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SPO: Navigating the Cannibalistic Chaos of Ad Tech
Where jargon flows freely and acronyms rule the day, there exists a creature so elusive and enigmatic that it sends shivers down the spines of even the most seasoned ad tech experts. This creature, my friends, is known as Supply Path Optimization (SPO), and it's a beast that's been lurking in the shadows, ready to sink its teeth into the
industry. So, what the heck is SPO, you might ask? Well, grab your decoder rings and hold on tight, because we're about to dive into the murky waters of this cannibalistic practice. Imagine you're a demand-side platform (DSP), navigating the treacherous jungle of supply-side
platforms (SSPs). Each SSP has its own bag of tricks, its own secret handshake, and its own version of auction mechanics. It's like a chaotic bazaar where everyone's haggling for the best deal, but nobody's speaking the same language. Enter SPO, the algorithmic savior of the DSPs. It's the GPS guiding them through this jungle, helping them pick the ripest fruits (or bids, in this case) while
avoiding the rotten ones. Some DSPs use SPO to cherry-pick the most promising bids, while others use it to cut ties with SSPs that don't play by the rules. It's survival of the fittest in the ad tech wilderness. Why SPO Matters Now, you might wonder why DSPs are so
obsessed with SPO. Well, there are two big reasons. First, there's the issue of bid duplication. In this wild, wild west of digital advertising, bids are flying around like mosquitoes on a summer night. SPO helps DSPs avoid duplicating their bids, saving them from overcommitting their resources. Second, it's all about the auction mechanisms used by SSPs. You see, not all SSPs play by the
same rules. Some use second-price auctions, where the highest bidder pays the second-highest bid price. But others have their own secret sauce, and the result is an unholy mishmash of auction methods. In the grand game of thrones that is the ad tech industry, SPO has become a weapon of choice. Media buyers are demanding precision targeting, even as the old ways of doing things crumble like a
castle under siege. It's a battle for dominance, a scramble for the Iron Throne of ad tech supremacy. Havas Media Group, in its quest for ad tech partners, has slashed its roster of SSP partners from a staggering 42 down to a mere handful. It's a sign of the times, a signal that the industry is undergoing a seismic shift. Who's Eating Whose Lunch? There's a feeling in the air that DSPs are out to devour the lunches of SSPs. It's a game of cat and mouse, where both sides are trying to outsmart each other. But who will come out on top in this high-stakes showdown? At the heart of this intrigue lies "data activation," the ability for HMG's clients to target audiences on PubMatic's inventory without relying on those pesky third-party cookies. It's a dance of data and identifiers, a tango of targeting in the digital age. But SPO is just one battlefield in the war for dominance in programmatic advertising. The industry is
witnessing the rise of disintermediation, the act of cutting out the middlemen. Three musketeers have emerged in this grand scheme: GroupM, The Trade Desk (TTD), and Magnite. GroupM Premium Marketplace: Centralized Control GroupM has thrown its hat into the ring with the GroupM Premium
Marketplace. It's a bid to bring order to the chaos, to centralize control in a fragmented landscape. By partnering with Magnite and Pubmatic, GroupM aims to streamline media buying, negotiate better rates, and optimize the supply chain. It's a bid to remain relevant in an era where advertisers are exploring in-house programmatic options. The Trade Desk, on the other hand, has unleashed
OpenPath, a direct bidding solution that bypasses SSPs. It's a bold move that threatens to disrupt the SSP business model by eliminating intermediaries and reducing costs for advertisers. Magnite's ClearLine: Premium Video Focus Meanwhile, Magnite has its sights set on premium video with
ClearLine. With acquisitions like SpotX and SpringServe under its belt, Magnite is positioning itself as a player in programmatic guaranteed (PG) deals. It's all about maximizing spend on working media and simplifying the relationship between sellers and agencies. The Disintermediation Dilemma The rise of these products raises a critical question: Is disintermediation intentional, or is it merely a consequence of logical business decisions? The answer is likely somewhere in between. While these products aim to streamline processes and reduce intermediaries, they also offer value to both buyers and sellers. These developments in programmatic advertising may
not lead to an immediate industry collapse, but they signify a significant shift in how advertising transactions are conducted. Publishers and advertisers should seize these trends to negotiate favorable terms and ensure efficient supply paths. In this ever-evolving landscape, adaptability is the name of the game. Those who embrace change and find opportunities within it will thrive in the
dynamic and competitive world of programmatic advertising. The Dance of DSPs and SSPs In the complex tango between DSPs and SSPs, it's not about going around each other; it's about creating an ecosystem that ensures success in the future. Automation, transparency, and
efficiency are the key moves on this dance floor. As the industry wrestles with supply chain complexities, transparency, and value, the role of intermediaries is under scrutiny. The programmatic advertising landscape is evolving rapidly, and the players who adapt to these changes will be the ones who emerge victorious. In the end, it's a game of survival, and only the fittest in the ad tech jungle will thrive. As SPO and disintermediation reshape the industry, one thing is certain: The ad tech ecosystem is in for a wild ride, and no one knows where it will lead.
