The Trade Desk launched its Kokai platform over two years ago, aiming to simplify web ad inventory investment and draw spending away from tech giants’ walled gardens. However, a slower rollout and cautious reception from buyers have hindered its progress, contributing to the company’s first-quarter earnings miss in 2024.
The platform is now nearly complete, with The Trade Desk’s leadership expecting full adoption among customers by year-end. Yet, widespread acceptance depends on resolving user concerns, particularly about Kokai’s unconventional periodic table-inspired interface and demonstrating clear advantages over the existing Solimar tool, still favored by many practitioners.
Functionality and Features
Kokai integrates AI tools like Koa and partnerships with retail media networks such as Albertsons and Walmart. It offers metrics on retail and TV media spending, targeting growing programmatic channels like connected TV (CTV) and audio.
Users acknowledge Kokai’s underlying technology delivers benefits. Coleman Winner, a strategist at Tinuiti, uses Kokai daily and affirms its value. The AI capabilities and streamlined measurement reporting have earned praise from programmatic leaders, including Jack Politis of Assembly.
The Trade Desk reports that Kokai reduces cost per conversion by 24% and cost per acquisition by 20% for clients.
User Interface Challenges
A key difference from other DSPs is Kokai’s “Programmatic Table” user interface, designed to provide a comprehensive view of ad trading activity. The Trade Desk’s CMO, Ian Colley, describes this as empowering marketers to fully control their advertising.
However, many buyers find the UI unintuitive and time-consuming compared to Solimar. Kendra Tang from Rain the Growth notes increased clicks and workflow delays. Assembly staff continue to rely on Solimar about 60% of the time due to familiarity.
Feedback at a recent industry town hall was critical, with users likening the interface to recalling high school chemistry. Other issues raised included pricing, early platform stability, and API documentation. Sara Lemmerman of KSM called out Kokai’s steep learning curve but acknowledged improved performance after migrating clients.
Progress and Outlook
The Trade Desk has been responsive to user feedback, making improvements such as enhanced supply-path optimization management. Some critics, like ad tech consultant Karsten Weide, were initially skeptical but recognize progress through updates including OpenSincera in May and the Deal Desk tool for publisher relationship management.
Despite reaching about two-thirds customer adoption in two years, converting the remaining users by the end of 2024 remains challenging. Colley says “laggards” exist alongside early adopters and expects Deal Desk’s full release to accelerate adoption.
The Trade Desk has not disclosed a timeline for phasing out Solimar. Even with Kokai’s full rollout, the company faces competition from Amazon in the DSP market and Mediaocean in agency workflow software.
Additional Industry Notes
A survey by PR firm Walker Sands reveals growing B2B marketer interest in creator marketing and non-traditional channels:
- 76% invest in YouTube partnerships
- 65% allocate spending to LinkedIn thought leadership
- 48% fund newsletters
- 49% support influencer marketing
- 44% invest in podcasts
Meanwhile, WPP’s CMI hired Andy Shaughnessy as SVP of data analytics, and Digitas Health appointed Craig Romanok as chief commercial officer. The European agency SAMY Alliance rebranded as SAMY. In Japan, Dentsu and others face a $33 million fine related to the Tokyo Olympics bid scandal, with Dentsu appealing.