DSPs are losing relevance due to increasing complexity in converged TV supply chain

New Ideas in MarketingEssential news for marketers, summarised by YouGov
May 04, 2020, 2:20 PM UTC

Advertisers have reduced the number of DSPs they work with, by 40% on an average, between January 2016 and April 2018.

This piece argues with consumers spending more time on closed web ecosystems like Facebook, Demand Side Platforms (DSPs) are becoming less relevant. DSPs represent a large part of the ad tech tax, and can potentially expose advertisers to the risk of ad fraud and data loss.

While linear TV advertising is expanding and premium video platforms are increasing, the converged TV supply chain is becoming more complex. Because of this increasing complexity, middlemen categories like DSPs are less likely to strive in the long run.

Marketers needed DSPs for digital display advertising to aggregate inventory, target the audiences, and execute buys across different sources. But, with converged TV and OTT capabilities, advertisers would no longer need such a mechanism to target consumers.

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