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All the news you need today, in a format that isn't TL:DR summarized for the busy executive.
🛍️🚀 Amazon's ad game is 💪! Raking in a cool $12.06 billion in Q3 2023 (a 26% rise 📈), they're diversifying with fresh offerings like Sponsored TV 📺. While AWS's earnings were a smidge below expectations at $23.1 billion, CEO Andy Jassy was still all smiles 😄, boasting about innovations in AI 🤖. Big names like adidas 👟 and
United Airlines ✈️ are on board with Amazon's techy tools. Insider Intelligence predicts Amazon's U.S. ad biz will hit a whopping $33.96 billion, marking a 234% leap from 2019 🚀. As Amazon showcased their ad services at the Unboxed 📦 conference, experts suggest Amazon Sponsored TV could become a hot favorite for brands big and small 📊. As the e-commerce giant dives deeper into ads, it's clear: they're not just selling stuff, they're shaping the future of advertising. 🌟🎯
📲💬 Threads is on 🔥! With a cool 100M daily active users, Zuckerberg's baby app is dreaming big, eyeing the 1-billion mark 🎯. Not just resting on its laurels, Threads rolled out shiny new features: polls 📊 and GIFs 🎉. While these might remind you of a certain bird app (cough X cough), there's a twist.
Threads' polls stick around for a day, and you get to pick who votes. As for GIFs, they're old-school cool, available right next to the image gallery. While Threads' recent updates might feel like déjà vu (looking at you, trending topics and edit button), Zuckerberg's aiming to build a sunnier social space. ☀️🔄 #ThreadsVsX 🖥️✅ Adform, the big player in programmatic ad tech, gets another gold star 🌟 from the Media Rating Council (MRC). Since 2017, MRC has been giving them the thumbs up👍 for their metrics, and they've done it again for desktop, mobile web, and mobile in-app metrics (both display and video). That's not all – Adform recently got a nod for their work in CTV 📺. Plus, they're flaunting certs from DAA, IAB, NAI, TAG, and ISO/IEC 27001. Talk about being in the
ad industry's good books! 🏆📊 #AdTechMVP U.S. ad market's on the up, but just barely! 📈 With a 0.1% rise in September, it's a hat-trick of monthly gains after a slump. 🎩💹 While we're 2.0% down from 2021's record-breaking September, it ain't all gloom amidst recession whispers. 📉👂 Kudos to the
little ad categories for pulling weight with a 1.7% boost, while the big guns dipped 1.0%. 🐭💪 vs. 🐘⬇️. Meta's on the seesaw's high-end, legs dangling with a 23% revenue jump to $34.15B 📈🦵. More eyes on ads with a 31% rise in impressions, though each ad's 6% cheaper. 🤑 Meanwhile, 2.09B folks
logged in daily in September (5% up YoY). 🌍 Snap's not slacking; 400M total users, 406M daily, with 12% YoY growth 🚀. And, their chatbot MyAI is buzzing with 20B+ messages from 200M users 🤖✉️. Revenue? A cool $1.19B, up by 5%. 💰 Amazon's in the spotlight with 181M EU users, earning the "very large online platforms" badge and extra regulations 🏅🔍. They're not thrilled, but hey, green is everyone's color, especially in marketing! 🟢👌.
In Utah's tech industry, a booming hub dubbed "Silicon Slopes", women face unique challenges and stark inequities. 🏔️🔧 Trina Limpert, once deemed a "risky hire" because she's a woman, felt gender disparities that many echo. Despite Utah's tech job growth leadership, it lags behind in women's equality metrics. 📉💼 A blend of political conservatism and a high Mormon population influences the tech culture. The state
exhibits one of the worst gender pay gaps in the US, and societal expectations lean towards women as primary caregivers. 🏡👩👧👦 Many women describe the environment as a "Mormon boys' club", with church missions often seen as a badge of honor, especially in sales. Amidst this backdrop, women strive for equity and respect in an industry where gender norms are firmly entrenched. 👩💻🚫🔄.
🤔 WPP's GroupM is feeling the heat, with insiders
raising eyebrows at CEO Mark Read's recovery strategy. 📉 After a string of account losses, totalling billions in ad spend, rival agencies are having a field day. 🏆 The whispers around the ad-world water cooler suggest major shake-ups, and many are waiting with bated breath to see if Read can make WPP shine again.
Three's a digital party! 🎉 Yelp's leveling up its ad
game with AI 🤖, promising smarter ad matches and photogenic first impressions. Meanwhile, Google Ads is giving its console a makeover 💄, putting you in charge of your metric view. Swipe left or right, as you fancy! 👉👈 And for the Halloween haunters, TikTok’s got your back with a spooktacular 🎃 ad guide. Looking to stir some ghostly engagement? #HalloweenHashtags might be your potion! 🕷️👻 Thanks for the digital drama, trio! 📱💡🚀.
