Oh, to be an advertiser in the frenzied, fragmented frontier of Connected TV (CTV) advertising! It’s like playing a high-stakes game of Twister—blindfolded and on a moving train.
You think you’ve found the perfect spot to place your ad, only to discover that you’ve foot-faulted into a pricier or entirely wrong segment of the complex CTV landscape.
Welcome to the pandemonium of Supply Path Optimization (SPO) in the realm of CTV—where the spaghetti-like intricacy of routes can make even the most seasoned media buyer feel like they’re herding cats in a zero-gravity chamber.
Brick (Chung Jung) Liao, a seasoned pro in the data-driven trenches of the ad world and current Head of Integrated Data Solution at 91APP, unravels the somewhat tangled threads of Supply Path Optimization (SPO) with a keen eye. He notes, “The concept of SPO is optimizing the advertising supply process. An excess of middlemen leads to a more complex process, which erodes the profits between the buy and sell sides. Conversely, simplification can increase the profits for one or both parties.” In essence, SPO is about cutting out the unnecessary middlemen—or as Liao succinctly puts it, “de-intermediation.”
The rise of Header Bidding, celebrated for its openness and convenience, inadvertently invited a swarm of ad tech middlemen to the party, expanding their chances to snag ad inventory and bombard the buy side with requests. This innovation, while groundbreaking, wasn’t without its drawbacks. As Liao points out, when media outlets connect to multiple SSPs through Header Bidding, it might lead to a bidding frenzy over the same ad spot.
This results in a DSP receiving multiple bid requests for what is essentially the same ad impression. It’s like being asked out on several dates by the same person using different email accounts; confusing much?
Thus, even if a DSP decides to respond to every echo of a request, they can only win the ad spot once, leading to a dizzying but ultimately pointless bidding war. This redundancy not only clutters the process but can inflate costs without adding value, highlighting the critical need for SPO strategies that streamline the path between advertisers and publishers, ensuring efficiency and integrity in the ad bidding arena.
The Maze of Monetization: Where Every Path Is a Puzzle
Navigating the CTV supply chain is not for the faint-hearted. With up to 114 different supply paths leading to a single TV app, finding the most efficient and cost-effective route is akin to solving a Rubik’s Cube—while juggling fire. And just when you think you’ve mastered the sequence, the puzzle rearranges itself, thanks to the ever-changing dynamics of ad-supported platforms and viewer habits.
Consumers, those elusive creatures, are continually reassessing their subscriptions. With a third eyeing ad-supported options, the terrain becomes even more rugged for advertisers aiming to capture attention without annoying repetition. Imagine reaching the same viewer through multiple apps, bombarding them with the same ads until they can recite your commercials verbatim. It’s no wonder there’s a growing chorus of viewers pleading for an ad break, literally.
Pricing Perplexities: Paying for the Privilege of Confusion
Imagine stepping into the ad market with your hard-earned budget, ready to snag some prime CTV real estate. You pick a path that seems promising, only to find out that another advertiser, using a different route, paid far less for the same outcome. That’s the reality in today’s CTV advertising market, where price disparities are not just common; they’re colossal. A variation of up to 250% in pricing is not just a quirk—it’s the norm. For the uninitiated, this can mean the difference between paying for a luxury espresso machine or settling for instant coffee, both fetching the same number of eyeballs on your brand’s message.
This bewildering price variability stems largely from the tangled web of supply paths that advertisers must navigate. Each path, be it direct from a broadcaster or through myriad layers of digital intermediaries, comes with its own pricing structure, hidden fees, and mark-ups. As these ads traverse the digital ecosystem, each hand they pass through adds a layer of complexity and, often, cost. The same ad could travel through a direct publisher’s path at one price and through a reseller’s circuitous route at another, drastically inflated price, leaving advertisers to wonder if they’re paying for performance or simply lost in the ad maze.
The role of intermediaries and resellers in this process complicates things further. These middlemen often present themselves as gateways to better pricing and access, but they can also obscure the true cost and value of ad placements. With each intermediary taking a cut, the final cost can balloon, distorting the original value proposition. Navigating this landscape requires a savvy understanding of where these costs are incurred and a strategic approach to supply path optimization that minimizes wasteful spending. Advertisers need to sharpen their negotiation skills and demand transparency, ensuring that their advertising dollars are spent efficiently, reaching potential customers rather than lining the pockets of unnecessary intermediaries.
The Illusion of Choice: More Isn’t Always Better
In the carnival-like world of CTV advertising, marketers are tempted by a buffet of options that promise the eyeballs of every Tom, Dick, and Harriet streaming their favorite binge-worthy series. But don’t be fooled—this feast is less an all-you-can-eat and more of a mirage in a media desert. The myriad platforms and convoluted pathways resemble a choose-your-own-adventure book where half the pages are glued together. Advertisers think they’re getting a VIP pass but might as well be wandering in a maze blindfolded.
