Supply-path optimisation (SPO) allows media buyers to focus their bids on efficient, scalable, and transparent supply paths.
The need for SPO is critical in programmatic advertising, which is complex and untransparent. SPO can assist buyers in discovering the most efficient links to deal with sellers and avoid the use of inefficient or costly supply paths.
Unlike the traditional waterfall model, header bidding allows publishers to receive bids from various supply-side platforms (SSPs) on each placement simultaneously. SPO eliminates the need for publishers to rank and bid on each SSP individually and gives them equal access to inventory. Buyers optimising supply paths can bypass DSPs and interact directly with SSPs to get better deals.
Advertisers can also perform SPO to eliminate "bad actors" from the SSP side that require a higher-than-average take rate or resell impressions. Moreover, the industry is leaning toward fewer partners as more buyers evaluate SSPs to yield better benefits. Magnite CRO Sean Buckley notes, "If you're only working with one or two partners, it becomes much more achievable to build deep, comprehensive relationships."
[4 minute read]