Ad Tech Briefing: Microsoft's DSP closure signals ad tech consolidation, as well as the AI arms race
Briefly

Microsoft is shutting down its demand-side platform, Xandr Invest, by February 28, 2026, due to misalignment with its strategic direction focusing on AI-driven advertising. The decision highlights a move away from traditional DSPs towards personalized, conversational ad experiences, indicating a larger trend of consolidation in ad tech. Microsoft aims to streamline its offerings through the Microsoft Advertising Platform, enhancing business outcomes while introducing AI initiatives like generative capabilities within Copilot and a new ad voice experience. Layoffs are expected as a result of the restructuring.
Microsoft is shutting down Xandr Invest as part of a strategic shift toward AI-driven advertising, emphasizing the need for personalized, privacy-centric experiences.
This closure reflects a larger trend in ad tech where conventional platforms are being sidelined, prioritizing AI capabilities like automated ad creation.
With Xandr Invest's closure, Microsoft is laying off employees and consolidating its advertising efforts around a unified AI-powered platform to enhance business outcomes.
The move indicates a significant shift towards curation and integrated tools, as Microsoft accelerates its focus on automated and conversational advertising strategies.
Read at Digiday
[
|
]