Many people are often looking for the quickest way to get from point A to point B. “Demand path optimization” (the demand-side version of supply path optimization) has the same goal — to connect premium video inventory with buyers, preserve user experience, protect rate card, and leverage new tools like data and live monetization in the programmatic ecosystem.
By nature, programmatic provides a transparent bid through impression path — what seat bought through which demand-side platform (DSP) through which campaign, what did they bid, and what was the clearing price of the auction per ad opportunity.
Any vendor/reseller/technology between the buyer and seller adds complexity and fees for the buyer and/or seller. If a potential partner can’t easily explain how their product provides more transparency, less latency, and unique buyers to the auction, it is putting a greater distance between the brand and media owner inventory.
Eliminating buyer confusion with demand path optimization
Eliminating buyer confusion reclaims the scarcity of true video inventory in the ecosystem. With the creation of programmatic guaranteed — high bid rates and render rates from the buyer in return for the highest priority at a fixed cpm for specific inventory — and automated guaranteed — similar to programmatic guaranteed but includes first-, second-, or third-party data — programmatic elevated from a remnant race to the bottom to pricing at the same rate card as traditional direct sales. And an SSP that will call all campaigns in parallel (direct sales, programmatic guaranteed, brand direct and always-on) will reduce latency, create a better user experience and increase revenue and fill rates.
Live monetization will be the largest opportunity and challenge in the ad sales and optimization space this year. The digital nature of OTT is built for addressability, which brings challenges of competitive separation, user experience, high risk of latency, who/how is the pod of ads compiled, mix of direct sales and programmatic, etc.
Having the path between the buyer and seller, efficient use of priority tiers, and clearly defined expectations of performance to buyers in place will make the transition from video-on-demand to live much more successful.
The goal of selling should be to make the transaction as easy as possible. The buyer should know exactly what they are bidding on and have set expectations of win/render rates. In return, the seller can present a transparent auction of all demand sources to increase yield.
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This article was written by John Gaibrois, senior account director of platform services at SpotX.