In the conventional programmatic ecosystem, there are mainly 2 technology layers.
DSPs and SSPs connect to each other through a protocol called OpenRTB and help automate the media buying/selling process.
Some new generation programmatic players find this model inefficient for digital out-of-home advertising and try to simplify the technology layers as below.
The latter approach is generally more cost-effective and efficient, as it reduces the number of middlemen and the complexity of required technical integrations.
Indeed there is a concept called supply-path optimization (SPO) in digital programmatic advertising, where the buyers and sellers try to trade through the shortest path possible and reduce the number of players between themselves.
Another programmatic concept is called supply-chain transparency, which is about the reconsideration of involving some technology players that don’t add any value. Again, with each additional technology layer, the transparency reduces, and potential cost increases.
An exception here could be about SSP belonging to the media owner, in which case they’d be in control of that technology layer and this could increase efficiency and transparency.
Also, it doesn’t necessarily mean independent DSPs and SSPs would operate inefficiently. It just means that we need to learn from the digital advertising industry and not repeat the same mistakes in pDOOH.
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