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

Google Rolls Out Chatbot Agents For Marketers

Google on Wednesday announced the full availability of its new agentic AI tools, called Ads Advisor and Analytics Advisor.

Amazon Ads Is All In On Simplicity

“We just constantly hear how complex it is right now,” Kelly MacLean, Amazon Ads VP of engineering, science and product, tells AdExchanger. “So that’s really where we we’ve anchored a lot on hearing their feedback, [and] figuring out how we can drive even more simplicity.”

Betrayal, business, deal, greeting, competition concept. Lie deception and corporate dishonesty illustration. Businessmen leaders entrepreneurs making agreement holding concealing knives behind backs.

How PubMatic Countered A Big DSP’s Spending Dip In Q3 (And Our Theory On Who It Was)

In July, PubMatic saw a temporary drop in ad spend from a “large” unnamed DSP partner, which contributed to Q3 revenue of $68 million, a 5% YOY decline.

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

Paramount Skydance Merged Its Business – Now It’s Ready To Merge Its Tech Stack

Paramount Skydance, which officially turns 100 days old this week, released its first post-merger quarterly earnings report on Monday.

Hand Wipes Glasses illustration

EssilorLuxottica Leans Into AI To Avoid Ad Waste

AI is bringing accountability to ad tech’s murky middle, helping brands like EssilorLuxottica cut out bots, bad bids and wasted spend before a single impression runs.

The Arena Group's Stephanie Mazzamaro (left) chats with ad tech consultant Addy Atienza at AdMonsters' Sell Side Summit Austin.

For Publishers, AI Gives Monetizable Data Insight But Takes Away Traffic

Traffic-starved publishers are hopeful that their long-undervalued audience data will fuel advertising’s automated future – if only they can finally wrest control of the industry narrative away from ad tech middlemen.