Piper Sandler, a financial services firm, provided insights into the digital advertising market, noting a general uptick in market spend growth.
The firm observed that market spend growth for August was 50 basis points higher than anticipated, resulting in a third-quarter spend growth increase of 40 basis points to 8.9% year-over-year (Y/Y). Furthermore, the full-year growth rate for the digital ad market was revised upward by 20 basis points to 9.1%.
Specifically, Roku Inc. (NASDAQ: NASDAQ:ROKU) received a positive revision, indicating favorable trends in its performance. In contrast, The Trade Desk Inc . (NASDAQ:TTD) experienced a growth below expectations for the first time in several months. Additionally, Netflix (NASDAQ:NFLX)'s performance was softer than expected.
The report also highlighted the ongoing shift in TV viewership patterns, with streaming now accounting for 41.4% of total TV viewership in the United States, up by 270 basis points Y/Y. This shift continues to reflect the increasing preference for streaming over traditional television.
Piper's analysis of credit and debit card data for Netflix suggests that U.S. sales growth for the streaming giant may be reaching a plateau. Meanwhile, Roku's subscription and services segment is showing signs of acceleration, which could indicate a strengthening position within the streaming market.
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