The State of Supply Path Optimization: Progress and Impact in the US

US media buyers will spend almost $60 billion on programmatic display advertising in 2019, according to eMarketer. With the dizzying choices of inventory paths and multiple supply partners, programmatic buying became increasingly complex, and less transparent. Amidst  demands to improve supply chain efficiency and improve the value technology partnerships, Supply Path Optimization (SPO) has come to the forefront of the industry dialogue. While it is widely embraced, buyers’ tactics and motivations are varied. How are buyers approaching SPO? What are the biggest benefits and concerns around optimization? How does SPO impact SSP relationships? What does SPO look like, essentially?

To answer these questions, PubMatic partnered with Digiday to survey and interview advertisers, agencies and demand-side platforms (DSPs) to gain first-hand insight into the state of supply path optimization, including demand, progress, and impact.

The following is our US report, and here’s what we found:

  • Most buyers are already implementing SPO; 45% of buyers are actively implementing and 28% plan to within the next 12 months.
  • US buyers rely heavily on algorithmic tools, with 46% of US buyers employing algorithms beyond standard bidders.
  • Fraud and brand safety control is the most important factor in selecting SSP partners as buyers consolidate for SPO purposes

Download the full US study for additional insights and recommendations.

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