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.

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

Amazon Faces An Easy Boycott But An Existential Question

The Amazon advertising boycott last week wasn’t really about Amazon’s ad platform as much as it was a dispute over evolving seller economics. And this raises a fundamental question for many ecommerce marketers and entrepreneurs, one that’s been lurking in the back of their minds: Can you even build a brand on Amazon anymore?

Unity And Index Exchange Unite Behind Gaming Data In Non-Gaming Channels

For the first time, Unity’s gaming audiences will be available for ad targeting outside the Unity platform, with Index Exchange using Unity’s data to curate web and CTV inventory.

Brand-Trained Agents Can Give Marketers A Fuller View Of Their Customers

Agentic commerce company Envive builds on-site agents for brands like footwear company Clove, painting a clearer picture of what their customers are looking for.

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

Don’t Worry About Netflix – It’s Doing Fine Without Warner Bros. Discovery

Paramount might have outlasted and outbid Netflix in the competition to acquire Warner Bros. Discovery, but Netflix is not overly fussed about the loss.

Paramount’s Upfront Pitch Is About Three Things

Paramount is merging the ad tech stacks behind Paramount+ and Pluto TV, releasing a new performance product, offering more control over ad placements and introducing dynamic ad insertion in live sports.

Hard Truths For Retail Media At The IAB Connected Commerce Summit

The IAB’s Connected Commerce event in New York City this week felt to me like the retail media industry’s first sit-down explanation to a child who is now a “big kid” and must act accordingly.