Media buyers are increasingly reviewing their demand-side platform (DSP) partnerships, aiming to allocate budgets to more transparent and client-aligned platforms. This sentiment emerged during Digiday’s Programmatic Marketing Summit and a subsequent virtual town hall held on June 6 under Chatham House Rule.
Participants discussed the evolving ad tech landscape, including the impact of rising players and the need for market consolidation.
- Microsoft’s Closure of Xandr DSP: Microsoft Advertising’s decision to shut down Xandr’s DSP has created opportunities for smaller competitors. Attendees noted that Xandr’s flagship relationship with Netflix hindered its success, citing expensive and limited Netflix inventory and inadequate measurement options. Many advertisers held off due to high costs, leading to frustration directed at Xandr rather than Netflix.
- Amazon DSP’s Growing Influence: Amazon Ads has become the third-largest DSP, leveraging free supply-side platform services for publishers as a competitive edge. Though still developing, Amazon’s access to first-party data through Amazon Marketing Cloud offers advantages over other platforms relying on third-party data. Some buyers expressed concern over Amazon’s expanding dominance and its potential to replicate Google’s market power, emphasizing Amazon’s focus on self-interest.
- Customer Support Challenges at Google: Despite Google’s leading market position, media buyers expressed dissatisfaction with its advertiser support, describing it as limited and reliant on generic help center articles—even for large spenders. The ongoing antitrust proceedings against Google have buyers monitoring potential changes, including the possible separation of DV 360, which could disrupt the DSP market.
- The Trade Desk’s Sophistication and Pricing Concerns: The Trade Desk was recognized as the most advanced DSP, yet participants criticized its complex fee structure and high costs. Users described its ongoing Kokai platform rollout and Deal Desk features as difficult to navigate, contrasting it with Google’s more predictable API functionality. Transparency around fees remains a significant concern.
Overall, media buyers are reassessing their DSP strategies amidst shifting dynamics, seeking platforms that balance efficiency, transparency, and client service.