No question: Supply Path Optimization (SPO) is important. Nowadays more than ever. And in the recent years, we’ve seen more and more demand-side players engaging in optimizing their supply chain. But before we dig deeper and answer the question how buyers manage best to do so we’ll give you a quick recap on what SPO is and what concrete advantages it offers to buyers.
In a nutshell: What is SPO – and why is it so important?
Essentially, SPO aims to simplify the supply chain between advertisers and publishers by removing unnecessary middlemen and cutting down on duplicate processes. As we already talked about in our blogpost “Why one hop only is king” it could also be described as “a strategic approach to media buying that prioritizes certain supply paths over others by addressing some or all of the complexities associated with the bidding process.” All buyers like advertisers or agencies therefore want is to streamline their partnerships to access the inventory they need. Because that guarantees them:
Efficiency
Supply path optimization enhances efficiency by streamlining the process of connecting advertisers with publishers, reducing unnecessary intermediaries, and eliminating redundant steps. This streamlined approach saves time and resources for buyers, allowing them to focus on more strategic aspects of their advertising campaigns.
Sustainability
By optimizing the supply path, buyers can contribute to sustainability efforts indirectly. Reducing unnecessary intermediaries and streamlining processes can lead to fewer resources being expended in the advertising ecosystem, which can have a positive environmental impact. While not explicitly "green," these efficiency improvements align with broader sustainability goals by minimizing waste and energy consumption.
Transparency
SPO increases transparency by providing buyers with clearer visibility into the supply chain. By knowing exactly where their ads are being placed and how intermediaries are involved, buyers can make more informed decisions about their advertising strategies. This transparency fosters trust between advertisers and publishers, leading to stronger partnerships and better outcomes for both parties.
Differentiation
Optimizing the supply path allows buyers to strategically cooperate with preferred partners, leading to differentiation in the market. By aligning with publishers that offer high-quality inventory and forging direct relationships, buyers can stand out from competitors and access unique advertising opportunities. This strategic cooperation enables buyers to tailor their advertising strategies more effectively, ultimately driving better results and market differentiation.
But: How do buyers find the perfect partner for SPO and maximize the effectiveness of their advertising campaigns?
As you can see SPO is always very important. If it is implemented well by buyers, they can reduce costs, save emissions and achieve a certain level of uniqueness. However, the landscape of SPO can be daunting. That's why, in this short guide, we provide buyers with a little roadmap for navigating SPO terrain.
Simplify Your SSPs!
Begin by defining the criteria that matter most to your business when selecting supply partners. This might include factors like access to exclusive publishers, transparency in fees, or buyer services. Identify three to four SSPs that meet these criteria and gradually phase out any low-value or low-quality partners. By making changes incrementally, you can closely monitor how each adjustment impacts your campaigns and revenue. Ensure your preferred SSPs are used consistently across your team's campaigns by setting them as default options in your DSP.
Optimize Budget Allocation!
Direct your advertising budget towards high-performing supply sources and strategic partners. Monitor key performance indicators (KPIs) such as CPM, win rate, viewability, and conversion rate to gauge the effectiveness of your spending. Prioritize partners that offer flexibility, access to premium inventory, and valuable insights that enable you to optimize your campaign strategies both in the short and long term.
Refine Your Supply Strategy!
Stand out as a buyer by securing access to exclusive or premium supply sources. Curate your open market supply with carefully selected auction packages to ensure brand safety and scalability. Develop a comprehensive deal library containing specialized deals tailored to your business needs, such as Programmatic Guaranteed or Private Marketplace deals. Prioritize partnerships that offer direct access to premium publishers while avoiding concerns such as multi-hop reselling and made-for-advertising (MFA) inventory.
… or in other words: Work with us! Work with ConnectAd! Due to our DNA (we live SPO!) and our excellent service, we are the ideal partner for agencies and clients dedicated to this topic. Any questions? Just reach out! We’re here to help!
