engagesimply

The Ad Tech sector loves a three-letter acronym (TLA) and their application is rampant, used to describe categories like DSP, SSP, DMP, CDP, CMP, etc. But perhaps one of the most consequential TLAs that may be less well known is SPO, which stands for Supply Path Optimization. We’ve been suggesting SPO as a fix that would improve the ecosystem for years and the trend is now picking up steam. Essentially, we have a complex, murky and inefficient supply chain in programmatic digital advertising. SPO is a term that encompasses a variety of efforts to simplify the supply chain and make it more efficient. Want to: - Bundle select media with audience data for better results? CURATION. - Eliminate hops between demand and supply for better data husbandry? HORIZONTALITY. - Reduce bid duplication to cut out waste and lower the carbon footprint? SUSTAINABILITY. - Shine a light on supply sources to minimize bad actors? SHENANIGANS. - Reduce the number of intermediaries who each have a take rate? AD TECH TAX. - Resolve over-fragmentation that creates dark corners? PERPETUAL IMMATURITY. SPO, if done right will produce an ecosystem that features: - Fewer players, doing - Higher volumes, at - Lower take rates, with - Better quality This would result in advertisers getting better ROI on their ad spend, publishers receiving higher yield on their inventory, intermediaries with better margins, less data leakage and a cleaner and brighter supply chain that would benefit quality publishers, minimize MFA sites and reduce fraud. This would be a very good thing!