Maya Robertson
Microsoft has announced it will officially shut down its demand-side platform, Microsoft Invest, by the end of February 2026, marking a decisive shift in its advertising strategy. The move reflects Microsoft’s growing emphasis on AI-driven, first-party advertising solutions and a step away from third-party programmatic media buying.
Formerly known as Xandr DSP and originally AppNexus, Microsoft Invest was once a sophisticated platform with deep capabilities geared toward algorithmic media buyers. Despite its legacy, the platform is being phased out in favor of a new ad-buying experience powered by Copilot, Microsoft’s generative AI assistant. According to Microsoft, the transition will better align with its long-term focus on conversational, personalized, and agentic digital engagement.
The shift comes as Microsoft restructures its advertising strategy around its own ecosystem of products. While Microsoft Monetize—its supply-side platform for publishers—will continue, the company is eliminating direct DSP offerings in favor of connecting advertisers to Microsoft’s first-party assets, including Bing, Xbox, Outlook, MSN, Edge, Windows, LinkedIn, and its broader publisher network. These integrations will be enhanced through Copilot and Microsoft’s data infrastructure to enable more predictive, real-time ad solutions.
Kya Sainsbury-Carter, head of Microsoft Advertising, emphasized in a company blog post that the existing DSP model no longer supports the level of privacy, personalization, and automation Microsoft aims to deliver in the evolving digital landscape. Instead, Microsoft plans to rely on AI to handle everything from creative generation to campaign measurement, allowing advertisers to work within a unified, privacy-safe environment tailored to user intent and attention.
This pivot echoes broader industry trends, with major platforms increasingly consolidating advertising within their own walled gardens. Meta, Amazon, and Google have each moved toward prioritizing internal properties over open web ad tech, citing regulatory pressures, privacy risks, and the complexity of third-party ecosystems. Microsoft appears to be following suit by focusing exclusively on its high-quality, logged-in audience across devices and services.
Advertisers who have relied on Microsoft Invest will still be able to access Microsoft and partner inventory through external DSPs that meet the company’s standards for privacy and transparency. Microsoft says it is committed to supporting clients through the transition to minimize disruption and provide access to tools that align with the AI-driven advertising future it envisions.
On the supply side, Microsoft is continuing to invest in Microsoft Monetize, giving publishers enhanced control through AI-powered optimization, analytics, and real-time management tools. With products like Microsoft Curate, publishers can build private marketplaces, monetize first-party data, and tap into exclusive demand sources.
Comments
Loading…