Why Advertisers Should Transition from Xandr DSP to Amazon DSP Following Microsoft's Exit
May 15, 2025
Microsoft’s recent announcement that it will be shuttering its Xandr demand-side platform (DSP) has sent shockwaves through the programmatic advertising ecosystem. The news leaves advertisers and agencies scrambling to find a viable alternative that not only meets their current media buying needs but also sets them up for future success in an increasingly competitive and data-driven marketplace.
Among the available options, Amazon DSP emerges as the most strategic successor to Xandr, offering advanced targeting capabilities, unparalleled first-party data, and a closed-loop performance ecosystem. Here's why now is the time for advertisers to make the switch.
Xandr DSP, formerly part of AT&T’s ad tech portfolio and acquired by Microsoft in 2021, was lauded for its robust video and CTV capabilities, transparent marketplace, and strong relationships with premium publishers. However, the DSP landscape has shifted dramatically over the last two years, driven by privacy regulations, cookie deprecation, and the rise of retail media networks.
Microsoft’s decision to sunset Xandr DSP marks a strategic pivot to focus on other areas of advertising technology and AI-powered media. The company will continue supporting some Xandr assets, like the monetization platform for publishers, but the demand-side tools are being retired in phases through late 2025.
With third-party cookies on the decline, access to robust first-party data is no longer optional—it’s essential. Amazon DSP offers access to Amazon’s extensive, deterministic shopping and behavioral data, which includes purchase history, search behavior, and even media consumption across its ecosystem (e.g., Prime Video, Twitch).
This gives advertisers the ability to target users with incredible precision, something Xandr simply could not match.
Amazon DSP provides direct access to high-quality inventory across Amazon-owned properties and thousands of third-party sites and apps. This includes exclusive placements on Fire TV, IMDb, Freevee, and other connected TV (CTV) environments—key areas of growth for programmatic buyers.
Former Xandr clients with a strong emphasis on CTV will find Amazon DSP’s capabilities to be a powerful upgrade.
Unlike traditional DSPs, Amazon offers closed-loop attribution, which allows advertisers to track ad exposure to actual purchase behavior—both online and in-store. This is especially valuable for consumer goods, retail, and eCommerce brands that previously used Xandr for awareness or upper-funnel targeting.
The ability to directly correlate ad spend to ROI sets Amazon DSP apart from generalist platforms.
Amazon is the largest and most mature retail media network in the world. Advertisers who shift to Amazon DSP can tap into holistic campaigns that combine media buying with sponsored product listings, influencer programs, and more—all within a single ecosystem.
This creates a seamless brand experience from discovery to purchase.
For advertisers and agencies currently using Xandr DSP, the transition timeline is tight. Microsoft is phasing out the platform by the end of 2025, with some functionalities already beginning to wind down.
Here’s how to prepare:
The closure of Xandr DSP is the end of an era, but also a clear signal for advertisers to reassess their media buying strategies. In a market increasingly defined by privacy, performance, and retail media convergence, Amazon DSP represents not just a replacement, but an upgrade.
Advertisers who make the switch now will be better positioned to thrive in the post-cookie, data-rich future of programmatic advertising.
Looking for help transitioning from Xandr to Amazon DSP? Book a call with us today.
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