Emily QuenzelNovember 16, 20221 min read

The Four Reasons Publishers Should Lean Into Demand Path Optimization

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Across the programmatic ecosystem, supply path optimization (SPO) remains top-of-mind for many advertisers. But a transparent and efficient media-supply chain benefits advertisers and publishers alike.

While advertisers focus on SPO, publishers should prioritize demand path optimization (DPO) and help media buyers access the most direct path to their inventory.

Here are four important reasons why DPO strategies are crucial:

1. Fewer transaction fees

Every added hop in the media-supply chain adds a fee. By evaluating current fee structures and consolidating demand partners to those with the most transparent purchase path, publishers can grow revenue while cutting costs.

2. Increased transparency means more valuable inventory

If your inventory is only accessible through messy supply chains, buyers are less likely to continue wanting to purchase. To unlock the most value for your inventory and provide advertisers with the transparency they need, it’s important to work with demand partners that can offer efficient supply paths. Doing so will help increase both the quantity of bids and the overall average spend per deal.

3. Ensure every impression opportunity is seen by a potential buyer

Every platform has their own SPO strategies and algorithms to ensure they are maximizing spend efficiently. Additionally, platforms have their own approvals policies and may not allow your inventory for a host of reasons (e.g, various quality assurance vendors, ads.txt authorization, etc). For publishers, that means irrespective of individual buyers' SPO paths, your inventory may be filtered out if it doesn't meet certain SPO benchmarks or policies set by DSPs. By collapsing the supply chain, you reduce the risk of your inventory being inaccessible due to buy-side, SPO filtering.

4. Build recognition as a premium supply partner

Advertisers heavily leaned into SPO are looking for partners who make it easy to buy premium inventory with fewer supply chain hops and the greatest ROAS. By investing in DPO, publishers (and their designated demand partners) become trusted suppliers of premium, efficient media and increase the likelihood of repeat buying.

The ad buying ecosystem is complex; but when publishers and advertisers alike lean into ad path optimization, both sides reap the benefits. For publishers, the first step in setting a DPO strategy is finding demand partners who deliver real value to their business.

Emily Quenzel

Emily Quenzel serves as Associate Director of Product Marketing at Connatix, bringing a diverse background in product marketing, graphic design, and marketing coordination. She holds a Bachelor's Degree in Strategic Design and Management from Parsons School of Design - The New School.