Home Data-Driven Thinking Ad Tech’s Last Neutral Party Just Picked A Side

Ad Tech’s Last Neutral Party Just Picked A Side

SHARE:
Jonathon Shaevitz, co-founder, GrowthCode

When Publicis Groupe announced its $2.167 billion acquisition of LiveRamp, the industry found itself asking a question it had never had to ask before. LiveRamp wasn’t one identity vendor among many. It was the connective tissue letting competing agencies, brands and platforms move data and identity across each other’s walled gardens, on the understanding that the pipes themselves answered to no one. 

No other company in ad tech held that position, which is exactly why the LiveRamp acquisition has raised a question with no precedent: Can shared infrastructure survive being owned by a direct competitor of the companies that rely on it? 

Publicis offered the predictable defense. CEO Arthur Sadoun called the deal a “nonevent” for clients, since “LiveRamp technology is neutral by design.” That’s a claim about code, not incentives. Code doesn’t set product road maps or pricing. A direct competitor does.

Omnicom answered with actions instead. Originally contracted with LiveRamp through Q1 2028, CEO John Wren moved the drop-dead date up by nearly a year, telling investors: “I don’t see there is any way that you can get any value keeping LiveRamp independent of the rest of your infrastructure.”

WPP reached the same conclusion on its own. At Cannes, CEO Cindy Rose confirmed WPP had stopped using LiveRamp. Asked if it was tied to Publicis, her answer left nothing to interpretation: “What do you think?”

The open question now is what the market looks like in three years.

Three holding companies, one verdict

Follow the actions, not the statements, and the answer is already visible: The major holding companies are building their own identity infrastructure.

Publicis is buying the connective tissue outright. Omnicom, through its acquisition of IPG, now holds Acxiom, arguably the most valuable identity asset in the industry. WPP has been here before. It built Xaxis into a market-leading activation business through years of sustained investment. InfoSum gives WPP the clean room piece, and WPP’s history says it will build or buy the rest. Dentsu and Havas haven’t moved yet. Expect them to.

The same consolidation is running through the rest of the market. TransUnion spent years assembling an identity stack: TruSignal, Signal, Tru Optik, then Neustar for $3.1 billion. Experian bought Tapad, then Audigent. Zeta bought LiveIntent. ID5 bought TrueData. Each is a proprietary system in the making, connecting the open web back to a graph one company owns.

That’s the market taking shape: a handful of proprietary identity stacks, each controlled by a company with its own competing interests, where a single neutral interconnect used to sit. The holding companies just told you what they think of that arrangement. Nobody with capital chose dependence.

Consolidation cuts two ways

For the acquirers, every deal builds a proprietary lane. For everyone else, it produces something stranger: homogenization. As TransUnion and Experian get bigger, they increasingly buy from the same handful of underlying data suppliers. Two “proprietary” graphs assembled from the same licensed feedstock aren’t proprietary in any way that matters. Scale converges. The genuinely scarce asset isn’t the biggest graph; it’s the signal you generate and control yourself, that nobody else can license.

The value of that signal is about to compound. Publicis didn’t frame the LiveRamp deal around activation. It framed it around building smarter agents, with Sadoun saying the quiet part out loud in the announcement itself: “Agents built on co-created data learn and improve with every signal,” unlike competitors training their agents on stagnant, generic data.

As media buying shifts to agentic systems, identity signals stop being just targeting inputs and become training data. The company that controls the pipes controls the signal, and the signal improves the algorithm itself. That’s a feedback loop, and feedback loops reward ownership. While holding companies build self-reinforcing loops on proprietary signals, everyone else is left renting graphs increasingly assembled from the same feedstock. The gap between owned signal and licensed signal is about to widen, and it widens fastest for whoever owns nothing.

This leaves independent agencies, mid-market brands and publishers with the question that matters most. The holding companies moved because they ran the math on dependency and didn’t like the answer. What share of your addressable identity runs through pipes a direct competitor controls? When your infrastructure options are LiveRamp under Publicis, or whatever emerges from Omnicom, WPP or the next roll-up, are you willing to run your addressability and training data through an asset owned and controlled by a potential competitor?

Publicis didn’t create that problem. It just started the clock.

Data-Driven Thinking” is written by members of the media community and contains fresh ideas on the digital revolution in media.

Visit GrowthCode’s website and follow AdExchanger on LinkedIn.

For more articles featuring Jonathon Shaevitz, click here.

Must Read

The Trade Desk’s Revenue Growth Stalls As Big Brands Tighten Their Belts

“Our revenue growth is below our expectations and below the standard we hold ourselves to,” The Trade Desk CEO Jeff Green told investors.

Comic: Measuremints

Nielsen Is Acquiring DoubleVerify For $2.15 Billion

On Thursday, Nielsen entered into a definitive agreement to acquire DoubleVerify in an all cash transaction valued at approximately $2.15 billion.

WBD Hopes To Buoy Linear TV Long Enough For Streaming To Find Its Way

Warner Bros. Discovery cited softer ad sales growth and the continued decline of linear TV as its reasons for missing investor expectations in Q2. Unsurprisingly, streaming ads are the biggest bright spot on WBD’s earnings report card.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Comic: The Mobile Freight Train

AppLovin Asks For Patience As It Grows Its Ecommerce And Consumer Ads Business

“We’re deemed a new bucket, so a testing category,” AppLovin CEO told investors regarding its nascent consumer and ecommerce ads business. “And to graduate up takes time. This stuff compounds over quarters and years.”

Magnite Doesn’t Want To Be A DSP. It Just Wants To Own The Decisioning Layer

On Wednesday, Magnite CEO Michael Barrett painted a picture of a company that’s edging into the buy side by adding more DSP-style capabilities for planning and activation.

For Cuisinart, AI-Generated Ads Are As Handy As A Kitchen Blender

Cuisinart’s marketing team has been eager to take advantage of generative AI-based creative.