Home Platforms Supply-Path Optimization Might Not Be As Scary As The Industry Thinks

Supply-Path Optimization Might Not Be As Scary As The Industry Thinks

SHARE:
Comic: If it Looks Like a Duck ...

Programmatic platforms are still unclear whether supply-path optimization is a way to get rid of one another or help each other reach sustainable profit levels in the space.

“I wouldn’t look at what [SSPs and DSPs] are doing as trying to go around one another,” said Katie Evans, chief operating officer at Magnite, speaking at AdExchanger’s Programmatic IO conference in New York last week. “We’re trying to create an ecosystem that is going to be successful in the future.”

More automation, please

One reason for DSPs to use SPO is to automate campaigns that are earmarked for direct buys, which doesn’t threaten the role of an SSP, said Will Doherty, VP of inventory development for publishers at The Trade Desk, also speaking at Prog IO.

OpenPath, The Trade Desk’s publisher-direct DSP product, is one example, he said. Similar logic should apply for SSPs trying to put publishers and agencies in closer contact without necessarily putting anyone out of business (like The Trade Desk, which traditionally sits between SSPs and advertisers).

This sense of competitive separation may explain why both DSPs and SSPs, including Magnite and PubMatic, are all busy spinning off their own SPO initiatives.

Supply and demand

Advertisers turn to SPO to automate buys across multiple publishers and reach as much of their intended audience as possible without “requiring buy-side decisioning,” Doherty said.

Magnite’s ClearLine product is the mirror version of OpenPath, in that it goes from the SSP straight to the agency buyer. And ClearLine, like OpenPath, also pitches itself as a better place for traditional direct sales budgets.

In that respect, Doherty added, the alleged competition between Magnite’s ClearLine and TTD’s OpenPath is overblown. They’re transferring their own direct deals through these channels, rather than poaching business.

Besides, as much as SSPs can help with fancy cross-platform audience targeting, advertisers still have a lot to gain from buying some supply directly through a publisher. Direct buys avoid the “ad tech tax,” for one thing, and give advertisers a clearer view into which publishers are driving the intended campaign results.

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

Publishers typically work with multiple SSPs, so each individual DSP-to-SSP pipeline only reveals a part of the whole picture. But buying direct-to-publisher gives advertisers a full view into the “true state of avails by impression” for a particular publisher, Doherty said, which helps buyers avoid buying repeat inventory. It also helps advertisers save money by not bidding against themselves.

SPO shouldn’t be a “winner takes all” game, Doherty said. It helps all ad tech platforms decide “which impressions to buy on behalf of [advertiser] clients.”

Must Read

CleanTap Says It Easily Fooled Programmatic Tech With Spoofed CTV Devices

CleanTap claims that 100% of the invalid traffic it spoofed was accepted into live auctions run by programmatic platforms and was successfully bid on by advertisers.

HUMAN Expands Its IVT Detection Tool Kit With A New Product For Advertisers, Not Platforms

HUMAN has recently started complementing its bid request analysis by analyzing the time between when a bot clicks an ad and when the landing page loads. Now it’s offering the solution to individual advertisers.

Index Exchange Launches A Data Marketplace For Sell-Side Curation

Through Index Exchange’s data vendor marketplace, curators gain access to third-party data sets without needing their own integrations.

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

Can Publishers Trust The Trade Desk’s New Wrapper?

TTD says OpenAds is not just a reaction to Prebid’s TID change, but a new model for fairer, more transparent ad auctions. So what does the DSP need to do to get publishers to adopt its new auction wrapper?

Scott Spencer’s New Startup Wants To Help Users Monetize Their Online Advertising Data

What happens when an ad tech developer partners with a cybersecurity expert to start a new company? You end up with a consumer product that is both a privacy software service and a programmatic advertising ID.

Former FTC commissioner Alvaro Bedoya speaks to AdExchanger Managing Editor Allison Schiff at Programmatic IO NY 2025.

Advertisers Probably Shouldn’t Target Teens At All, Cautions Former FTC Commissioner

Alvaro Bedoya shared his qualms with digital advertising’s more controversial targeting tactics and how kids use gen AI and social media.