Xandr DSP Shutters, Triggering Budget Shift to DV360, Amazon DSP & the Trade Desk
Paris – October 26, 2023 – The closure of Xandr’s demand-side platform (DSP) is accelerating a significant reallocation of advertising budgets in France, with DV360, amazon DSP, and The Trade Desk poised to benefit most, according to recent data and industry analysis. The move follows a period of perceived instability and reduced investment in research and growth at Xandr, prompting advertisers to diversify their programmatic spending.
Historically a key Xandr customer, Biggie Group began shifting investments towards other DSPs as early as last year, citing “Less stability on the part of Xandr and less efforts in terms of R&D,” according to VP Operations & Tech Damien Mora. The agency now primarily utilizes DV360, The Trade Desk, and Amazon DSP. Mora highlights Amazon DSP’s “very advantageous offers, especially in terms of guaranteed programmatic” as a key draw.
A significant advantage for amazon DSP lies in its direct access to owned inventory, allowing “To have much less business tensions with other SSPs” and greater cost flexibility, Mora explains. Amazon is leveraging this position by expanding inventory integrations, recently adding partnerships with SiriusXM Media, Roku, and Disney Advertising.
Market share data from Adomik,as of September 10,illustrates the shifting landscape. DV360 leads with 35.2% of the French display market share on the open web (excluding audio),followed by Google ads (30.2%), The Trade Desk (8%), Amazon DSP (6.9%), and Criteo (4.1%). Xandr has fallen to seventh place with just 3.5% market share, trailing Teads.
The decline in Xandr investment began in may,coinciding with the announcement of its closure,notes Adomik Chief Product Officer Jean-François Bernard. Even accounting for typical summer slowdowns, the loss is described as a “long-term structural trend.” Several advertisers, including Auchan and Bosch, fully halted Xandr spending during the summer, redirecting funds to choice DSPs.
Between January and August, Amazon DSP experienced a substantial increase in market share, rising from 3.7% to 7.2% (+3.5 points). the Trade Desk also saw growth, albeit at a slower pace (+1.2 points) over the same period.