Advertisers: Why You Should Care About OpenPath and Its Effects on the SSP Market
The advertising industry is in the midst of a digital transformation. Advertisers increasingly turn to programmatic advertising to reach their target audiences more effectively. And as ad dollars move into the programmatic space, advertising platforms like The Trade Desk have led the way. Some components that make up programmatic advertising are a demand-side platform (DSP), a supply-side platform (SSP), and ad exchange. The demand-side platforms (DSP) market revenue is projected to reach USD $79,804 million in 2025. Meanwhile, the SSP market is expected to reach USD 24,522.78 million by 2027.
These are significant numbers; however, it is essential to consider that in 2021 alone, programmatically sold advertising was worth 418 billion USD globally, with nearly 75% of global programmatic spending being conducted in North America.
As the SSP market continues to grow and evolve, The Trade Desk is one of the few companies that has not entered this space. There are several reasons why The Trade Desk has not ventured into the SSP market. Keep on reading to find out why!
The term SSP stands for Supply-Side Platform. But what does this entail? SSP is an advertising technology that helps website owners and publishers monetize their inventory by connecting them with demand-side platforms (DSPs) and ad networks. SSPs also provide tools to help publishers manage their ad inventory and optimize yield.
Some SSPs focus on a specific type of inventory, such as video or mobile, while others offer a more general solution. SSPs vary in terms of the features they offer, but most provide some combination of the following:
- Ad serving: SSPs can serve ads directly to website visitors or pass along ad requests to DSPs and ad networks.
- Auction management: SSPs typically use some form of the auction to sell ad inventory, whether it’s a first-price auction, second-price auction, or something else.
- Yield optimization: SSPs often include tools to help publishers maximize revenue from their ad inventory, such as price floors and dynamic reserve pricing.
- Reporting and analytics: SSPs provide publishers with data on their ad inventory, such as who is buying it and how much they’re paying. This information can be used to optimize yield and improve the overall performance of a website.
Get to know SSPs
The SSP market is a complex and ever-changing landscape. Advertisers need to be aware of the different SSPs available to make the most informed decisions about where to invest their advertising budgets.
There are a few key things to know about SSPs:
- SSPs are technology platforms that help publishers sell advertising inventory.
- SSPs automate selling ad space, making it more efficient for advertisers and publishers.
- SSPs provide data and insights that can help publishers optimize ad sales.
Trade Desk is a technology company that provides a self-service platform for advertising buyers. The company was founded in 2009 and is headquartered in Los Angeles, California. With over $3 billion in market capitalization, Trade Desk has been one of America’s leading private companies since it went public in 2016.
One of The Trade Desk’s key offerings is OpenPath, a tool that helps advertisers buy advertising inventory from multiple sources in a single place. With OpenPath, advertisers can access inventory from multiple ad exchanges and advertising networks, including Google’s DoubleClick Ad Exchange, Magnite, and Xandr.
OpenPath is a new advertising platform that allows publishers to monetize their content through advertisements. The company has already significantly impacted the SSP market, offering higher CPMs than other platforms, and it does not require any additional infrastructure or third-party services for its users. This has led many publishers to switch to OpenPath to maximize their revenue. However, some advertisers are concerned about the high CPMs and have begun to scale back their spending on the platform. This could lead to a decrease in revenue for OpenPath in the future. Nevertheless, the platform remains one of the most promising options for publishers looking to monetize their content through advertising.
Openpath has opened up a whole new world for programmatic advertising
OpenPath is a significant step forward for The Trade Desk and the programmatic advertising industry. By simplifying the process of buying advertising inventory, OpenPath will make it easier for advertisers to buy ads through programmatic channels. And as more advertisers move into the programmatic space, the need for platforms like The Trade Desk will only grow.
The Trade Desk is well-positioned to take advantage of the shift to programmatic advertising. With its technology platform and OpenPath tool, The Trade Desk is helping to make programmatic advertising more accessible and easier to use. And as the programmatic advertising industry continues to grow, The Trade Desk is poised to play a leading role.
Advertisers should keep these things in mind when considering investing in an SSP. SSPs can be a valuable tool, but it’s essential to understand how they work to make the most of them.
Why The Trade Desk strays away from the SSP market
One reason is that The Trade Desk has always focused on providing a DSP (demand-side platform) for programmatic advertising. Entering the SSP market would require a significant investment in new technology and team members with expertise in this area. Another reason is that SSPs have historically been geared towards larger publishers with high traffic volumes. The Trade Desk’s focus has been on working with smaller publishers and helping them to monetize their inventory effectively.
However, with the acquisition of OpenPath, The Trade Desk is now well-positioned to enter the SSP market. OpenPath’s technology will give The Trade Desk the ability to offer SSP services to its publishers, and the team has the expertise needed to make this transition successfully.
In addition, The Trade Desk’s focus on small and mid-sized publishers makes it uniquely positioned to succeed in the SSP space. These publishers are often underserved by larger SSPs who focus on working with the most prominent players in the industry. The Trade Desk’s SSP offering will be tailored specifically to the needs of these smaller publishers, giving them access to the same high-quality programmatic inventory as their larger counterparts.
Google & Trade Desk: What Does this mean for the future of programmatic advertising?
