Media buyers are reconsidering their demand-side platform (DSP) partnerships amid ongoing changes in the ad tech landscape. Attendees at Digiday’s recent Programmatic Marketing Summit expressed interest in shifting spending toward more transparent platforms that better meet client needs.
A virtual town hall held on June 6, under Chatham House Rule, revealed concerns about market leaders’ risk-reward profiles and highlighted a potential need for consolidation in the DSP sector.
Microsoft’s Exit from Xandr DSP
Microsoft Advertising’s decision to close its Xandr DSP has sparked significant discussion. Industry insiders indicated that the platform’s close ties to Netflix limited its appeal. Advertisers viewed Netflix inventory as costly and underdeveloped, leading to low adoption at launch.
Many advertisers delayed engagement, awaiting reduced prices and improved measurement tools. This frustration primarily impacted Xandr’s reputation negatively, marking the closure as a notable setback.
Amazon’s Growing Influence Raises Mixed Reactions
Amazon Ads has emerged as the third-largest DSP, challenging The Trade Desk for second place. Its zero-fee supply-side platform offers publishers a competitive edge, though participants described its capabilities as still evolving.
Amazon provides access to its Marketing Cloud data, regarded as more accurate first-party data compared to third-party sources used by competitors. However, some caution against Amazon becoming a dominant, inflexible player that prioritizes its own interests over advertisers’. “Amazon is not on our side,” one source said, adding that it will likely push competitors out over time.
Customer Support Concerns with Google
Despite its market dominance, Google faces criticism from media buyers for inadequate customer support, a problem echoed during recent antitrust proceedings. Sources reported limited assistance unless spending reaches extremely high levels, often receiving only generic help-center responses.
Some buyers remain loyal due to Google’s strong inventory performance but are watching antitrust developments closely. A potential breakup affecting Google’s DV360 platform could dramatically shift the DSP market dynamics.
The Trade Desk: Sophisticated but Costly
Participants praised The Trade Desk for its advanced tools but criticized its complex and opaque fee structures. Comparisons to Amazon’s simpler DSP highlighted frustrations with The Trade Desk’s frequent changes and difficult-to-access documentation.
One participant described the rollout of new features like the Kokai and Deal Desk as chaotic, making integration and usage challenging. The lack of pricing transparency requires significant effort to fully understand a campaign’s total cost.