By Clay Gill, CEO, Matterkind Australia
If you have time, take a look at IKEA’s supply chain vision. This helps to present a nice perspective of how one might view Programmatic Provisioning Path Optimization (SPO);
“…. its different functions (including supply chain operations and inventory management) work together to support its distinctive value proposition.
In May 2020, PWC conducted a study on behalf of the Incorporated Society of British Advertisers (ISBA) – which found that there was still an unknown delta in the programmatic supply chain, once again suggesting that a cloudy supply still exists. Not only did the report conclude that it was murky, but the complexity within it contributed to a distinctly opaque supply chain.
Didn’t we all agree with Marc Pritchard in 2017 that disorder is not the right way to go?
Three years after Pritchard’s statements, PWC concluded that nothing had changed much. It was a damning indictment against our industry (trust being at the heart of it) and something we took very personally from Matterkind.
In advertising technology, some of the challenges have been related to fees, number of participants and transparency of auctions. With channel contributors not fully justifying their “value proposition” to the advertiser or publisher. Therefore, darkness is found when non-active media participants are not identified or add value.
A solid market is therefore one where SSP (Supply Side Platform – adtech which allows publishers to manage their inventory of ad impressions and maximize returns) are more responsible and transparent, adding distinctive value. Because nowadays, their client is not only the publisher but also the advertiser. The same could be said for DSPs (Demand Side Platform – an automated buying platform, where advertisers can buy inventory) which could improve their solutions to reward successful publishers and successfully increase advertiser strategies. This is where we eliminate the obscure doubts about who is in the supply chain and what exactly are they doing?
The ACCC ad tech investigation has therefore concluded what we already knew, namely that there is a need to establish a procurement path that is openly transparent, highly simplified and with obvious contributions from all parties. concerned. One that delivers value to both the advertiser and the publisher. After all, a healthy market is a trustworthy, fair and competitive environment where buyers and sellers can discover prices.
To combat this obscurity, Matterkind has already embarked on a process of optimizing the supply path that resolves most of the accusations in the ACCC report. We conducted a call for tenders where SSP partners were invited to participate in the following areas:
- Full transparency with the provision of log-level data – enabling auditability
- The ability to generate value – towards the advertiser or the publisher
- Solutions that support improving campaign performance for our clients
After reviewing 11 major supply partners with the goal of gaining full control of the supply chain, and with selected volunteer partners, Matterkind created a completely transparent and more efficient supply chain. These initial partners were Index Exchange, Pubmatic, Triplelift, OpenX and Magnite.
In addition, our DSP partners were invited to customize their technology to reward SSPs aligned with customer needs and their transparent approach. Through extensive testing of the technologies of our DSP partners, we have identified significant advancements in all three areas examined.
- Fully verifiable logging level transparency in our supply chain
- 55% reduction in effective CPM costs
- Auction win rates improve up to 40%, naturally increasing campaign performance
- Up to 60% improvement in range
- Average reduction in non-functional media costs by 5%
But what is most gratifying is the shared success and confidence gained by both advertisers and publishers through this initiative.
Janette Higginson, Index Exchange Demand Manager for APAC, said: “Transparency in the supply chain enables a more efficient purchasing process, giving agencies the ability to effectively generate and present results. to their clients, which is something that we at Index Exchange are very passionate about. We are delighted to partner with Matterkind as they continue to lead their SPO efforts in the Australian market and look forward to growing our partnership, paving the most effective, efficient and transparent path to the programmatic sourcing for our customers ”.
Flaminia Sapori, National Head of Partnerships and Strategic Investments, said: “SPO is the biggest change we can make as media buyers today and the best way to approach transparency in procurement. Through our DSP and SSP partnerships, we are able to provide full supply chain transparency and auditability for all of our customers. Increase the efficiency of our clients’ work supports and in return improve the performance of publishers ”
It is encouraging that the main stakeholders in the Australian media landscape are finally agreeing on the way forward – and it is a win-win situation for all parties involved. This galvanizes the view that we should not be accepting unknown deltas, aggregate audience numbers, or unauditable media offerings. Advertisers and publishers deserve a clear and transparent line of sight. Without it, access to quality content is diminished, the quality of the publication is eroded, the big brands are fading, but most importantly, as consumers we lose.