Investing.com — The Trade Desk Inc. (NASDAQ: TTD) stock fell 3% Friday afternoon following an Adweek report that Amazon is offering agencies free head-to-head testing of its demand-side platform (DSP) against competitors.
According to the report, which cited a pitch deck and sources familiar with the matter, Amazon is approaching agencies with an offer to fund comparative tests between its DSP and rival platforms, including covering costs for competitors’ ad inventory, technology, and media measurement tools. The proposed tests would run dual campaigns for 4-6 weeks with equal budgets allocated to both Amazon’s DSP and the competing platform.
In the leaked presentation slides, Amazon described the testing program as “designed to empirically demonstrate the performance of Amazon DSP versus other DSPs” and an “opportunity to evaluate and optimize your programmatic advertising strategy through a controlled test with comprehensive analysis.”
The Trade Desk, which operates one of the leading independent demand-side platforms in the digital advertising ecosystem, appears to be facing increased competitive pressure from Amazon’s aggressive expansion in the advertising technology space.
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