Week in Review: CTV and AI Dominate Ad Tech Earnings, Major Distributors Back Microdramas, and Kraft Heinz Ramps Up Ad Spend

Why It Matters

The shift toward CTV and AI reshapes where advertisers allocate budgets, while vertical video and higher brand spend signal new growth avenues in a fragmented media landscape.

Key Takeaways

• The Trade Desk shares fell 15% despite 12% YoY revenue growth
• PubMatic expects double‑digit revenue growth H2, CTV up 18% YoY
• Magnite reported 6% revenue growth, driven by 30% CTV expansion
• RoseBerry Media launches vertical‑TV studio with All3Media, Banijay, Fremantle deals
• Kraft Heinz targets 5.5% of sales for ad spend, up 37% YoY

Pulse Analysis

The first‑quarter earnings of The Trade Desk, PubMatic and Magnite underscore how connected‑TV (CTV) and artificial intelligence (AI) have become central to ad‑tech strategies. While The Trade Desk saw its stock tumble after warning of a second‑half slowdown, both PubMatic and Magnite reported solid revenue growth, largely from CTV inventory that is expanding at double‑digit rates. AI is also moving from a buzzword to a core capability, with PubMatic’s AgenticOS facilitating over 1,000 AI‑driven deals and Magnite describing AI as "foundational" across its platform. This convergence is prompting advertisers to reallocate spend toward programmatic video that offers measurable, brand‑safe outcomes.

At the same time, the launch of RoseBerry Media signals a new frontier for premium vertical video. Backed by heavyweight production houses such as All3Media, Banijay and Fremantle, RoseBerry is building a studio dedicated to repurposing existing shows for mobile‑first, portrait‑oriented consumption. By leveraging AI to reformat content, the company aims to meet the rapid growth of vertical TV, a format that advertisers are beginning to treat as a distinct inventory class with its own creative and measurement standards. The move reflects broader industry efforts to capture attention on smartphones, where short‑form, high‑quality video is eclipsing traditional linear viewing.

Kraft Heinz’s decision to boost ad spend to at least 5.5% of net sales – a 37% YoY increase in Q1 – illustrates how consumer brands are doubling down on media investment after a period of fiscal restraint. The company cites improved return‑on‑ad‑spend (ROAS) and a more efficient media mix as justification for the escalation. This aggressive spend aligns with a wider trend of brands seeking to reclaim market share through data‑driven, performance‑focused campaigns, especially as CTV and vertical video offer new avenues for reaching fragmented audiences. As the advertising ecosystem continues to evolve, the interplay between technology‑enabled formats and heightened brand budgets will shape the competitive dynamics of the market.