The current programmatic marketplace is much like the olive industry.
That’s according to TripleLift’s SVP, Global Marketplace Development Michael Lehman. During his presentation at Programmatic I/O New York 2019, he explored how one olive from a tree in South Africa can have many permutations: It can be converted into bottled olive oil, sold in a jar with other olives, or served as an appetizer at a high-end restaurant — each carrying its own monetary value based on the context in which it’s sold.
“This concept, that a single asset based on its chain of custody can turn into a variety of different assets at a variety of different values, is really the same concept that is at the core of the mechanics of today’s programmatic marketplace,” said Lehman.
Advertisers have an idea of how a supply path is “supposed” to work, but the reality is, the mechanics don’t neatly follow that model. Due to reselling, a single impression goes through an average of 15 auctions, which creates a condition where buyers bid against themselves. Resellers also come with additional fees, but often there’s not a clear understanding of the value they provide.
The key to simplifying this? Supply Path Optimization (SPO). Lehman reveals how SPO will be essential for creating meaningful changes to how supply is managed, considered, and decisioned — and why impulsively cutting won’t be the answer.
Watch the full video now.