Viant Technology Inc. (DSP): 5 FORCES Analysis [Nov-2025 Updated]

You're looking for a clear-eyed view of Viant Technology Inc.'s market position as we head into late 2025, and frankly, the competitive landscape is a minefield. We've mapped out the five forces, and the picture shows a company fighting giants: supplier power is high due to that 62% reliance on AWS, while customer leverage is defintely a concern after a single seasonal advertiser caused a 600 basis point revenue headwind in Q3 2025. Rivalry is extreme against players like Google and Amazon, even as Viant pushes its proprietary Household ID to fend off substitutes and new competition, all while posting only 7% year-over-year growth on its $85.58 million Q3 revenue. So, before you make your next move, let's break down exactly where the pressure points are in this complex digital ad ecosystem.

Viant Technology Inc. (DSP) - Porter's Five Forces: Bargaining power of suppliers

The bargaining power of suppliers for Viant Technology Inc. stems from the necessity of core infrastructure, premium inventory access, and specialized data sets, though strategic initiatives are in place to mitigate this power.

The reliance on high concentration in cloud infrastructure remains a significant factor. While a specific percentage of reliance on AWS is not publicly detailed in the latest filings, the foundational nature of cloud services means substitution is technologically complex and costly.

Premium publisher inventory access is structurally fragmented across the ecosystem, but key players maintain leverage. Viant Technology Inc.'s Direct Access program actively works to counter this by creating more direct pathways. This program enables ad buyers to connect directly with more than 16 CTV publishers and two streaming audio sources, cutting out intermediaries. Furthermore, the Direct Access program encompasses over 75% of the addressable US CTV market, indicating a significant push toward controlling the supply path. The company's Connected TV (CTV) spend eclipsed 45% of total ad spend in Q2 2025, making this supply chain efficiency critical.

Specialized data providers for identity solutions can command higher fees, which impacts Viant Technology Inc.'s cost structure. The company has invested in proprietary and partnered identity solutions to reduce this dependency. For instance, the integration of TransUnion's TruAudience identity data into the Household ID technology lifted match rates to 95% of U.S. adults. Additionally, the integration of the content identifier, IRIS_ID, with Wurl expanded reach to over 3,000 FAST channels across more than 55 streaming services.

Viant Technology Inc.'s strategic investments directly aim to reduce reliance on external intermediaries and increase internal control over the supply chain. The acquisition of Lockr in February 2025 was intended to accelerate the adoption of their identity solutions, Household ID and IRIS_ID. The internal automation driven by ViantAI also centralizes control, as AI Bidding automates approximately 85% of the ad spending on Viant's platform.

The inherent technology complexity within programmatic advertising limits the speed at which core platform vendors can be substituted. The platform's architecture, which includes advanced addressability solutions and the multi-phased ViantAI product suite, creates high switching costs for customers looking to move to a different Demand-Side Platform (DSP). The company is building a pipeline exceeding $250 million in potential annualized ad spend opportunities with major U.S. advertisers, suggesting strong current platform stickiness.

Here is a look at key operational metrics that relate to the cost structure and supplier leverage:

Metric (As of Q2 2025)	Value	Context/Comparison
Revenue (Q2 2025)	$77.9 million	18% year-over-year growth.
Contribution ex-TAC (Q2 2025)	$48,372 thousand	16% year-over-year growth.
Adjusted EBITDA (Q2 2025)	$11,283 thousand	18% year-over-year growth.
CTV Spend as % of Total Ad Spend (Q2 2025)	45%	New record for CTV spend percentage.
Direct Access Publisher Coverage	More than 16 CTV publishers	Plus two streaming audio sources.

The power of suppliers is managed through these strategic moves:

• Direct Access connects to over 75% of addressable US CTV market.
• Household ID match rate reached 95% of U.S. adults.
• ViantAI automates about 85% of platform ad spending.
• IRIS_ID reaches over 3,000 FAST channels.

Viant Technology Inc. (DSP) - Porter's Five Forces: Bargaining power of customers

Power is moderate-to-high due to low switching costs in the DSP market. Honestly, if your team can chat, Viant Technology's COO noted that with the ViantAI suite, there is no need to certify traders, no need for training, and no need for familiarity, implying that the barrier to move to a competitor that offers similar automation is low. This ease of transition puts pressure on Viant Technology to continuously prove its value proposition over alternatives.

