The Trade Desk Shares Slip on Worries Over Amazon-Roku Advertising Alliance
June 16, 2025
Shares of The Trade Desk (NASDAQ:TTD) dropped 3% on Monday after investors weighed the implications of a new advertising collaboration between Amazon Ads (NASDAQ:AMZN) and Roku (NASDAQ:ROKU), which could intensify competition in the connected TV (CTV) ad space.
Under the new partnership, Amazon and Roku are joining forces to build what they call the largest authenticated CTV audience in the U.S., available exclusively through Amazon’s demand-side platform (DSP). The integration is expected to reach roughly 80 million American households — more than 80% of the U.S. CTV market, based on data from ComScore.
Initial pilot campaigns using this combined platform reportedly boosted advertisers’ reach by 40% without increasing budgets, while also lowering ad frequency by about 30%, suggesting a potential tripling in return on ad spend.
Commenting on the development, Bloomberg Intelligence analyst Geetha Ranganathan said, “Fears about competitive threats to Trade Desk’s ad budgets in 2H, especially from Amazon’s DSP, are only about to get stronger with a new pact between Amazon and Roku, which makes Roku’s inventory available on Amazon DSP from 4Q. Though TTD remains the only scaled-up independent DSP, recent reports about marketers moving budgets to Amazon are clouding TTD’s growth narrative, given the former’s heft and full-funnel capabilities.”
The Amazon-Roku agreement also enhances ad targeting across a variety of top-tier streaming apps, including The Roku Channel, Prime Video, and a wide range of other services operating on Roku and Fire TV platforms. These include content from Disney (NYSE:DIS), FOX, Paramount, Tubi, and Warner Bros Discovery (NASDAQ:WBD).
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