2023 is the year of Supply Path Optimization
Display.io is connected directly to many of the largest Demand Side Platforms in the industry.
The term we keep hearing from supply teams is ‘SPO’.
As ad revenue growth slows, advertisers are looking for more value from the inventory they buy. Trade Desk released Open Path, while the industry more generally is implementing SPO as a focus this year.
SPO – or Supply Path Optimization – is a programmatic advertising strategy that aims to increase transparency and efficiency in the ad supply chain. It involves streamlining the number of intermediaries between advertisers and publishers, reducing the number of auctions, and prioritizing high-quality inventory.
The impact of SPO on app publishers can be both positive and negative.
On the one hand, SPO can lead to increased transparency and efficiency, which can help publishers better understand their ad inventory and improve their revenue streams.
On the other hand, SPO can also reduce the number of demand partners and auctions, which can result in decreased competition and potentially lower revenue for publishers.
To maximize their ad revenue in this trend, app publishers should take the following steps:
- Focus on discoverability of inventory
Discoverability is the #1 thing affecting the ad revenue performance of mobile apps. App publishers should identify and prioritize improving the quality of their bid request data to make their inventory more discoverable by demand partners. This will help attract higher bids and increase revenue.
- Optimize for header bidding
Header bidding allows publishers to receive bids from multiple demand partners simultaneously, increasing competition and potentially leading to higher revenue.
- Be open to experimentation
Publishers should be open to experimenting with new strategies and technologies to improve their revenue streams. This includes testing different ad formats, demand partners, and programmatic strategies to identify what works best for their inventory and audience.