A Trader's Introduction to SPO
Helene Parker
Programmatic Media Expert | Corporate Training | Coaching | Podcast Host | Speaker | Course Creator | Teaching programmatic ninja(s) and AdTech how to activate efficiently
SPO, or Supply Path Optimization, is a concept that originated from how publishers are compensated in the programmatic landscape.
Alkimi 's Labtalks newsletter illustration I came across visually depicts the portion of the advertiser's dollar that actually reaches the publishers.
This illustration highlights one of the main reasons publishers opt for SPO – the opportunity to collaborate with a curated selection of SSPs and exchanges, aiming to eliminate unnecessary intermediaries and increase their earnings.
Adopting this concept on the buy-side, we've made it our own, seeking to work closely with a chosen few suppliers. This approach aims not only to reduce the number of bids in the auction (cheers to sustainability) but also to ensure we serve our brand's and advertiser's ads through a trusted, brand-safe, and measurable supply inventory.
Here are a couple of industry definitions that make sense to share:
"SPO is about simplifying the supply chain between advertisers and publishers by cutting out unneeded intermediaries and reducing redundancies." - Nativo Inc
"SPO is a means of identifying the most efficient supply paths from the buyer — the DSP or agency trading desk — to their most valuable, exclusive inventory, depending on the specific advertisers' or campaign's objectives." - GeoEdge
Let me explain it to a 4 years old:
Imagine you have a toy to give to a friend!
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Supply Path Optimization is like finding the quickest and best way to give the toy to your friend, bypassing unnecessary steps. Instead of going through many people, we choose the fastest route to ensure your friend gets the toy faster, using special tools to make the best decision. Similar to choosing the best way to share toys, we pick the optimal way to share ads, ensuring everyone is happy.
In the coming month, we'll dive into SPO-specific topics to help you implement it in your day-to-day and share with your team. This will include:
ICYMI:
The Programmatic Digest podcast had some phenomenal guests last month:
?? Get the LinkedIN live we did on Programmatic Optimization: A Trader's Guide to Building Your Own Supply Path into your inbox included guides and the deck here! To get the training roadmap sample, request it here: https://www.heleneparker.com/programmatictrainingsample/ ?