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What Is Supply Path Optimization?

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Optimal implements advanced SPO strategies to choose the most effective and efficient supply paths to help agencies, advertisers, and campaigns reach their target audience, increase brand awareness, and eliminate media waste.

Supply Path Optimization (SPO) is a strategy that aims to enhance the efficiency and transparency of programmatic advertising transactions. Programmatic advertising involves the automated buying and selling of digital advertising space in real-time auctions, usually facilitated by demand-side platforms (DSPs) and supply-side platforms (SSPs). While DSPs demand ad space, an SSP supplies it. 

At Optimal, we act as a meta-DSP, and we make navigating programmatic landscapes from the demand side to the supply side easy by clicking a few buttons. Our SPO strategies help us and other DSPs streamline interactions with supply-side platforms.

What is the purpose of Supply Path Optimization?

Advertisers and their agencies want to ensure they optimize ad spend and effectively reach the right audiences. However, the programmatic landscape can be fragmented, with multiple intermediaries, such as ad exchanges, ad networks, and various technology platforms. This fragmentation can lead to inefficiencies, such as duplicate auctions, discrepancies in reporting, and unnecessary fees.

SPO addresses these issues by identifying the most efficient and transparent pathways through which ad inventory is bought and sold. It analyzes the various routes through which an advertiser’s bid can reach publishers’ inventory and chooses the best combination of effectiveness and cost-efficiency.

What are the benefits of Supply Path Optimization?

  • Reduce Friction: SPO simplifies the supply chain by eliminating unnecessary intermediaries and improving transparency. The added filtration layer allows us to engage with bid requests more effectively, ultimately leading to a refined and streamlined process.
  • Lower Costs: Identifying the most direct and cost-effective paths to reach desired audiences reduces fees and potential bid duplication. Reducing the number of partners, and focusing on the ones with proven results, can eliminate media budget waste, making advertising dollars work harder.
  • Improve Transparency: SPO strategies improve visibility into the supply chain, ensuring that advertisers have a clearer understanding of where their ads are shown and how the process works.
  • Enhance Performance: At Optimal, we take several precautionary steps to ensure the brand safety of our clients is never jeopardized, and that extends to ad fraud. One of the measures we take to ensure your programmatic ads are placed in brand-safe inventory and guarded against fraud includes an SPO strategy dedicated to building partnerships with trusted SSPs and publishers, cutting out middlemen and “black box” ad sellers.
  • Leverage Data: Enables DSPs to leverage data and analytics to make informed decisions about the best paths for buying inventory. Optimal pioneers the best integration of data and technology to reach every voter, on every device, everywhere.

Optimal implements advanced SPO strategies to choose the most effective and efficient supply paths to help agencies, advertisers, and campaigns reach their target audience, increase brand awareness, and eliminate media waste.

Learn more about other programmatic ad tech terms, and contact us to learn more about how Optimal can help you run better digital ads!

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