Media buyers shift spend from The Trade Desk's OpenPath over transparency concerns

"The Trade Desk's commercial results have stabilized following its earnings miss in February. But transparency concerns among media buyers over its programmatic supply chain products are proving persistent. In recent months the company's OpenPath product has become a focal point for media agency skeptics, Digiday has learned. Several U.S. media buyers explained that, following investigations into the overall cost of the product to their clients, they had pulled or paused investment from OpenPath."

"Launched in 2022, The Trade Desk pitched OpenPath as a cleaner, more direct programmatic pipeline for publishers and advertisers. It's used to directly connect advertisers with thousands of publishers from A+E Networks to Encyclopedia Britannica, including those offering in-demand CTV inventory. At the time, some saw it as just another way for the company to control the flow of ad dollars."

""both a canary in the coalmine and a stalking horse. As a canary in the coalmine, OpenPath provides advertisers with essential signals on supply chain dynamics that they can apply across everything they do. As a stalking horse, it pushes all of us to implement ways we can improve those supply chain dynamics, so advertisers and publishers can make the most of every advertising dollar.""

The Trade Desk's commercial performance stabilized after an earnings miss in February, yet transparency concerns persist around its programmatic supply-chain offerings. OpenPath, launched in 2022, is positioned as a cleaner direct pipeline connecting advertisers with thousands of publishers and CTV inventory. Several U.S. media buyers investigated OpenPath's overall cost and subsequently pulled or paused investment. The Trade Desk frames OpenPath as both a signal and a catalyst for supply-chain improvements. Advertisers and agencies do not pay a direct OpenPath charge but still incur platform and "tech" fees, while publishers pay roughly a 5% fee, complicating price visibility for agencies.

Read at Digiday