The DSP reset: After Xandr, are publishers just swapping walled gardens?

The exit of Xandr from the ad tech ecosystem has done more than just unsettle advertisers — it’s also left publishers navigating a narrower and arguably more constraining DSP landscape. With Google’s DV360, The Trade Desk (TTD), and Amazon DSP emerging as dominant players, many publishers find themselves caught in the gravitational pull of Big Tech platforms.

“DV360 and The Trade Desk are double-edged swords for publishers,” says Arjit Sachdeva, co-founder of VDO.AI,. “While they can significantly boost yield for premium inventory like video or CTV, their inherent complexities and fee structures often create bottlenecks.”

One of the most pressing concerns? The so-called “bid discount.” “There are substantial deductions that occur before the bid enters the auction, meaning an advertiser's $1 bid might effectively become an $0.80 bid for the publisher. This ‘bid discount’ directly erodes our partners' potential revenue.”

Complexity and Cost Keep Smaller Publishers Out

Even as platforms promise yield, the costs, both financial and operational are steep. “These platforms demand considerable technical expertise, which smaller publishers often lack, hindering their ability to maximize yield,” Sachdeva adds.

They highlight a “premium paradox”: “Niche, high-value audiences can incur higher SSP fees compared to lower-quality sites. This challenges the notion that premium inventory should always command better terms, suggesting a systemic issue where intermediaries extract disproportionate value.”

Further complicating matters are high minimum spends — “The Trade Desk's $300,000 to $1 million per month,” notes Schdeva hich “limit demand diversity for publishers.”

The Black Hole of Ad Spend

Fee opacity isn't just an annoyance; it's an existential threat for both sides of the ad supply chain.

According to Sachdeva, “The ISBA study revealed that publishers, on average, receive only 51% of an advertiser's spend. The remaining 49% is siphoned off by agency fees (7%), DSP fees (8%), demand-side tech (10%), SSP fees (8%), and supply-side tech (1%), with a staggering 15% remaining unattributed — the infamous ‘missing money.’”

That “missing money” alone adds up to $22.5 billion annually from a $150 billion industry.

“This opacity hampers ROI, makes it tough to measure campaign value, fosters mistrust in partnerships, and exposes advertisers to fraud and waste,” VDO.AI explains. “Publishers, on the other hand, suffer from severe margin compression, sometimes receiving as little as 2% of the original bid.”

Amazon DSP: Seductive, But Still a Walled Garden?

Among the Big Three, Amazon DSP is increasingly attractive to publishers especially those with video-led inventory.

“Amazon DSP has certainly opened new avenues for our publisher partners,” says Sachdeva. “By leveraging Amazon’s vast first-party data and extensive advertiser network, publishers can achieve higher CPMs and access significant budgets.”

But it’s not without its tradeoffs. “The concern that Amazon DSP might evolve into another ‘closed giant’ remains valid,” they add. “Publishers who become heavily reliant on Amazon DSP risk an over-dependency on a single platform, potentially diminishing their negotiation power or limiting diversification options.”

Even as Amazon touts 90% open web reach and more advertiser flexibility, “the inherent power imbalance persists,” Sachdeva warns.

Platform Loyalty Is Dead

Buzzlab CEO Sindhu Biswal cuts to the chase. “Platform loyalty right now? That’s cute, but it’s not a thing of the present anymore. Clients are less loyal than ever because trust isn’t free, and neither are hefty platform fees.”

“Whether it’s Trade Desk’s pricing backlash, Xandr’s uncertainties, or Amazon’s walled-garden opacity, the sentiment across the board is cautious at best, skeptical at worst,” she says.

And he doesn’t shy away from calling Amazon out. “It’s like Google on steroids, with an added sprinkle of e-commerce magic. But behind the convenience lies the same threat: total control… The lesson of Google wasn’t learned, it’s being repeated.”

Publishers Are Fighting Back

While DSPs promise scale, publishers are carving alternate paths — not just out of preference, but out of necessity.

“Publishers are increasingly embracing transparent, contextual, and direct ad models,” says VDO.AI, citing pressure from global data privacy regulations like GDPR, CCPA, and India’s DPDPA. “Our research shows 60% of Gen Z disengage from irrelevant ads, and 43% are concerned about data tracking.”

VDO.AI’s Contextual Engine —using NLP for brand-safe, non-creepy ad targeting is seeing traction. “We’ve seen a ~44% increase in publisher inquiries for YouTube-style native video solutions,” they note.

Performance speaks too: “Our Remote-Enabled Interactive CTV Ad Format has delivered 2x higher attention rates, a 5x increase in bottom-funnel actions, and over 10% click-through engagement.”

The Path Forward

The solution isn’t total DSP dependence, but strategic streamlining.

“The most critical change for a more equitable DSP-SSP relationship is a dramatic development in fee transparency,” says VDO.AI. “Advertisers are now actively demanding log-level data and cross-referencing take rates with publishers to identify discrepancies.”

One bright spot is Supply Path Optimization (SPO). “SPO aims to eliminate unnecessary intermediaries, creating a more direct path from advertiser to publisher… For advertisers, it means reduced costs and improved buying power. For publishers, better fill rates and monetization.”

Sachdeva believes in distinct but data-synced DSP–SSP ecosystems. “We provide bid transparency, allowing both advertisers and publishers to see the full details of the bidding process. This fosters trust and reduces inefficiencies.”

The Trade Desk: “Spirit Airlines” of Programmatic?

According to Biswal, “Calling The Trade Desk the ‘Spirit Airlines’ of DSPs might be a bit harsh, but it’s not entirely wrong… hidden fees, extra charges, no frills — but undeniably effective.”

“Until a competitor offers similar scale and precision without the nickel-and-diming, buyers will stick around,” she says. “But if another DSP steps up, simplifies pricing, and offers transparency with comparable performance, buyers will jump ship instantly.”

Advertisers Want Clarity, Not Complexity

As Russhabh R Thakkar, Founder and CEO, Frodoh., “In today’s media landscape, advertisers prioritize clarity over complexity. Transparency is paramount… Media budgets are now being allocated with greater intention.”

Siddharth Jhawar, Country Manager, Moloco India echoes the same: “Transparency is the silver bullet to assuage the level of mistrust in advertising. In today's digital age, there's no reason not to give log-level data to advertisers — but how many marketing channels provide it?”

Jhawar's view is that “the problem comes when marketers bleed money that does not give measurable outcomes — there is less and less money to be wasted on vanity metrics.”

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