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Product Management Trade-off Question: The Trade Desk platform expansion versus targeting capabilities improvement

Should The Trade Desk prioritize expanding our inventory or improving existing targeting capabilities?

Product Trade-Off Hard Member-only
Strategic Decision-Making Data Analysis Product Prioritization Advertising Technology Digital Marketing Programmatic Advertising
Product Strategy Growth Ad Tech Inventory Management Targeting Optimization

Introduction

The Trade Desk faces a critical decision: expand our inventory or improve existing targeting capabilities. This trade-off impacts our core value proposition, user experience, and competitive positioning. I'll analyze this through the lens of business impact, user needs, and technical feasibility to provide a strategic recommendation.

Analysis Approach

I'd like to outline my approach to ensure we're aligned on the key areas I'll cover in my analysis.

Step 1

Clarifying Questions (3 minutes)

  • Based on recent market trends, I'm thinking inventory expansion might be driven by emerging ad formats. Could you share which new inventory types we're considering?

Why it matters: Helps assess potential reach and revenue impact Expected answer: Connected TV, audio, or digital out-of-home Impact on approach: Would influence technical requirements and targeting capabilities needed

  • Considering our current market position, I assume improving targeting is about enhancing precision. Can you confirm if we're focusing on demographic, behavioral, or contextual targeting improvements?

Why it matters: Determines the data and algorithms required Expected answer: Emphasis on behavioral targeting Impact on approach: Would prioritize machine learning investments and data partnerships

  • Looking at our Q2 earnings, I noticed a slight dip in client retention. Is this trade-off decision partly driven by addressing churn?

Why it matters: Aligns solution with immediate business needs Expected answer: Yes, some larger clients are requesting better performance Impact on approach: Would emphasize quick wins in targeting improvements

  • Given the rapid changes in privacy regulations, I'm curious about our data strategy. How might upcoming privacy changes impact our ability to expand or improve targeting?

Why it matters: Ensures compliance and future-proofs the solution Expected answer: Significant impact expected, especially in certain geos Impact on approach: Would prioritize first-party data solutions and privacy-safe targeting methods

  • Considering our engineering roadmap, are there any major platform upgrades planned that could affect this decision?

Why it matters: Identifies potential technical synergies or conflicts Expected answer: AI/ML infrastructure upgrade in Q4 Impact on approach: Could accelerate targeting improvements if timed correctly

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