🍹Diageo, our global cocktail connoisseur, isn't just shaking drinks but also the future of boozing. After pouring $300M into Distill Ventures for young startups, they're eyeing digital startups for a splash of AI magic, following their previous success with "What’s Your Whisky" tool. 🥃🤖 Their fresh brew, Fusion by Diageo, is rolling out a
13-week starter program. And on the side, get a sober buzz from Seedlip’s new campaign, starring Bridgerton's heartthrob, Regé-Jean Page. 📺🍸Cheers to innovation and star-studded sips! 🌟🥂. Big moves for Overstock.com! 🛏️🛒 From being known as Bed Bath & Beyond, they're now switching to simply "Beyond,
Inc." on Nov. 6, 2023. Plus, they're moving their stock game from NASDAQ to NYSE with a fresh ticker symbol: BYON. 📈 But wait, there's more! Remember when Overstock bought Bed Bath & Beyond? They went on a rebranding spree, launching in Canada and the U.S. under the new banner. 🌍💼 Now, as they fully embrace "Beyond," CEO Jonathan Johnson is all about spotlighting their iconic Bed Bath & Beyond brand. The future? Merging old charm with new strategies, aiming to reach and treat
millions. Beyond exciting times ahead! 🚀🎉🛍️.
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Email Marketing Law Update: Google Announces New Requirements for Bulk Email Senders to Gmail
On October 3, 2023, Google released an
announcement entitled “New Gmail protections for a safer, less spammy inbox.” By February 2024, Google will require bulk senders to authenticate their emails, allow for easy unsubscription and stay under a reported spam threshold.
“…[T]oday, we’re introducing new requirements for bulk senders — those who send more than 5,000 messages to Gmail addresses in one day — to keep your inbox even safer and more spam-free,”
according to the announcement. READ ARTICLE
HOW GIANTS LIKE NETFLIX ARE CIRCLING BACK TO CABLE’S SHADOW
The age of streaming dawned with a promise, a vision of a horizon where content was king, and viewers were no longer shackled
by the constraints of traditional cable. But as the years have rolled on, those early promises seem to have evaporated, much like morning mist under the blazing sun. Today, we stand at a curious juncture where the once-revolutionary pioneers, like Netflix, echo the missteps of the very institutions they vowed to replace. READ MORE OF THIS STORY
The Ascendancy of Connected TV: A Dive into the Future of Advertising
In the dim light of modern living rooms, a battle is being waged: the evolution of television consumption. From black-and-white family gatherers to colorized rectangles of
entertainment, TVs have long been the center of home recreation. Today, the rise of Connected TV (CTV) marks a significant shift in how we view and interact with content. As Millennials, Gen X, Y, and even Gen Z make their mark, they’re tuning into CTV like never before. READ THE FULL STORY
The Murky Waters of Podcasting Ad Fraud
The digital soundscape of podcasts has experienced exponential growth. Millions worldwide tune in every day, taking solace in the intimate embrace of a podcast's
comforting audio. Like any influential medium, podcasts have piqued the interest of advertisers and with that, an influx of capital. But this golden age for podcasts, with its rapid expansion and significant revenue milestones, is facing the timeless ailment of the advertising world: fraud. READ MORE
ADTECH’S SECRET SAUCE: IT’S NOT ALL ABOUT THE CODE
If you're anything like me, it's all too tempting to get caught up in the glitzy allure of cutting-edge software and groundbreaking products.
Adtech companies, often driven by an unwavering belief in their innovative solutions as the ultimate game-changers, have been swept away by the irresistible current of technology. As the adtech industry continues to grow, it is becoming increasingly important for companies to differentiate themselves from their competitors. According to Joe Zappa, the Founder of Sharp Pen Media, the key to this differentiation lies in the
quality of service and caliber of individuals backing the product. Adtech companies often place a steadfast faith in their software or product, but this can lead to a focus on features and functionality rather than the overall customer experience. By prioritizing customer service and investing in top talent, adtech companies can set themselves apart in a crowded marketplace. READ FULL STORY
IS THE OPEN MARKETPLACE DONE? THE SLOW EXODUS FROM OMP TO DIRECT-SOLD ADVERTISING Ah, the digital
age – a world where you can have 500 friends yet be terribly alone, and where advertisers think they’re omnipresent until they realize 70% of their audience is in the digital witness protection program. But in an age of hyper-targeted advertising, there’s a plot twist worthy of a classic film noir. The Open Marketplace (OMP) – the trusted intermediary between publishers and advertisers – seems to be on the ropes. Are its days numbered?
READ MORE OF THIS ARTICLE
FORTNITE: THE ULTIMATE PLAYGROUND FOR BRANDS AND GAMERS
There’s a war going on, and it’s not just between the players. It’s a war for attention, for loyalty, for hearts and minds. It’s a war that brands are waging on the virtual battleground of Fortnite, the colossus of gaming that has captivated millions of fans across the globe. In this article, I reveal the secrets of Fortnite advertising, the psychology behind its appeal, the tactics employed by savvy marketers, and the fine line between enchantment and annoyance.
READ THIS STORY
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