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Ad Tech Briefing: Microsoft’s DSP closure signals ad tech consolidation, as well as the AI arms race
This Ad Tech Briefing covers the latest in ad tech and platforms for Digiday+ members and is distributed over email every Tuesday at 10 a.m. ET. More from the series →
Earlier this week, it emerged that Microsoft is shutting down its demand-side platform, Xandr Invest. This move signals the broader strategic shift toward AI-driven advertising and an end to the old AppNexus as many once knew it.
The company informed clients on May 14 that the DSP would cease operations by Feb. 28, 2026, citing misalignment with its evolving priorities.
The core reason for the closure is Microsoft’s belief that traditional DSPs cannot support the kind of private, personalized, and conversational advertising experiences it envisions for the future. For many, this is a harbinger of consolidation in ad tech and a sign that there is only so much advertiser budget to go around.
Instead, Microsoft is consolidating its efforts around a single, AI-powered buying platform — the Microsoft Advertising Platform — central to delivering better business outcomes in a more privacy-centric, agentic digital environment.
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