A Landmark Partnership in Digital Advertising

Microsoft Corp. has selected Amazon.com Inc.’s demand-side platform (DSP) as its preferred partner for customers transitioning from the soon-to-be-shuttered Microsoft Invest DSP, marking a significant shift in the programmatic advertising ecosystem. This announcement, detailed in a post on Amazon Ads, underscores Amazon’s growing dominance in ad tech as Microsoft phases out its legacy tools by February 2026.

The move comes amid Microsoft’s broader strategy to integrate artificial intelligence into its advertising offerings, effectively sunsetting older systems like Invest, which was acquired through the Xandr deal. Advertisers using Microsoft Invest will now have a streamlined path to Amazon’s DSP, which allows programmatic buying across Amazon’s properties and third-party sites.

Implications for Advertisers and Agencies

This partnership is poised to consolidate power in the hands of walled-garden platforms, where data-rich giants like Amazon can leverage first-party insights for targeted campaigns. As reported by Digiday, Amazon’s DSP has been aggressively expanding, recently securing deals with Netflix Inc. and Spotify Technology SA, further tightening its grip on premium inventory.

For agencies, the transition raises questions about data portability and targeting capabilities, particularly the loss of LinkedIn-specific features from Microsoft. A blog on Programmads advises agencies to evaluate alternatives while planning migrations to avoid disruptions in programmatic stacks.

The Rise of Amazon’s Ad Empire

Amazon’s DSP, described on its own site as a tool for reaching audiences on and off Amazon, has seen explosive growth, fueled by the e-commerce giant’s vast consumer data. This latest alliance with Microsoft follows Amazon’s $1.9 billion investment in its Delivery Service Partner program, as noted in a release from AboutAmazon, though that’s separate from ad tech, it highlights Amazon’s broader operational expansions.

Industry insiders view this as part of a trend toward AI-powered advertising, with Microsoft redirecting focus to its own ecosystem. An analysis in Xenoss suggests the shutdown signals a pivot from open-web tools to closed, AI-native systems, potentially marginalizing smaller DSPs.

Competitive Dynamics and Future Outlook

The partnership could accelerate Amazon’s ad revenue, already a multibillion-dollar business, by absorbing Microsoft’s client base. Netflix’s integration into Amazon’s DSP, starting in Q4 2025 across key markets, as covered by PPC Land, exemplifies how Amazon is becoming a one-stop shop for premium video inventory.

However, challenges remain, including regulatory scrutiny over market concentration. Publishers, as discussed in a Medium article by Alan Ronis, must adapt to this shift, potentially facing reduced bargaining power in the open web.

Strategic Shifts in Programmatic Buying

For B2B brands diversifying beyond Google and Microsoft, Amazon’s DSP offers new avenues, as shared in a 2022 Reddit thread on r/PPC, though experiences vary based on scale. Agencies are urged to test integrations early to mitigate risks.

Ultimately, this deal reinforces Amazon’s position as a programmatic powerhouse, blending commerce signals with broad reach. As the industry evolves, advertisers will need to navigate these changes to optimize their strategies in an increasingly consolidated arena.