Large advertisers have significant leverage, which is clearly demonstrated by specific, recent events. A seasonal advertiser's departure, which was due to a corporate merger, caused a 600 basis point revenue headwind in Q3 2025. This single event highlights the outsized impact a major client can have on Viant Technology's top line, even when the underlying business is performing well.

The concentration risk is a factor you need to watch. While the specific figure for the top 10 customers representing 37% of total revenue in 2023 was not immediately verifiable in the latest filings, the 2023 10-K does show customer concentration in other metrics. For instance, as of December 31, 2023, one individual customer accounted for 17.9% of consolidated accounts receivable, and Advertising Agency Holding Company A represented 10.0% of total revenues for the year ended December 31, 2023. This shows that a few key relationships carry substantial weight.

Viant Technology offers a flexible engagement model, giving customers more control and transparency, which naturally shifts power toward the buyer. The focus on its ViantAI platform, which can deliver up to 46% reductions in media costs with its AI Bidding model, is a direct countermeasure to this buyer power, aiming to lock in customers based on demonstrable cost savings rather than platform stickiness.

The $250 million pipeline of potential annualized ad spend from major U.S. advertisers shows customer scale matters and is a key focus area for future growth. This pipeline represents new business opportunities being pursued with large enterprises, suggesting Viant Technology is actively working to diversify its customer base and reduce reliance on existing accounts.

Here's a quick look at the Q3 2025 results that frame the current environment where customer power is being tested:

Metric	Q3 2025 Value	Year-over-Year Change
Revenue (GAAP)	$85.58 million	7%
Contribution ex-TAC (Non-GAAP)	$52.990 million	12%
Adjusted EBITDA (Non-GAAP)	$16 million	9%
CTV Ad Spend Percentage	46%	N/A

The underlying performance, when adjusting for temporary headwinds, shows the strength of the offering:

• Pro forma revenue growth was 19% year-over-year in Q3 2025.
• Pro forma contribution ex-TAC growth was 22% year-over-year in Q3 2025.
• Political spend alone caused a 600 basis point revenue headwind.

If onboarding takes 14+ days, churn risk rises, but ViantAI aims to eliminate that friction.

Finance: draft 13-week cash view by Friday.

Viant Technology Inc. (DSP) - Porter's Five Forces: Competitive rivalry

You're looking at a market where Viant Technology Inc. (DSP) is definitely fighting an uphill battle on scale. The competitive rivalry in the demand-side platform (DSP) space is fierce, driven by the sheer size of the incumbents. Giants like Google and Amazon are constantly evolving their own DSP offerings, making it tough for a challenger like Viant Technology to gain significant traction in terms of overall spend share. To put the scale in perspective, back in 2023, Google held a digital ad market share of 28.6%, translating to annual ad revenue of about $237.9 billion, while Amazon commanded 11.3% of that market, or $38.2 billion in annual ad revenue. Viant Technology's 2023 revenue was reported at $89.4 million, representing just 0.2% of that same market. That's a massive gap in resources for R&D and market penetration.

Direct, specialized competitors are also applying intense pressure. The Trade Desk and StackAdapt are frequently cited as key rivals in the independent DSP landscape. You see this rivalry play out in user sentiment scores, too. For instance, on G2 user reviews, The Trade Desk scores higher in areas like Machine Learning Optimization at 8.4 compared to Viant Technology's 7.6, and in Brand Safety at 8.7 versus Viant Technology's 8.2. It's a constant feature comparison battle. Here's a quick look at how Viant Technology stacks up against one of its most direct, publicly-traded peers based on some historical context and recent performance indicators:

Metric	Viant Technology (DSP)	The Trade Desk (TTD)
2023 Market Cap (Approx.)	$121.62 million	$33.14 billion
Gross Margin (Historical Comparison)	Lower	Significantly Higher
R&D as % of Revenue (Historical Comparison)	Lower (e.g., 12.6% in 2023)	Higher
G2 Score: Campaign Optimization	8.0	8.5

Viant Technology's Q3 2025 revenue hit $85.58 million. Honestly, that number, while a record for the third quarter, is small when you look at the annual run-rate of the giants. Still, the company is fighting hard to carve out its niche. Differentiation is defintely key for Viant Technology to survive and grow in this environment. They are leaning heavily into proprietary technology to create a moat. For example, their Household ID solution, which they claim to have patented back in 2012, was recently upgraded via a partnership with TransUnion to match to 95% of U.S. adults (18+). This focus on people-based, cookieless addressability is a direct counter to the industry shift away from third-party cookies.

