Header bidding delivered the great promise of providing sellers with better coverage of the demand sphere and providing buyers with better visibility into the supply sphere. But not without side effects.
SPO is a product of the header bidding pandemonium that still creates cluttered wrappers, header tags and SSPs all running through the same publisher inventory at a similar priority and price.
Sell-side House Rules
While it did wonders to democratize the bidding process and introduce better inventory to programmatic transactions, it often resulted in the same impression being auctioned by multiple sell-side platforms simultaneously, creating an avalanche of bid requests with no visibility to the path of the winning bid. With a rev share cut that changes from SSP/exchange to another, a buyer can not gain a true insight into its winning chances, raising confusion about the right choice of SSP.
That is why we are seeing a shift on the buyer side as they become more discerning about the exchange and SSPs they’re after. In an effort to regain control over their bidding processes, they are forcing SSPs and exchanges to disclose certain practices such as their publisher fees, bid caching, auction dynamics and more. These threshold “house-rules” and validation processes are intended as the “code of conduct” when doing business. By implementing these requirements they have gained a better view into the buying process, naturally decreasing the number of partners they work with while enhancing the value of an impression. SSPs and exchanges must comply with agency demands, or risk having their pipes turned off.
To further support a direct path in video transactions, a new video supply path optimization technology is forging a more efficient pipeline. The SPO creates a less polluted route, reducing artificial flooding and filter out intermediaries that do not serve their interests at heart. SPO filtering process significantly reduces duplicate inventory and QPS loads, increasing bidding and winning chances while bringing down costs.
Forging a direct path leads to increased transparency and trust in the sell-side agencies, increasing their will to spend.
The direct-to-view advantage
Video SPO (VSPO) technology works inside the player, as opposed to display. Being built-in to the player, VSPO runs each video impression internally, making it possible for the optimization process to analyze every impression route and create a transaction process in one hop.
Optimization algorithms analyze and select video bids with the highest chance of winning an auction. Using predictive modeling and advanced yield optimization that is built into the player, it can overcome re-auctioning and prevent video bidding duplications that provoke QPS and flare up DSP frustration. In a unified yield optimization process, VSPO can map out the ideal route between the buy and sell side across the entire transaction landscape including direct, programmatic and marketplace environments.
In the end, VSPO clears the way for a transaction scape devoid of waterfalls, re-auctioning, and intermediaries. Maybe it’s time to lay down the pipes for sterilized quality video transactions that secure more transparency, fewer timeouts, and lower DSP costs.