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A Basic Primer on the 4 Pillars of SPO

by Kevin O'Sullivan, December 08, 2020

Supply-path optimization is too often considered shorthand for a wrecking ball mentality that turns off SSPs and publishers in order to consolidate media buying. Rather than swing a wrecking ball, advertisers should use a scalpel to cut a precise path to supply so that they can execute strategically. Here’s how.

Understand the key strengths of SPO

SPO is the enforcement of a supply strategy in digital advertising. In order to achieve that strategic goal, advertisers must think about four interconnected pillars:

  • Supply space mapping and data collection
  • Strategic analysis and rule design
  • Business negotiations with supply-side sources and platforms
  • Technical implementation of rule sets

One size never fits all

As advertisers build capacity in each of the four pillars, they optimize supply paths. But it’s important to remember that efficiency isn’t a one-size-fits-all proposition. In fact, what’s efficient for one advertiser may be wasteful as far as another advertiser is concerned. Finally, as large advertisers build SPO capabilities, they’ll discover that understanding the different kinds of efficiency will create a unique and valuable knowledge base that can be leveraged across brands, verticals, and products.

SPO will be table stakes going forward

At the moment, ad tech is undergoing massive changes. The third-party cookie is going away. Walled gardens are on the rise. As ad tech reorganizes to address changes to identity, SPO will be seen as an essential jumping-off point. After all, a media buy inside a walled garden is, by definition, a form of SPO. Consequently, whether advertisers see it this way or not, they’re doing SPO as they navigate an ecosystem that is increasingly being defined by walled gardens. Or, put another way, the sooner advertisers prioritize SPO, the faster they’ll be able to future-proof their media buying.

Go deeper on SPO with Amobee

To read the complete article by Amobee’s Kevin O’Sullivan, please visit AdExchanger. Also, please check out Amobee’s VP of Analytics Service, Max Knight, as he provides an in-depth look at how connected TV advertisers can benefit from implementing basic long-term SPO strategies in his article As CTV Grows, Advertisers Need to Understand and Embrace SPO.

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