The Trade Desk's 'premium internet' concept refers to the company's shift in focus from the broader open internet to what CEO Jeff Green describes as 'the best of the open internet.' This concept distinguishes high-quality content from spammy, low-grade content prevalent on the open web, which often gets distributed through walled gardens. The premium internet emphasizes the value of brand-safe, high-quality environments for advertising, as opposed to the cluttered and user-unfriendly spaces that are sometimes associated with programmatic advertising on the open internet.

To differentiate between the open internet and premium internet, The Trade Desk highlights the quality of content and the environment in which ads are placed. The open internet includes all types of content, including spammy or low-grade sites that are made for arbitrage and can be associated with walled gardens. In contrast, the premium internet refers to high-quality, brand-safe content that is considered 'the best of the open internet,' where third-party programmatic tech like The Trade Desk typically operates, offering a more valuable space for advertisers.

The Trade Desk criticizes walled gardens in advertising for several reasons:

• Attribution: Walled gardens make ad attribution appear straightforward, but they often do not provide advertisers with a clear understanding of where their ads were served or the actual results of their campaigns.

• Ad-to-content ratio: The ad-to-content ratio in walled gardens is very high, suggesting an environment where ads are densely packed, potentially leading to a poor user experience.

• Quality of inventory: Walled gardens are known for a vast supply of user-generated content, which can result in cheaper reach but may not match the quality of premium content.

• Transparency: Walled gardens have been criticized for a lack of transparency, making it difficult for advertisers to assess the true performance and placement of their ads.

The Trade Desk advocates for the premium internet, where advertising is placed alongside high-quality content, offering better brand suitability and a more transparent environment for advertisers.

The Trade Desk's Q1 2024 earnings report had a significant impact as it showcased the company's financial growth and strategic shift in focus. The report highlighted:

• Revenue Growth: The company's total revenue was $491 million, marking a 28% increase from the previous year.

• Profit Increase: Net income rose from $9 million in Q1 2023 to $32 million in Q1 2024.

• Strategic Focus: The earnings report was notable for The Trade Desk's new emphasis on the 'premium internet,' a move away from the broader open internet to high-quality, brand-safe content.

This financial success and strategic repositioning suggest that The Trade Desk is not only growing but also evolving its approach to online advertising to better serve advertisers and address industry challenges.