SANTA MONICA, Calif. — It may not be the sexiest of industry technologies – but it sure can get results moving.
Supply Path Optimization (SPO) is the process of reducing the number of intermediaries in ad-tech until each adds value.
In this video interview with Beet.TV, Kyle Dozeman, Chief Revenue Officer, PubMatic, explains why it is essential.
SPO has risen in recent years as more companies in the advertising ecosystem have realized the extent of fees that can be eaten up by over-reliance on poorly-performing intermediaries.
“It’s about economic control, it’s about quality control, it’s about efficiency, effectiveness,” says Dozeman, a veteran PubMatic exec.
“That is something that exists in all other industries and is well understood.
“(Marketers) should align their supply chain with what is differentiating and unique to them and that is the right path.”
- a supply-side platform (SSP) for advertising.
- Connect data solution.
- Identity Hub for identity management.
- OpenWrap for unified bidding.
The company believes ad buyers are looking for more transparency and “want to understand what they’re buying, down to the content signal”.
Dozeman says connected TV applications offer the same kinds of transparency tools previously on offer in other ad channels, like AppAds.txt and sellers.json files.
That’s good news because the buyers’ market is clamouring for transparency.
“Some of the largest marketers in the space have made it clear that programmatic is their preferred technology for buying and transacting CTV, and they’ve made it clear that the vast majority of their budgets, if not all, are going to be allocated towards publishers and supply paths that offer complete transparency,” Dozeman says.
“What we’ve observed over the last two quarters is that the amount of inventory that does meet those requirements has hit a point where those marketers can execute large-scaled budgets and hit their KPIs. I don’t think that was possible a year ago.
“So I think momentum is going to pick up.”
You are watching coverage of Beet Retreat Santa Monica 2022, presented by Ampersand, MiQ, Nielsen, PubMatic, T-Mobile Advertising Solutions and The Trade Desk. For more videos from the Beet Retreat, please visit this page.