What is Supply Path Optimization and How Curation Can Help

By Lotame 's Eli Heath , Senior Vice President, Global Addressability 

Efficiency is king in today's digital ad world. As programmatic advertising evolves, it's more important than ever to ensure every dollar of ad spend is working as hard as possible. That's where Supply Path Optimization (SPO) comes in. 

What is Supply Path Optimization? SPO is like Waze for your road trip — the most direct route to your destination. It helps advertisers streamline their ad buying process, cutting out unnecessary intermediaries and ensuring their budget is used effectively. 

In simpler terms, SPO involves identifying and utilizing the most direct and cost-effective routes to purchase ad inventory in programmatic advertising. By scrutinizing the intermediaries between advertisers and publishers, such as ad exchanges and networks, we can eliminate unnecessary parties and optimize the supply path.

Why is SPO Important?

SPO offers several key benefits:

• Increased Efficiency: By reducing the number of intermediaries, SPO decreases the "tech tax" at each stage, ensuring more of your budget goes directly to the publisher.
• Increased Transparency: SPO provides insights into ad placement and costs involved at every stage of the supply chain, helping you understand the path your ad takes from publisher to impression.
• Reduced Waste: Eliminating supply partners with high carbon emissions contributes to a more sustainable digital advertising ecosystem.

How to Get Started with SPO

Implementing SPO effectively involves a thorough analysis of your existing ad tech stack. Here's a step-by-step guide:

1. Assess Your Current Supply Path: Analyze your current supply paths, identify trends, and document key insights.
2. Consolidate Supply Partners: Curate your supply list, create allow and block lists, and engage with key partners.
3. Continuously Monitor and Optimize: Set up regular reports, maintain partner communication, and stay vigilant for changes.
4. Embrace New Solutions like Programmatic Curation: Leverage machine learning to automate SPO and gain greater control over your programmatic advertising.

The Benefits of Programmatic Curation

Programmatic curation takes SPO to the next level by offering:

• Consolidated Supply Paths: Reduces the number of intermediaries and maximizes efficiency.
• Leveraging Audience and Contextual Data: Enables precise targeting and higher match rates.
• Enhanced Campaign Performance: Optimizes inventory based on supply-side signals, boosting campaign relevance and engagement.

Continue reading to learn more about elevating your SPO strategy, including a list of frequently asked questions and how Lotame can help with programmatic curation. 

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