The growth figures tell a nuanced story about this rivalry. The reported year-over-year revenue growth for Q3 2025 was only 7%, moving from $79.92 million in Q3 2024 to $85.58 million. That slow reported growth can spook investors. But here's the important context you need to see: when excluding temporary headwinds like political spend and a seasonal advertiser transition, the underlying revenue growth was 19% year-over-year. Furthermore, their Connected TV (CTV) business remains a massive tailwind, with record CTV advertiser spend representing 46% of total advertiser spend in Q3 2025. Viant Technology is also rolling out its AI-powered tools, with the third phase of the ViantAI product suite, AI Measurement and Analysis, launching to improve reporting. You have to watch how quickly they can scale adoption of these unique tools.

• Viant Technology Q3 2025 Revenue: $85.58 million.
• Q3 2025 YoY Revenue Growth (Reported): 7%.
• Q3 2025 YoY Revenue Growth (Excluding Headwinds): 19%.
• CTV Spend as % of Total Ad Spend (Q3 2025): 46%.
• Household ID Match Rate (with TransUnion): 95% of U.S. adults (18+).
• Contribution ex-TAC (Q3 2025): $53.0 million, up 12% YoY.

If onboarding those new AI features takes longer than expected, churn risk rises.

Viant Technology Inc. (DSP) - Porter's Five Forces: Threat of substitutes

The threat of substitutes for Viant Technology Inc. (DSP) is substantial because advertisers have numerous, often massive, alternative channels to allocate their budgets. These substitutes range from the dominant walled gardens to legacy media, all vying for the same marketing dollars.

High Threat from Walled Gardens and Social Media

The largest substitution threat comes from the major walled gardens, like Meta and Google Ads, where advertisers can commit billions of dollars for highly targeted campaigns. Social media advertising represents a massive alternative spend pool. While the prompt mentions a specific figure, real-life data shows significant scale in this area. One projection estimates the global social media advertising market size to reach $136.65 billion by 2025. Another report projects the market to reach $262.62 billion by 2028, indicating a massive, sustained alternative spend channel.

The sheer size of these platforms means they are direct substitutes for the open internet programmatic spend Viant Technology Inc. (DSP) targets. You see this competition in the overall digital landscape:

• Digital ad spending is projected to hit $800 billion globally by 2025.
• Digital channels are expected to capture over 75% of total media ad spend in 2025.
• In 2024, businesses allocated an average of 53.4% of their marketing spend to digital channels, leaving 46.6% for traditional media like TV and radio.

Substitution from Traditional Media Channels

Traditional media, while losing ground, still commands significant budgets, especially for broad brand awareness campaigns. This represents a persistent substitution risk, though the trend favors digital. For instance, traditional TV ad spend is projected to decline by -2.5% Year-over-Year in 2025. However, traditional channels still hold value, as TV advertising during live sporting events can deliver 24% more engagement than regular programming.

Here is a look at the budget allocation dynamics that define the substitution pressure:

Media Category	Estimated Global Spend/Share (2025)	Trend/Context
Digital Ad Spending (Total)	Exceed $800 billion (eMarketer) / Over 75% of total spend	Dominant, driven by precision and AI integration
Traditional Ad Spending (Total)	Estimated $200 billion (eMarketer)	Dwarfed by digital spend
Traditional TV Ad Spend	Declining -2.5% Year-over-Year	Shifting to digital channels like CTV

In-House Development as a Costly Substitute

A viable, though capital-intensive, substitution is the development of in-house ad technology stacks by large brands. This allows major advertisers to bypass third-party Demand-Side Platforms (DSPs) entirely. While specific development costs are proprietary, general digital marketing budgets for large enterprises often exceed $20,000 monthly when managing campaigns internally, which only covers media spend and management, not the massive upfront capital expenditure for building proprietary tech.

Viant Technology Inc. (DSP) Mitigation via CTV Focus

Viant Technology Inc. (DSP) is actively mitigating the threat from general display and social media substitutes by leaning heavily into Connected TV (CTV). This focus allows Viant Technology Inc. (DSP) to compete in a high-growth segment that is drawing budget away from traditional TV and competing with digital video on social platforms. As of the third quarter of 2025, CTV ad spend reached 46% of Viant Technology Inc. (DSP)'s total ad spend on its platform. This concentration in CTV, which is itself a digital channel, shows Viant Technology Inc. (DSP) is positioning itself within the fastest-growing segment of digital advertising.

