Go to a major DSP’s website, and you’ll be greeted with some sort of statement like “we are the leading omnichannel ad buying platform” with call-outs about data, analytics, insights, or channels. Below are taken directly from 5 different DSPs’ homepages:

The leading independent software platform that enables brands and agencies to plan, buy, measure and optimize their global advertising.

Combine data, omnichannel media and machine learning in a single programmatic platform.

The only solution that gives you access to all the data and every activation channel.

Precision targeting across display, video, mobile, native, audio and TV — and all devices

Gives you access to top-tier inventory across screens and formats, and the real-time insights you need to make your buys count.

This is the quickest way to summarize a trend in the ad tech industry: DSPs are becoming commoditized.

A few years ago, demand-side platforms saw strong differentiation. Some DSPs were focused on optimization algorithms. Some DSPs were built on data. Some DSPs were focused on their inventory (either access to more sources or O&O). There were display DSPs, video DSPs, and mobile DSPs.

However, as the industry has matured and programmatic has become mainstream, advertisers want to consolidate the amount of ad buying platforms they use. In reaction to this trend, DSPs have all tried to become the only platform an advertiser needs to leverage to manage their full ad campaign. Thus, the platforms have started to look more and more similar. The differentiator for one DSP a few years ago is now available in most platforms. See below for some examples:

There used to be only a few online video platforms in the industry, but now traditional display DSPs like DBM offer video advertising. Similarly, former pure-play video DSPs like TubeMogul now also offer display advertising.

Rocketfuel’s original point of differentiation was its optimization algorithm. Now, it is expected for a DSP to have an algorithm that optimizes towards KPIs.

The Trade Desk was originally self-service only (and one of the first platforms designed for self-service teams). Now, most platforms offer both self-service and managed service.

You can see the same trends in DSPs integrations:

Most DSPs are integrated with all major SSPs and exchanges, so they can all access the same inventory.

Most DSPs are integrated with Nielsen, comScore, IAS, MOAT, and DoubleVerify.

Most DSPs have the same 3rd party targeting partners, including Proximic, Grapeshot, BlueKai, Lotame, etc.

Even the identifying features of platforms are being copied. For example, the Trade Desk’s bread-and-butter feature – bid multipliers – are being added to competitors. This, too, will continue to accelerate.

Where will this leave us? It is likely that the core functionalities of DSPs are going to be the same. This does not mean that all DSPs are going to be completely identical – there will still be differentiators, just not as many as there used to be. The main differentiators between platforms won’t be the platforms themselves. Instead, they will be:

Proprietary data: DSPs that have exclusive access to unique data

Media properties: DSPs that have exclusive access to unique inventory

Technology stack: DSPs that are fully integrated with differentiated products in its marketing stack

Service: DSPs that go above and beyond to make clients happy

Independence: DSPs that don’t have a conflict of interest by selling ad inventory

First-to-market: DSPs that are the first to offer a new product, capturing market share before competitors catch up

Who will end up owning each of these differentiators? Can one DSP straddle multiple differentiators? How much will each differentiator matter to advertisers? These are the next big questions to answer.