2025: The Race for The Best DSP

The Non-Expert's On-the-ground insights by Diana C.

Why the Next Big Investment in Ad Tech is on Buy-Side Technology, Data (AI), and DSPs

The advertising technology (Ad Tech) landscape has seen explosive growth over the past decade, largely driven by advancements in sell-side platforms (SSPs) and publisher tools. However, as brands, agencies, and advertisers become increasingly sophisticated, the next frontier of investment is clear: buy-side technology, data (AI), and demand-side platforms (DSPs).

1. The Buy-Side Shift: Why It’s Time to Invest

Historically, much of the innovation in Ad Tech has focused on optimizing the sell-side—helping publishers and content owners better manage, package, and sell their inventory. While this was necessary to create today’s digital advertising infrastructure, the buy-side is now poised for a transformation.

Buy-side technology, which encompasses tools and platforms used by advertisers and agencies to buy media, has traditionally lagged behind. However, with rising expectations for precision targeting, cost efficiency, and measurable outcomes, brands are increasingly demanding more from the tools they use to execute their campaigns. Several major industry players have already recognized this trend, recently acquiring DSPs to bolster their capabilities. This includes notable acquisitions such as AT&T's acquisition of AppNexus (now Xandr) and Freewheel's purchase of Beeswax, Premion's purchase of Octillian, and Cadent's purchase of Adtheorent.

These acquisitions signal a broader trend: investment in cutting-edge buy-side technologies allows advertisers to optimize every dollar spent and ensure that campaigns deliver maximum impact.

2. Data and AI: The Fuel Driving Buy-Side Innovation

Data has always been the backbone of digital advertising, but we’re now entering an era where artificial intelligence (AI) and machine learning (ML) will dramatically enhance how data is used. AI-powered systems can process and analyze vast amounts of data at speeds and accuracies that far surpass human capabilities, offering critical insights for real-time decision-making.

When integrated into DSPs and other buy-side tools, AI-driven solutions can:

• Optimize bidding strategies by identifying the highest-performing inventory in real-time.
• Enhance audience segmentation using more granular data, creating hyper-targeted campaigns.
• Predict campaign outcomes and adjust tactics dynamically, maximizing ROI.
• Improve cross-channel strategies by leveraging data across linear TV, CTV, digital, and emerging media (an interesting topic I'll post an article on next week).

As privacy regulations tighten and cookies continue to phase out, first-party data will become more valuable than ever. Investments in AI-driven data analytics will help advertisers unlock the full potential of their data, enabling them to target more effectively without sacrificing consumer trust.

3. DSPs: The Heart of the Buy-Side Ecosystem

Demand-side platforms (DSPs) are at the core of modern advertising operations, enabling advertisers to programmatically buy inventory across a wide range of digital channels, from display and video to social media and CTV. As several major players continue to make acquisitions in this space, the future of DSPs is evolving beyond simple inventory procurement to becoming holistic buying engines that integrate with various data sources, AI models, and even creative optimization tools.

Today’s DSPs must do more than simply aggregate supply. They need to offer:

• Cross-channel planning capabilities to allow advertisers to manage all media types (digital, TV, out-of-home) within a single platform.
• Advanced measurement and attribution tools to demonstrate the true impact of each media dollar.
• Data partnerships that provide deep audience insights while remaining compliant with evolving privacy regulations.
• Seamless integration with CRM systems to help brands leverage first-party data in a privacy-conscious manner.

As media buying becomes more complex, DSPs will play an increasingly critical role in delivering personalized, measurable, and impactful campaigns. The recent acquisitions in this space highlight the growing importance of DSPs, positioning them as a prime area for investment as advertisers seek platforms that can handle the scale and sophistication required by modern campaigns.

4. The Value of a Holistic Approach

Investing in buy-side technology, data (AI), and DSPs isn’t about upgrading a single component of your ad tech stack—it’s about embracing a more holistic approach to media buying. As marketers seek to make their campaigns more accountable and data-driven, they will need a suite of integrated tools that allow them to:

• Unify campaigns across platforms and media types for better control and performance.
• Measure outcomes accurately and tie ad spend directly to business goals.
• Automate decisions at every level of the funnel, from audience selection to creative optimization and bidding strategies.

Conclusion: The Buy-Side Revolution Is Here

As advertisers demand greater efficiency, precision, and transparency, the next wave of innovation in Ad Tech will be driven by investments in buy-side technology, data (AI), and DSPs. The series of recent acquisitions in the DSP space confirms that this is not only an emerging trend but a necessary evolution for those looking to stay competitive in the digital advertising ecosystem.

For investors and innovators looking for the next major opportunity in Ad Tech, the buy-side revolution is here—and it’s a space that’s ripe for transformation.