Home Inside the Stack Locality’s Tom Wolfe On Why Top-Down National TV Strategies Fail In Local Markets

Locality’s Tom Wolfe On Why Top-Down National TV Strategies Fail In Local Markets

SHARE:

Supply path optimization (SPO) has become industry shorthand for aggressive fee-cutting and stripping out intermediaries. But according to Tom Wolfe, Senior Vice President of Programmatic Strategy and Partnerships at Locality, that’s only half the equation.

Wolfe’s point on this episode of AdExchanger’s Inside the Stack is that a shorter path is better, and it’s even better when there’s premium inventory on the other side of it. While reducing the tech tax matters, a hyper-focus on cutting hops often ignores the signal degradation and data loss that happens when inventory bounces across multiple fragmented systems.

Wolfe argues buyers need to pair SPO with what he calls “data path optimization”: making sure the rich signals traveling alongside the inventory survive the trip, so the shorter path actually leads somewhere worth going.

Local TV adds an entirely different layer of complexity, and Wolfe points out the flaws in how buyers currently approach it. Taking a top-down national strategy and trying to force-fit it into distinct local markets simply doesn’t work.

As Wolfe notes, an auto-intender navigating the dense, brick-lined streets of Philadelphia behaves vastly differently than one driving the dirt roads of Dothan, Alabama. Hitting those distinct audiences requires bottom-up market intelligence that simple zip-code targeting can’t replicate.

In this episode, Wolfe also takes aim at the ubiquitous AI hype, arguing that the true competitive advantage isn’t the AI itself. Comparing today’s AI platforms to everyone suddenly gaining access to Microsoft Excel in the 90s, Wolfe points out that the real differentiator is the data feeding the models.

Tune in to hear more about solving local TV fragmentation, why AI is useless without good bidstream signals, and Wolfe’s three words to describe the converging TV ecosystem.

Must Read

Los Angeles, California - 26 February 2023: Reddit social media platform displayed on smart device

Reddit Is Going Login Only. Blame Google

Starting in Q4, Reddit will test logged-in-only mode to protect its user engagement, improve ad targeting and keep AI from scraping its content.

DoorDash Acquires Instacart As Consolidation Comes For Mobility Media

DoorDash on Thursday confirmed the rumors and announced its intention to acquire Instacart at a $17 billion valuation.

Meta’s $25 Billion Privacy Fine In New Mexico Is A Big Number. But Is It A Big Deal For Ad Tech?

Last week, a district court judge in New Mexico ordered Meta to pay $25 billion for misleading Facebook users about how it handled their data. Does it matter?

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Comic: Gamechanger (Google lost the DOJ's search antitrust case)

Google Earned More Than $100 Billion In Ad Revenue Last Quarter, But Is It Even An Ad Business?

Google earned $127.6 billion in Q3, up 25% year over year, practically all of which came from ads. Yet advertising hardly came up during its earnings call on Wednesday evening.

Flat Hand Holding a magnifying glass, find the person you want from many people. Find the right thing for you.

Meta Has A New Ad Ranking System Built On LLMs, Plus Upgrades To Andromeda And GEM

Meta now scores every eligible ad for every impression at more than a billion ads per second, one of three ad ranking upgrades Meta announced on Wednesday.

Marketbridge Acquires The B2B Advertising And Analytics Startup Channel99

The agency services group Marketbridge added to its portfolio on Tuesday by announcing its acquisition of Channel99, a B2B advertising and attribution tech company.