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.
More in Media Buying
Omnicom confirms the pending exit of influential Annalect chief Slavi Samardzija
The CEO and architect of Omni departs, hinting at pending changes as Omnicon continues $13.5 billion IPG takeover bid.
WPP has its next CEO – but what do clients make of the heir apparent?
The ad industry’s hot take industrial complex went into overdrive upon yesterday’s WPP coronation. Clients are keeping their counsel, however.
Who is Cindy Rose, WPP’s insider-outsider pick for its next CEO?
The British holding company has named its next CEO — a Microsoft executive and board member of six years.