The END of one-size-fits-all programmatic solutions
Traditional DSP selection processes have historically followed a predictable pattern - especially considering the high cost of entry. The typical approach has been: Which single partner or solution can I choose that will check most of my boxes while unfortunately still not being a perfect fit for all of my needs or use cases? The decision is normally driven by a combination of “What are the platform fees and minimums?” versus an analysis of a features checklist and functionality comparison.
What you end up with is a platform that is “good” across a large swath of potential use cases, offering versatility at the expense of specialized excellence. Or the opposite - the best in-class platform for a specific high-value need that may fall short of your needs across other, albeit less important priorities.
More often than not, today's sophisticated media buyers are increasingly focused on specific programmatic applications rather than general-purpose capabilities. This shift challenges the conventional wisdom about what makes a DSP valuable.
The NEXT ERA of programmatic solutions - centered around specialized solutions
The already fragmented programmatic buying landscape appears to be fragmenting further - this time into purpose-built solutions designed to address specific advertiser needs. Tomorrow's successful programmatic platforms will likely be defined less by comprehensive feature sets and more by their ability to solve specific advertiser challenges with precision.
This evolution represents a natural progression as the digital advertising ecosystem matures:
- Increased emphasis on specialized capabilities over general-purpose tools
- Greater focus on measurable business outcomes rather than technical specifications
- More transparent value exchange between platforms and advertisers
- Elevated importance of integration capabilities over all-in-one solutions
Strategic implications
For media buyers, this evolution demands a more thoughtful approach to platform selection. Rather than seeking the most feature-complete solution, organizations should:
- Identify their primary programmatic objectives with precision
- Evaluate platforms based on specific use-case excellence
- Consider unbundling programmatic functions across specialized providers
- Prioritize platforms that deliver measurable value against specific KPIs
For technology providers, opportunity lies in moving beyond the undifferentiated DSP model toward purpose-built solutions that address clearly defined advertiser needs.
What comes next?
Tier 1 DSPs, or the core walled garden platforms, are incredibly entrenched at the holding company level, and the DSP market has been called “over-saturated” by many people, many times, for many years. With that said, I feel like this may be a unique point in time for existing Tier 2 DSPs to build and innovate, or for some all together new players to make their way on to the scene that can solve for real problems that modern media buying teams face.
Rather than relying on a single, all-in-one DSP, the industry is moving toward an open garden ecosystem, one that prioritizes neutral access to inventory, AI-powered intelligence, and media strategies built around business outcomes, not platform constraints.
Other important developments could include:
- Bespoke DPSs powered by AI only features - needed specifically to achieve a brand’s KPI’s without expensive features and tools that would go unused by them
- The return of ‘official’ agency trading desks or brands getting even more aggressive in taking programmatic media buying in-house
- Curation platforms redefining the role of DSPs - shifting DSPs from the role of "brain" of the operation to that of "plumber," enabling advertisers to move away from black-box decision-making while SSPs become more demand-focused, blurring the traditional lines between DSPs and SSPs.
There is never a dull moment in AdTech! We seem to be approaching a crossroads moment in time where the legacy definitions and roles of platforms—established nearly two decades ago—are being forced to evolve or potentially watch the industry they helped usher in move forward without them. Interesting times!
Let’s keep the conversation going, feel free to reach out:
📩 Jude O’Connor, VP of Growth
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