We haven’t seen any of that. And the reason why I don’t think it slows it down is because the world knows they’re serious. The world knows that it’s not going to last forever. They are looking for a way to get out of this. And so, I think the average publisher is saying exactly what we were saying four or five years ago that while we think it’s a strategic mistake for Google to get rid of cookies, we also think it’s a strategic mistake for all the rest of us to do nothing. And so, everyone else I think has bought into that strategic fact that everyone has to be moving and operating and adjusting. So, I do think this prevents any sort of dips or drop-offs where some 20% of slow adopters get meaningfully hurt. I think it helps give them a bit more runway.
But I don’t think it decelerates the adoption of UID2 in any way. In part because UID2 adoption has been led by CTV and CTV providers are competing with each other, and that is a way that they differentiate from one another is, do I make it easy for the biggest brands in the world to put their own data to work as they buy my media. And if I do that, I will get higher CPMs. All of them need that at Streamer X, Y, and Z, irrespective of what happens at the New York Times or the L.A. Times or anywhere else like that. So, hopefully, that answers the question on cookie deprecation. I’m excited to be moving on from this. Thank you.
Brian Fitzgerald: Yeah, thanks.
Chris Toth: Thanks, Brian. Next question, John?
Operator: Absolutely. The next question comes from Vasily Karasyov with Cannonball Research. Please proceed.
Vasily Karasyov: Thank you. Jeff, I would like to ask you to talk about the — your deeper partnership with Roku that was announced last week. We heard some commentary from Roku. And from your perspective, what would you highlight for us that is significant for the Street to know. And in addition, as this progresses, I think the timeline is a couple of quarters out. Can this lead to increased volume of CTV advertising for the Trade Desk? And if so, how would that mechanics work? Thank you.
Jeff Green: Thanks. So, it’s early days in the specifics of our partnership, but we’re very excited about the long-standing relationship that we’ve had with Roku and seeing it finally materialize into something meaningful. And I do believe this is something meaningful. The Roku channel has grown tremendously over the last couple of years. So, as they become more and more into content, and that includes having more ads, we’re excited to have access to those in large part because we view Roku as a key premium publisher in the connected television space. A couple of things that I think are incremental about the partnership. We anticipate their adoption of UID2. So, we think that will be important. Our relationship has strengthened during the most recent discussions, and we believe that we will play the role as their most strategic demand partner.
I think for the first time ever, advertisers can get access to Roku’s ACR data directly in The Trade Desk platform. And perhaps as significantly as any of those things, I think us getting access to biddable inventory is a very big deal. Too much of CTV is still sold on a programmatic guaranteed basis, or a fixed-rate basis, and that is becoming increasingly undesirable as more inventory comes online, buyers want the option to pick and choose. That is why they will pay a premium. That is the way to get a premium. And that requires a strong persistent sense of identity or identity currency. And that also means making the inventory biddable. So, the strength of the partnership and the relationship is the best that it’s ever been with Roku. I’m really excited about the change that this represents for them, and we’re excited at the partnership, and excited for what it means for the future.
Thank you.
Chris Toth: Thanks, Vasily. Next question, John?
Operator: The next question comes from James Heaney with Jefferies. Please proceed.
James Heaney: Great. Thank you for taking the question. Can you just talk more about the expanded OpenPath partnership with Disney’s streaming properties? Curious how this impacts just the amount of CTV inventory that you’re now able to access compared to what you had before? Thank you.
Jeff Green: You bet. So, let me just take a step back to explain what OpenPath is. Over the years, the supply path in digital advertising has gotten more and more convoluted. And sometimes it’s because of the tactics used in companies like Google where the double-click ad exchange was once a pure thing, and then they introduced things like open biddings and open bidding is really the backdrop whereby they created a lot of funky auctions that are described in the Texas Attorney General’s complaint. So, I think there’s been a whole bunch of things that have made the supply chain complicated, not least of which is Google, but also the incentives that that has created for SSPs, and the way that they process auctions. In an effort to make the supply chain more efficient, we created an offering called OpenPath, which is essentially going to the largest publishers in the world, often in connected television, but in any channel, where they want to plug in directly with us.
So, I want to be super clear, we are not in the yield management business. That is a function for publishers and their technological representatives. We are representing the buyers, but we’re willing to give them visibility into our demand directly, so that an intermediary can’t make it more convoluted, more opaque, and in some cases, charge more than they’re adding in value. So we’ve connected OpenPath, this pure pipe of visibility into our demand directly into — to Disney’s DRAX, so that they have UID piped directly to them and we have better visibility into the way that the auction works. We expect a 100% visibility eventually at Disney. We’re moving in that direction. We — they said on stage at Forward ’24 by the way that 50% of the business is automated and addressable.
And by 2027, they expect that to be 75%. So, we’re on the path towards 100%, but that is all made possible by us plugging in directly, and having a clear sense of where UID present, where is it not? How can we think — make things more addressable and how do we make the connection between us, or said another way, how do we make the supply path as clean, clear, transparent and efficient as possible, and by us plugging in directly with Disney, I think we’re setting yet another model for the way that the most optimal integrations can be done in connected television. So, very excited to be doing that with one of the biggest in the space. So, thanks for the question.
Chris Toth: Thanks, James. Next question, John? Next question, John?
Operator: Sorry about that. Technical difficulties. The next question comes from Jason Helfstein with Oppenheimer. Your line is live.
Jason Helfstein: Thanks. I want to ask a question about social video. It seems that it’s been gaining share, and as linear dollars are just kind of leaving linear, like, it’s definitely competing with CTV for a share of those dollars. Just any thoughts about how you think about that, and how you can kind of, utilize that channel for your customers? And then, it also seems to be perhaps pushing CTV to embrace more data to try to be competitive with that. And so, maybe comment on that, agree, disagree, et cetera. Thank you.
Jeff Green: You bet. So, in the move from offline advertising, which, of course, pre-Internet was everything, and in the world of digital, everything has been shifting towards digitalization and eventually, we think all advertising will be transacted digitally even for the small minority of that that is not actually executed digitally. So, we’ll use digital pipes even if we’re going to run an ad in print, for instance. So, everything is moving to digital. As it’s been moving to digital, it’s gone and there have been sort of two poles or two centers of gravity. One is around user-generated content that has exponentially more supply than demand — orders of magnitude more supply than demand because they’re uploading thousands of hours every second or whatever, whether it’s on TikTok or YouTube, the amount of content is off the charts.
And what those platforms have often done really well is made it really easy for you to spend money, and then they often report the results on their own, in other words, grading their own homework to tell you how they did. When you use those metrics and partly because of the supply demand, the reach is really cheap. And when you contrast that to premium content, it can seem very cheap, especially when you’re relying on the metrics that are provided by the companies that are selling you the inventory. We have focused all of our efforts on the premium side of the Internet, and more and more you will hear us talk about our goal is to monetize the premium side of the Internet, in large part because that’s where people spend all their time. We mentioned in the prepared remarks that the ad-to-content ratio in user-generated content is worse than it’s ever been.
