Welcome to the world of programmatic advertising, where complexity has become the norm. However, enter supply-path optimization (SPO) onto the scene and we’re seeing streamlined processes and efficient ad transactions. SPO works by eliminating unnecessary paths, optimizing auction dynamics, and fostering direct relationships with publishers.
For advertisers, this means the opportunity to prioritize trusted sources and target their ads even more accurately. By using SPO techniques, they can streamline ad-buying, maximize spend, and increase their return on investment. Plus, it arms them with a tool to combat fraud in digital advertising.
Interestingly, header bidding – a system that allows multiple supply-side platforms (SSPs) to bid simultaneously, complicated the system, but also amplified the need for SPO. With SPO, the once overwhelming bid paths are now easily navigable. It has become a valuable tool to sift through the labyrinth of bid options to pinpoint the best path for successful ad placement.
Modern versions of SPO center on identifying beneficial channels for buyers while reducing costs and enhancing transparency. This means less computational power is needed, further driving down costs, and fewer intermediaries are present, boosting transparency.
In the ideal programmatic supply path, only a handful of intermediaries are involved.
SPO’s impact on programmatic advertising efficiency
This approach, while also reducing costs, gives advertisers a clear picture of their investments and reliable metrics to measure their impact. It also strengthens the fight against ad fraud, ensuring ads are placed on trustworthy platforms.
But it’s not just advertisers who are affected. Publishers need to focus on the SSPs that add value by driving revenue growth. SSPs, in turn, need to stand out by offering unique value propositions and nurturing direct relationships. As a result, the focus consistently shifts from quantity to quality.
Take Start.io for example. They’re using supply-side SPO to manage costs and win more bids by reducing premium ad impressions and eliminating unnecessary SSPs. This allows them to create targeted advertising strategies that deliver maximum results by focusing on high-quality ad impressions.
The practice of SPO in programmatic advertising is, no doubt, a game-changer. By investing in high-quality inventory and minimizing low-quality impressions, marketers can optimize their ad spend and boost efficiency. Those who adapt and integrate SPO into their strategy may indeed see improved performance metrics and higher profit margins.