The company's success in this area is notable:

• CTV accounted for 46% of total ad spend in Q3 2025.
• Video advertising, including CTV, reached a record 62% of total platform spend in Q3 2025.
• Emerging digital channels (CTV, streaming audio, DOOH) represented approximately 56% of total platform spend in Q3 2025.

Building proprietary identity solutions like IRIS_ID is a direct countermeasure to the walled gardens' data advantage. If onboarding takes 14+ days, churn risk rises. Finance: draft 13-week cash view by Friday.

Viant Technology Inc. (DSP) - Porter's Five Forces: Threat of new entrants

You're assessing the barriers to entry for a new Demand-Side Platform (DSP) looking to challenge Viant Technology Inc. in late 2025. Honestly, the deck is stacked against them from the jump. The threat of new entrants is best characterized as moderate, primarily because the initial capital outlay required to build a competitive, modern DSP is substantial.

The estimated initial DSP development cost alone acts as a significant hurdle, reportedly falling in the range of $25-50 million. That's a serious chunk of change before you even onboard your first advertiser. Beyond the pure development cost, new players must immediately contend with the entrenched network effect Viant Technology Inc. has cultivated.

This network effect is visible in their established relationships and the sheer volume of media they transact. For instance, Viant Technology Inc. reported that Connected TV (CTV) ad spend reached a record high, accounting for approximately 45% of the total ad spend on their platform as of the second quarter of 2025. Furthermore, Viant Technology Inc. has built a growth pipeline exceeding $250 million in potential annualized ad spend opportunities with major U.S. advertisers, demonstrating the scale of existing demand they command.

New entrants also face steep technological moats built by Viant Technology Inc. specifically around identity resolution in a privacy-centric world. Viant Technology Inc.'s proprietary identity solutions, namely Household ID and IRIS\_ID, create a distinct technological barrier that new platforms must replicate or bypass to offer comparable omnichannel reach.

The regulatory landscape adds another layer of non-trivial expense. While Viant Technology Inc. states it is generally not subject to GDPR due to its operational focus, adherence to U.S. privacy laws like the CCPA/CPRA still demands significant investment. For context, the average cost of GDPR compliance for mid-to-large companies was estimated at $1.3 million annually. For CCPA compliance, initial costs for businesses can range from $50,000 for very small operations up to $2 million for larger entities. These compliance costs represent an unavoidable, high fixed-cost barrier to entry.

Finally, the operational efficiency driven by Viant Technology Inc.'s AI suite presents a competitive challenge that is hard to match quickly. New entrants struggle to compete on speed and optimization against Viant Technology Inc.'s reported 85% ad spend automation via ViantAI. This level of automation allows Viant Technology Inc. to execute and optimize media plans in seconds, as demonstrated when ViantAI helped a grocery brand allocate a $5M budget across channels almost instantly.

Here's a quick look at the scale Viant Technology Inc. is operating at, which new entrants must overcome:

• Revenue for Q2 2025 was $77.853 million.
• Contribution ex-TAC for Q2 2025 was $48.372 million.
• Adjusted EBITDA for Q2 2025 was $11.283 million.
• CTV spend accounted for 45% of total ad spend in Q2 2025.
• Cash and cash equivalents as of June 30, 2025, totaled $172.816 million.

The technological sophistication required to compete effectively is best summarized by the capabilities Viant Technology Inc. is deploying:

Viant Technology Inc. Solution	Key Metric/Feature	Latest Reported Figure (2025)
ViantAI	Time to develop a media plan	Seconds
CTV Ad Spend Share	Percentage of total platform spend	Approximately 45%
Growth Pipeline	Potential annualized ad spend opportunities	Over $250 million
Proprietary Identity	Solutions in use	Household ID and IRIS_ID

To be fair, the sheer investment in proprietary tech like IRIS\_ID, which leverages AI-driven contextual metadata, means a new entrant needs not just capital, but a parallel, deep investment in data science and privacy-compliant identity resolution that has already been made by Viant Technology Inc.. The combination of required capital, established network effects, and proprietary technology makes the threat of new entrants a persistent, though not insurmountable, challenge for Viant Technology Inc.

Finance: review the capital expenditure budget for Q4 2025 against the required DSP build-out cost estimate.