And then enter the intermediaries—those not-so-merry middlemen. They swoop in with promises to pave your path to advertising Shangri-La, only to lead you down a rabbit hole of inflated costs and diluted impacts. These guys are the tollbooth operators of the digital highway, eager to collect their due at every turn. The more layers between your ad and its audience, the murkier and pricier the journey becomes. What was supposed to be a direct route turns into a scenic tour through your budget, draining your resources without adding value.
To navigate this funhouse, advertisers need to arm themselves not just with a map, but with a machete to cut through the thicket of BS. It’s about getting smart, going lean, and demanding transparency. Rip off the blindfold and insist on a direct line of sight to where your ads are going. Because in the end, simplifying the journey isn’t just about saving pennies—it’s about regaining sanity and making sure your ad dollars actually land you in front of eyes that want to see your message, not just the ones paid to look.
A Path Forward: Simplifying the Complex
Welcome to the thunderdome of CTV advertising, where the only thing more convoluted than the content offerings are the pathways to place your ads. So, what’s an advertiser’s first move in this high-stakes game of chess? Breathe deeply—preferably not into a paper bag, but I wouldn’t blame you if you did. The next step? Begin a relentless campaign for transparency. You wouldn’t buy a car with a locked hood that only the dealer could open, so why settle for less with your ad placements? Demand clarity and straightforward tools from your CTV partners. It’s about knowing where your ads will land, not just tossing them into the digital abyss and hoping for the best.
Stephen Sumner lays it out with unvarnished clarity for advertisers caught in their own costly loop: “Advertisers that don’t turn off the multiple dozens of exchanges in a media buy are essentially bidding against themselves and costing themselves more money.” The only ones laughing all the way to the bank? The ad tech middlemen, who slice off a hefty chunk of those inflated CPM bids. This leaves us pondering a crucial question: How many of you advertisers knew you were unwittingly bidding against yourselves, or have the means to check if you are—or aren’t? If the answer is as murky as a back-alley deal, it’s high time for a transparency tune-up in your ad buying strategy.
Now, onto embracing those direct deals. Think of these like farm-to-table dining for your ad dollars—fresh, straightforward, and satisfying. Direct deals cut out the middlemen who are too eager to slice up your budget like it’s Thanksgiving turkey. They leave you dealing directly with the source, which not only provides peace of mind but also increases your ad’s impact. When you eliminate the intermediaries, you’re not left wondering if your ad spend is being used as filler in someone else’s budgeting gaps.
But let’s be real: Sometimes you can’t avoid the labyrinth of third-party paths. It’s like deciding to make a simple sandwich and suddenly finding yourself in a five-star restaurant kitchen. When you do have to go down this route, arm yourself to the teeth with data and a rock-solid Supply Path Optimization (SPO) strategy. Think of it as your digital Excalibur—cutting through the fog of war in the marketplace to secure visibility and efficiency. This strategy isn’t just a fancy accessory; it’s your main line of defense against paying for phantom views.
Of course, in the CTV realm, simply being prepared is only half the battle. The other half? Staying nimble and well-informed. You’ll need to pivot with the grace of a ballet dancer and the speed of a street racer—ready to shift gears at a moment’s notice as the digital landscape morphs. This part of the game requires not only keeping your eyes on the prize but also having your ear to the ground, listening for the subtle shifts that signal when it’s time to jump on a new opportunity or dodge a potential setback.
Finally, gear up and sharpen those media buying skills. Yes, navigating CTV advertising is akin to riding a rollercoaster designed by a mad scientist—thrilling, unpredictable, and not for the faint of heart. But for those who master this art, the rewards can be substantial. Like conquering Everest, the view from the top of a well-orchestrated CTV campaign can be breathtaking.
Here we are at the climax of this CTV circus, where navigating ad placements feels more like a game of whack-a-mole with your budget on the line.
Let’s drop the curtain on the pretense that this is a straightforward affair. If you’ve kept up thus far without reaching for the antacids, kudos to you, my intrepid advertising adventurers.
Remember, it’s not just about surviving this madhouse—it’s about mastering the art of the savvy spend and getting your brand’s message across without accidentally bankrolling the murky middleman’s new yacht.
And for our grand finale, let’s dream big but plan meticulously. It’s time to don your metaphorical armor and dive headlong into the fray. Arm yourself with data, insist on transparency, and maybe—just maybe—try to enjoy the ride. After all, navigating the labyrinth of CTV is not just a task; it’s an art form, where the brave prosper and the unprepared become cautionary tales.
Here’s to not just playing the game, but changing it.
Let’s make some noise, disrupt the disruptors, and maybe, just for fun, turn this whole crazy game on its head.
