

The Xander Shutdown And The Future Of DSPs
15 snips May 21, 2025
Microsoft's impending shutdown of Xandr raises questions: is it a strategic pivot towards AI or a retreat? The discussion highlights why big tech struggles with ad tech rollups and how AI is disrupting traditional models. Could we see the emergence of a few mega-DSPs or a plethora of micro-platforms? The conversation also reveals insights on the challenges of merging ad tech firms and the innovative pathways ahead in digital advertising. Plus, think of Microsoft’s moves as akin to Harvard's revolutionary changes in linguistics!
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Microsoft's Bold AI-Inspired DSP Exit
- Microsoft is shutting down Xandr because the current DSP model can't adapt to an AI-driven, agentic advertising world.
- The company views this move as part discipline and part focus on their AI and cloud priorities.
Harvard Linguistics Anecdote
- Harvard canceled its linguistics major because MIT led in the field and Harvard didn't want to be second.
- Joe related this to Microsoft's decision to stop investing in Xandr to avoid playing a losing game.
Why Big Companies Fail in Ad Tech
- Big companies buying ad tech often fail due to ad tech's dynamic, fast-changing nature.
- Telcos and software companies plan long term, but ad tech requires rapid adaptation, making acquisitions difficult to succeed.