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Stagwell’s Curate launch puts agencies’ ad tech ambitions in focus
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For years, DSPs and SSPs have been jockeying to control more of the digital ad supply chain. Now, agencies are increasingly throwing their hats in the ring to own more of that infrastructure themselves.
Stagwell offers the latest example. Earlier this month, the holdco launched Stagwell Curate, its own inventory marketplace. (Read the specifics about Stagwell’s curated, central ad reservoir here.)
That’s not to say Stagwell’s offering is meant to replace ad tech — at least if you ask Matt Adams, global CEO of Stagwell Media Platform. Rather, agencies like Stagwell are vying for more control over where media dollars flow.
“There’s so much inventory that is still terribly executed within the programmatic ecosystem. We need to eradicate that from our client’s media spend,” Adams said. The global CEO recently joined the Digiday Podcast to discuss Stagwell Curate and how agencies are trying to reclaim leverage in the digital ad supply chain.
Despite Adams’ point of view, it’s hard to miss the tug-of-war brewing. DSPs, SSPs and agency holdcos are all trying to become the single platform capable of replicating the programmatic supply chain. Just look at The Trade Desk’s OpenPath or Publicis Groupe’s planned acquisition of LiveRamp.
Stagwell isn’t interested in owning the supply chain. Clients still need DSP capabilities, and agencies aren’t going to build tech that’s better than Google or The Trade Desk. “That’s a naive ambition,” Adams said.
In other words, the industry should expect consolidation within the middle layer, especially as AI platforms and technology democratize more parts of the supply chain, ushering in a different hierarchy.
“The cream will rise to the top,” Adams said. “Those that are in the middle of the middle will potentially, sadly fall to the bottom.”
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