but complementary strategy. Amazon's approach centers on bundling its lower-margin ad-tech offerings—traditionally DSP services—with higher-margin cloud infrastructure through AWS. This bundling strategy addresses a key barrier that has prevented Amazon from directly competing in The Trade Desk's open exchange marketplace: the open exchange business typically operates on thin gross margins. By packaging ad-tech services with broader AWS offerings, Amazon can improve operating margins and create a more compelling value proposition for advertisers seeking integrated solutions. This is particularly significant in connected TV, where The Trade Desk has achieved notable growth recently. Google's parallel push with 'Buyer Direct' attacks the problem from the supply side, allowing advertisers to purchase directly from publishers without relying on independent demand-side platforms—effectively bypassing The Trade Desk's traditional role as intermediary.