Demand Path Optimisation (DPO) and Supply Path Optimisation (SPO) are two strategies in digital advertising, specifically in the programmatic ecosystem, aimed at improving the efficiency and transparency of the ad supply chain. Both focus on optimising different parts of the ad transaction process, but from different perspectives.
The recent focus across the industry has been on SPO, which primarily benefits advertisers and Demand-Side Platforms (DSPs) rather than publishers. This at-a-glance guide clarifies the differences, and highlights why DPO is crucial for publishers.
Perspective: Publishers
Objective: DPO is focused on optimising the paths through which publishers sell their ad inventory. It involves selecting the most efficient and profitable routes to connect with demand sources (like Supply-Side Platforms and advertisers). The goal is to maximise revenue and reduce the amount of partners that will either not bid on or not win a certain impression, while ensuring that the inventory is sold through trustworthy and transparent channels.
Key Activities:
Benefits:
Perspective: Advertisers and Demand-Side Platforms (DSPs)
Objective: SPO focuses on optimising the paths through which advertisers (or DSPs) access inventory from publishers. It involves evaluating and choosing the most efficient, transparent, and cost-effective routes to reach quality ad inventory. SPO aims to reduce waste, avoid unnecessary intermediaries, and ensure that ad spend is used effectively.
Key Activities:
Benefits:
In essence, both DPO and SPO aim to streamline the programmatic advertising process but from opposite sides of the transaction—advertisers optimising their purchase paths and publishers optimising their sales paths.
Implementing DPO can be complex due to the numerous variables, data points, and resources involved. However, Content Ignite’s Fusion platform is specifically designed to help publishers navigate these challenges and execute DPO efficiently.
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If you found this article helpful, join our CEO, James Hanslip, for a webinar titled "The Publisher's Guide to Demand Path Optimisation - Why It Matters," hosted in association with the AOP on September 10th. To sign up, please visit the AOP site here.
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