The news: Budget pressure and new AI coding capabilities are challenging tool and software-as-a-service (SaaS) providers, resulting in media buyers slashing their ad tech vendor lists, per Ad Age. The primary target—middleware vendors that lack deep specialization.
Lou Paskalis, founder and CEO of AJL Advisory, told Ad Age, “If a marketer has 1,000 ad tech providers that they’re working with, I would imagine that number will be closer to 200 in just a couple of years.”
Zooming out: AI has made it easier for media teams to build tools internally, using interfaces like Claude Code to recreate capabilities they once bought from multiple vendors.
Cost savings are the obvious draw, but data quality is the bigger benefit. Every vendor in the chain can add governance headaches and degrade data with each handoff, per Ad Age. A leaner stack preserves the strategic intelligence that advertising generates.
The shift is already visible across the industry.
“Where I need to make decisions fast, I just need signals, I don’t need perfection,” Benoit Vatere, chief media and digital commerce officer at Liquid Death, told Ad Age.
Yet ad tech overconsolidation carries risk. Internally built tools could fail at scale—for example, dashboards managing thousands in spend now may buckle under millions later.
Implications for advertisers: Brands should treat vendor consolidation as an opportunity to reclaim data and cut redundant costs—it’s not a mandate to build everything internally.
A balanced approach pairs internal tools for well-understood, high-volume tasks (creative testing, reporting dashboards) with specialized vendors for anything mission-critical, security-sensitive, or prone to edge cases at scale.
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