The Trade Desk carved out a niche as a fast-growing underdog that could take on Google in digital advertising, but now the challenger faces challenges of its own, Patience Haggin writes for The Wall Street Journal.

The ad-tech company is contending with a fierce new rival in Amazon, continued competitive pressure from Google, an exodus of top executives and frustrated agency partners. Four of the five largest ad-agency holding companies in recent months have expressed concerns about Trade Desk’s “take rate,” the percentage of ad spending it keeps as transaction fees.

Then in March, Publicis Groupe told clients it would no longer recommend they work with Trade Desk, citing an audit for which the company declined to provide certain documents, according to people familiar with the matter.

Some analysts eye the fuss over fees with skepticism. “Agencies are just looking to squeeze down that fee, and they’re playing hardball to try and cut the rate that Trade Desk is charging them,” said Luke Stillman, managing director of Madison and Wall.

But the company’s market capitalization has declined from a peak of nearly $69 billion in December 2024—more than the four largest agency holding companies combined at the time—to around $10 billion.

I asked Patience for more on her deep dive.

Why did you decide to take a close look at the Trade Desk now?

Patience: I’ve been interested in their story for years. Many startups have tried to challenge Google in the market for demand-side ad platforms, and Trade Desk was the first one that managed to take meaningful share. I noticed they had been through quite a reversal of fortunes since I last wrote about them in 2021. I wanted to delve into their bumpy ride.

What does this all mean for online advertisers?

Patience: The fee scrutiny on Trade Desk signals a new era when advertisers face additional financial pressures and scrutinize fees more heavily. And Amazon has developed into a fierce competitor. That’s good news for marketers, since they have another company fighting for their business.

More: Walmart on Thursday said it had added Yahoo and Magnite to its ad-tech ecosystem, expanding beyond its deal with Trade Desk after exclusivity expired. [Ad Age]

Meta Platforms has started the rollout of subscription plans for Facebook, Instagram and WhatsApp, and is testing new subscriptions for users of its AI chatbot as the company seeks to recoup some of the costs from its expensive AI buildout, Dean Seal and Meghan Bobrowsky report for the Journal.

WhatsApp Plus will cost $2.99 a month, Facebook Plus and Instagram Plus will be priced at $3.99 per month, and subscriptions to the Meta AI chatbot will cost $7.99 a month or $19.99 a month depending on the tier.

The offerings will include enhanced features for users and premium tools for businesses and creators, said Naomi Gleit, Meta’s head of product.

“These subscription plans offer richer ways to express and connect across our apps with more fun features to be added,” Gleit said in a video on Instagram.

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