The Trade Desk announced it would be pulling all ad spending from Google’s platform by April 15th, 2022. This surprised many in the industry, as the two companies had been working together closely for some time. Trade Desk is a significant player in the programmatic advertising space (managing approximately $4.2 billion of the world’s ad spend), and Google is one of the largest digital advertisers in the world. The partnership between these two companies had been seen to help both parties grow their businesses. However, The Trade Desk is no longer interested in working with Google. The company has not given any official statement on the matter, but insiders say that they are unhappy with how much control Google has over the ad ecosystem.
Google can control the ecosystem because it has an ad space monopoly. By having a monopoly, they can dictate terms to publishers and advertisers alike. This allows them to keep a more significant percentage of the revenue for themselves and gives them an incredible amount of data they can use to their advantage.
Google can keep a more significant percentage of the revenue because they’re not sharing it with as many partners. They can also sell ads for higher prices because they have a large audience. And finally, they can target ads more effectively because they have so much data about their users. Google’s dominance in the online advertising market is mainly due to its control of the DoubleClick ad platform. DoubleClick is a DSP that allows advertisers to buy ad space on websites and track the performance of their ads. It is one of the most popular DSPs in the world and is used by many of the largest advertisers and publishers.
Google purchased DoubleClick in 2007 for $3.1 billion. This gave them a large share of the online advertising market and solidified their position as a major player in the industry. Since then, they have continued to grow their business and expand their reach. Today, Google is one of the largest buyers of online advertising space and has significant control over the ad ecosystem.
As a leading SSP, Google is uniquely positioned to control the ad ecosystem. By controlling the supply of ad inventory and demand for ad space, Google can dictate terms to publishers and advertisers alike. This gives them an unfair advantage over other SSPs who rely on Google’s platform to reach their audience.
Google’s control over the ad ecosystem has led to controversial practices, such as demanding a cut of publishers’ revenue in exchange for access to their inventory. This has made it difficult for other SSPs to compete and has left many publishers frustrated with the current state of affairs. It remains to be seen what this will mean for the future of programmatic advertising. The Trade Desk is a significant player in the space, and its decision to pull out of Google’s ad auction could have a ripple effect throughout the industry.
Looking at the Pros & Cons of OpenPath
OpenPath is a new open-source SSP that is shaking up the online advertising market. Advertisers are no longer tied to one specific SSP, but can now choose from various options. OpenPath’s Self-Service Portal (SSP) offers a wide range of options for advertisers to choose from. Advertisers can select the type of ads they want to display, the targeting criteria for their ads, and the budget for their campaigns. OpenPath also provides detailed reports on ad performance so that advertisers can track the results of their campaigns. This flexibility creates a more competitive landscape, benefiting advertisers and publishers alike.
OpenPath has already made waves in the industry and will only become more popular in the coming years. As more advertisers and publishers adopt open source SSPs, the online advertising market will continue to grow and evolve.
OpenPath negatively affects the SSP market by making it more difficult for small and medium-sized publishers to compete. OpenPath gives large publishers an unfair advantage by allowing them to sell their inventory directly to advertisers, bypassing the need for an SSP. This means that small and medium-sized publishers are at a disadvantage in pricing and reach, ultimately hurting their bottom line. OpenPath also makes it more difficult for new entrants into the SSP market to compete, as they cannot get the same direct access to advertisers that the more prominent players have. This creates a barrier to entry that stifles competition and innovation in the space.
OpenPath is an SSP that helps connect advertisers with publishers. OpenPath provides several benefits for advertisers and publishers, making it a valuable tool for anyone looking to improve their SSP business. For advertisers, OpenPath offers real-time bidding, allowing them to bid on ad space. This means they can optimize their campaigns on the fly, ensuring they are getting the most bang for their buck. In addition, OpenPath offers detailed reporting and analytics, so advertisers can track their progress and see what is working and what isn’t.
For publishers, OpenPath offers high-quality inventory from top-tier publishers. This ensures that advertisers are getting the best possible exposure for their ads. In addition, OpenPath offers competitive pricing so that publishers can maximize their revenue. OpenPath is a valuable tool for anyone looking to improve their SSP business. Advertisers can benefit from real-time bidding and detailed reporting, while publishers can benefit from its high-quality inventory and competitive pricing.
Final Thoughts
The Trade Desk has decided to pull all ad spending from Google’s platform and instead focus on developing its proprietary software, OpenPath. This move could be seen as a Pro or Con for the company, but how this decision will play out ultimately remains to be seen. For OpenPath, this could be an opportunity to corner the SSP market – but only if it can keep up with The Trade Desk’s development pace.
We’ve seen how programmatic advertising is evolving and what the future may hold. What does this mean for you as an advertiser? More than ever, programmatic buying is a powerful tool to reach your target audience.
Advertisers are always looking for ways to improve their programmatic advertising campaigns, and OpenPath has opened up a whole new world for them. However, there are some concerns about using SSPs, which The Trade Desk is choosing to avoid. Google & TradeDesk’s partnership could significantly impact the future of programmatic advertising. At AdSkate, we understand the importance of using SSPs and the benefits of working with The Trade Desk. We can help you navigate this complex landscape and find the best solution for your needs. Contact us today to learn more!
