The news: The Trade Desk (TTD) is heading into Q4 under rare, dual-sided pressure of intensifying competition from Amazon’s fast-growing DSP and escalating frustration from agencies forced onto its new Kokai interface.
According to AdExchanger, multiple ad tech sources say Omnicom agencies appeared to shift a meaningful portion of their Q3 programmatic budgets from TTD to Amazon DSP—potentially a double-digit percentage swing. While TTD denies losing Omnicom spend and the holding company insists it works with “a broad spectrum” of DSPs, agency insiders say chatter about reallocations toward Amazon is spreading.
The conflict adds color to statements from TTD executives earlier this year claiming Amazon has an unfair hold on the digital advertising market.
Pricing power play: A key factor is the fee gap.
- Amazon charges 0% for programmatic guaranteed deals on its owned media and 1% on open-web buys, far below TTD’s estimated 20% take rate. TTD says its fees supports its operating costs and allows it to maintain objectivity for its clients.
- That pricing, combined with Amazon’s deepening partnership with Omnicom following its US media account win, positions Amazon as the most credible challenger TTD has faced in years.
- Amazon DSP has expanded to offsite inventory, including from Netflix, Spotify, and SiriusXM.
Solimar shutdown shock: At the same time, Adweek reports that agencies are increasingly strained by TTD’s forced migration from Solimar, its old programmatic advertising system, to its AI-driven successor, Kokai.
Buyers—including one spending tens of millions annually—say they can no longer create new campaigns in Solimar despite prior assurances. They also cite bugs ranging from failed launches and missing audiences to broken integrations that caused some teams to miss holiday windows. TTD acknowledges some system issues but says Kokai adoption has reached 85% and retiring Solimar is necessary.
Why it matters: Two pressure points are converging at the most consequential moment of the year.
- Amazon’s price advantage is reshaping the economics of DSP selection. Agencies describe the current moment as an “inflection point,” signaling that TTD’s premium pricing may be facing significant pushback.
- Workflow friction during peak season heightens switching risk. Agencies say Kokai is less stable and more complex than Solimar—problems magnified during a quarter where execution errors carry outsized cost.
These developments come as Q4 spend will reveal whether perceived budget shifts toward Amazon were isolated or directional; we’re betting on the latter. For a DSP built on long-standing agency trust, operational instability and rising competition arriving simultaneously is notable.
Key takeaway for marketers: This Q4 will clarify whether TTD’s position in the open web remains resilient—or whether budget pressure and platform friction are beginning to loosen its grip.
- Marketers should expect more price-based DSP comparisons, especially as Amazon pushes its 0 to 1% fee narrative into more RFPs.
- Pressure-tested workflows matter: For brands reliant on heavy holiday execution, verifying Kokai readiness and QA processes is essential.
- DSP diversification may accelerate: If Amazon’s economics become more attractive and Kokai grows more disruptive, agencies may spread budgets across multiple buying platforms rather than centralize on a single DSP.