Screen time is growing exponentially. Coupled with increased privacy restrictions and economic pressures, several media businesses are looking to more ad-supported models. DSPs will have to adjust to new technologies, business models, and strategies to stay ahead.
One such strategy is supply-path optimization. In basic terms, supply-path optimization gives media buyers the power to bid on and win inventory at the most reasonable price. In turn, publishers can maximize their long-term revenue goals. Essentially, it’s a way for demand-side platforms (DSPs) to streamline how they interact with supply-side platforms (SSPs). So now you get the optimization part.
For DSPs, SPO offers more pricing and dynamic auction transparency, plus it benefits the overall advertising environment.
Some of our TripleLifters dive deeper into the exact supply-path optimization topics to look out for in 2023, plus the new business models that you can’t afford to ignore.
A Shift in Supply Path Optimization
“Supply Path Optimization (SPO) mean different things to different audiences; if you’re a DSP, it may mean improving win rates and overall bid efficiency, as well as de-duplicating auctions in the supply path. For brands or agencies, it may mean the most efficient buys or identifying a set of preferred partnerships. But I predict 2023 will be a pivotal moment for defining SPO to be inclusive of maximizing addressability.”
Solve the Third-Party Cookie Deprecation Challenge
As Miranda continues, “Think of it this way: SPO helps buyers make ROI-impacting decisions about who they partner with regarding supply. But when you look at browser addressability, the third-party cookie apocalypse has already happened on browsers like Safari and Firefox. Instead of just thinking about minimizing the number of supply sources, buyers may consider being expansive first and including strategies like first-party data, contextual, and other privacy-forward solutions that ensure unidentified users are being reached across cookie-constrained environments. I expect buyers will start looking for innovative partners to solve cookie deprecation as part of their SPO checklist to reach maximum addressability in cookie-constrained environments and winnowing down from there.”
SPO Will Enhance Transparency
“Ongoing SPO efforts have started exposing the questionable players in our space. This will only continue pushing publishers to reevaluate their ad stack and cut partners who aren’t driving incremental value,” says Fay Wu, Senior Director of Publisher Client Services at TripleLift.
Each buyer’s optimal path is unique. That’s why having confidence in the best-chosen supply chain is critical. Companies can gain better results by accurately measuring success based on performance, innovation, and long-term partnerships. We believe there’ll be more spend in programmatic, where buyers can achieve scale and performance with greater transparency than in other channels.
Will Subscriptions Still Be a Thing in 2023?
With the potential for continued macroeconomic headwinds in 2023, subscription services across multiple industries may look for new revenue streams such as advertising. Cue opportunity for DSPs. So many subscription services have popped up in the last few years. These might be CTV, news, dog toys, and food delivery — it’s enough to make you forget what you’ve subscribed to.
“Going into 2023, with the economy where it is and inflation still a driving factor, several people will be re-evaluating their subscriptions and focusing on only the ones with the most value (or only having one active in a month at a time). This will lead to businesses currently relying on subscription revenue to re-introduce other revenue models and the resurgence of ad-supported content.”
Programmatic Retail Media Networks
“Retail media networks increasingly employ a programmatic approach, where retail media inventory is connected to off-site properties and third-party media for omnichannel reach in retail campaigns. For instance, Walmart recently partnered with the Trade Desk to launch its own DSP. Instead of creating a proprietary network, other retailers partner with existing retail media solutions, such as Criteo, that group the inventory of different retailers to provide an extensive reach for brands and advertisers.”
Keen to know what else will happen in 2023? Then catch our Marketing Trends 2023 for CTV or Marketing Trends 2023 in a data-driven, cookieless world.