Home AI The Agentic Marketplace Is Here. Where Does That Leave DSPs and SSPs?

The Agentic Marketplace Is Here. Where Does That Leave DSPs and SSPs?

SHARE:
Comic: Agentic Programmatic

“I’ll have my agent talk to your agent.”

Move over, RTB, because there’s a new way of buying ads in town.

On Thursday, Swivel, an AI sales and ad ops automation company, and CTV ad platform Olyzon announced a partnership, bringing buy-side and sell-side agents into one conversation.

The partnership marks a step toward a fully agentic marketplace, where agents can not only determine the best inventory for an advertiser, but also access inventory that wasn’t previously available through the bid stream and execute campaigns.

Swivel’s and Olyzon’s agents connect via AdCP, an open-source standard built on top of MCP that functions as a shared language through which agents across different companies and platforms can communicate.

One of the partnership’s early brand clients is the Pierre Fabre Group, a pharmaceutical and dermo-cosmetics company that sells products from oncology treatment to facial moisturizer. Since it’s based in France, where pharmaceutical advertising isn’t permitted, its ads business is solely on the dermo-cosmetics side.

Historically, Pierre Fabre has mostly targeted French audiences across social, Global Chief Digital Officer Tom El-Bez told AdExchanger, but its work with Olyzon has focused on advertising to US audiences on CTV. In the past, Pierre Fabre’s US advertising has “not been good,” said El-Bez, so the company wanted to reconsider its US operations. Its Avène brand was already popular among Americans, he said, so it opted to focus its first campaign with Olyzon on the brand’s new scar-repairing cream called Cicalfate.

Get it straight

Olyzon (which happens to be named after a Tupac album) helps advertisers determine where to place their ads through a standard agentic workflow. Advertisers upload a campaign brief, and Olyzon’s agents refine the targeting based on data pulled from its internal database, the advertiser’s website and historical campaigns they’ve run with the brand (if applicable) to determine what shows and channels are the best fit by giving each one a relevance score, said Jules Minvielle, co-founder and CEO of Olyzon.

Then, its agents connect with Swivel’s agents. The agents fall into three camps: trafficking (developing line items and targeting and automating creation), yield (optimizing delivery and pricing for live campaigns) and seller (we’ll let you figure that one out).

Swivel, on the other hand, is focused exclusively on the sell side – “perfectly complementary” to Olyzon, said Frans Vermeulen, co-founder and president of Swivel. It pulls live data from ad servers to track shifts in demand signals and updates a campaign’s price floors and deployment accordingly.

Pierre Fabre isn’t “fully dependent” on Olyzon’s platform, said El-Bez. It still manually uploads its own product targets and media audiences. Olyzon then generates a list of channels that index most highly against Pierre Fabre’s audiences. (For instance, he said, women between the ages of 40 and 50 have apparently been watching a lot of the new age-gap reality show “Age of Attraction” lately.) Olyzon then targets the specific users watching those shows and channels.

Olyzon helps Pierre Fabre restructure its ads for CTV formats that might need to be reshaped or cut down in length. It also offers “widgets” with visual enhancements, said El-Bez, like the option to add a product image levitating in the corner of the screen.

The entire process is very straightforward, said El-Bez, thanks to the intuitive nature of Olyzon’s platform. “I think that a toddler could build a campaign within their platform, to be honest,” he added.

Winning biz

Many programmatic TV ads end up being “very simple,” said Vermeulen, especially due to RTB specifications that limit ad length and structure. The partnership addresses this concern.

With agentic buys, advertisers can experiment with more “complicated or linked experiences,” he said. For instance, if an advertiser wanted to show up on live sports, they could specifically buy the first or last slot of every ad break, or a full-screen takeover at the end of the game.

Direct, agentic buys have particularly helped Pierre Fabre as a company with a smaller budget whose business was “not really interesting” to many larger DSPs, said El-Bez. But having all channels aggregated in one place “broadens our accessible inventory,” he said.

It also saves money on the agency side, he added, since Pierre Fabre needs to work with fewer teams now that it’s working directly with the agents that orchestrate the buys.

Living in limbo

If brands no longer need as much help from agencies, then what about DSPs? Is the programmatic model outdated, now that agents can carry out transactions with even greater specificity?

From Minvielle’s perspective, the answer is yes – at least in the realm of CTV. Advertisers “end up paying a DSP and an SSP fee for something that can be processed in a different way in an agentic world,” said Minvielle.

However, not everyone agrees that programmatic is on its way out.

Sometimes, a specific DSP is the most direct way to get access to certain inventory, said El-Bez, and many agencies are still reliant on DSP partnerships. (If only one DSP offers a certain channel, Minvielle added, the agents have to plug into it the “old-fashioned way, through APIs.” How quickly the tides turn.)

Plus, if an advertiser is working across a variety of media channels with access to thousands of publishers, programmatic can cast a uniquely wide net – after all, that’s kind of the point of programmatic, Vermeulen pointed out. In that world, he said, working with a DSP or SSP “makes sense.”

But for a lot of channels, like CTV, he said, “I think there’s a better way.”

Must Read

Unity And Index Exchange Unite Behind Gaming Data In Non-Gaming Channels

For the first time, Unity’s gaming audiences will be available for ad targeting outside the Unity platform, with Index Exchange using Unity’s data to curate web and CTV inventory.

Brand-Trained Agents Can Give Marketers A Fuller View Of Their Customers

Agentic commerce company Envive builds on-site agents for brands like footwear company Clove, painting a clearer picture of what their customers are looking for.

Don’t Worry About Netflix – It’s Doing Fine Without Warner Bros. Discovery

Paramount might have outlasted and outbid Netflix in the competition to acquire Warner Bros. Discovery, but Netflix is not overly fussed about the loss.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters

Paramount’s Upfront Pitch Is About Three Things

Paramount is merging the ad tech stacks behind Paramount+ and Pluto TV, releasing a new performance product, offering more control over ad placements and introducing dynamic ad insertion in live sports.

Hard Truths For Retail Media At The IAB Connected Commerce Summit

The IAB’s Connected Commerce event in New York City this week felt to me like the retail media industry’s first sit-down explanation to a child who is now a “big kid” and must act accordingly.

Meta Is Launching An Easy Button For CAPI

Meta is simplifying its CAPI setup and teaching its pixel new tricks, including adding an AI-powered feature that automatically pulls in data from an advertiser’s website.