Amazon x Microsoft Partnership – What’s Going On

Amazon and Microsoft just announced a new partnership that’s pretty big for the ad world.
In short:

• Amazon DSP will now become Microsoft’s preferred DSP partner.
• Microsoft Monetize (their SSP) will join Amazon’s Certified Supply Exchange as a preferred supply partner.

Basically, Microsoft is closing down its own DSP (called Microsoft Invest) and helping its advertisers move across to Amazon’s DSP. At the same time, Amazon DSP will now get direct access to Microsoft’s web inventory through Microsoft Monetize.What It Means
For advertisers:

• If you were using Microsoft Invest, your campaigns will move to Amazon DSP, smoother transition and continued access to inventory.
• You’ll now be able to reach Microsoft’s inventory (web placements, apps, etc.) directly from Amazon DSP, but with the benefit of Amazon’s shopper data layered in.
• Expect a bit of setup work (migration, new targeting setup), but the end goal is more reach and better audience data under one roof.

For the wider market:

• It’s another sign of consolidation in ad tech, fewer independent platforms, more big stacks combining data, demand, and supply.
• Amazon strengthens its position as one of the most dominant DSPs out there.
• The Trade Desk and other independent DSPs will feel the squeeze.

We believe that this is a smart and inevitable move beacuse:

• Microsoft wanted out of the DSP space and picked Amazon as the best landing spot for its clients.
• Amazon gains both new advertisers and new inventory so it is double win.
• For brands, it’s good news short-term (more reach, stronger data). Just be mindful of how dependent you become on Amazon’s stack over time.