The Trade Desk tests automated buying modes as AI reshapes programmatic advertising

The Trade Desk is introducing new automated campaign buying options as it responds to growing competitive pressure from large-scale advertising ecosystems and shifting advertiser expectations, according to Digiday.

The company is currently testing a feature set known as “Trading Modes,” designed to simplify campaign execution by integrating media, data, and technology costs into a single pricing model. The update introduces two distinct approaches to campaign management, both operating within the company’s AI-driven platform, Kokai.

The first option, Performance Mode, relies on The Trade Desk’s Koa optimization engine to automate key campaign decisions. This includes selecting ad inventory, adjusting bids, and managing pacing in real time. The model consolidates associated costs into a single CPM, reducing the need for manual configuration while emphasizing outcome-based performance.

Control Mode, which remains the default setting, allows advertisers to retain full oversight of campaign structure and execution. Users opting for this approach can manually adjust parameters and maintain visibility into individual cost components. As part of the rollout, advertisers using Control Mode are being offered temporary access to Audience Unlimited, the platform’s AI-powered data marketplace.

The rollout comes at a critical moment for The Trade Desk. The company has faced increased scrutiny from major agency groups and is navigating broader industry shifts toward integrated advertising ecosystems. Competitors such as Google and Meta have gained traction with automated solutions that prioritize simplicity and performance over granular transparency, through products like Performance Max and Advantage+.

The introduction of Trading Modes reflects a strategic adjustment aimed at balancing these competing demands. By offering both automation and manual control, The Trade Desk is attempting to accommodate advertisers seeking efficiency alongside those prioritizing transparency and cost visibility.

However, the move has also raised concerns among some industry participants. The bundling of fees within a single CPM in Performance Mode reduces visibility into how budgets are allocated across media, data, and platform costs. This shift could limit advertisers’ ability to evaluate pricing structures, benchmark performance, or assess the platform’s margin.

At the same time, the company is accelerating efforts to expand adoption of the new system. Industry sources indicate that advertisers participating in the beta are being encouraged to increase spend to generate sufficient data for machine learning optimization.