Glossary | S | Supply Path Optimization (SPO)
What is SPO?
Supply Path Optimization (SPO) describes plans undertaken by marketers and/or Demand-Side Platforms (DSPs) to create the most direct, trusted, verified and efficient paths to developer’s inventory. As a result of SPO, they reduce the number of Supply-Side Platforms (SSPs), ad exchanges and other supply partners that they work with and place ads with.
This happens as marketers and DSPs reduce the duplication of supply across partners but also by reducing the number of hops in the supply chain. SPO is important to demand partners because it helps assess the value of every single programmatic pipe.
Of course, there are many variables that define this value including but not limited to transparency, efficiency and quality of the pipe, infrastructure optimization capability and scale.