The overwhelming majority of the time {that a} bid request is shipped out by a supply-side platform, providing a chance to promote on a writer’s web site, nobody responds.
The usual fill charge for SSPs is 1%. In different phrases, there’s only a 1% likelihood {that a} bid request despatched out by an SSP is met with a bid from an advertiser or its buy-side tech companions, in keeping with executives from three giant SSPs.
This doesn’t imply that the majority publishers’ stock is unmonetized. Publishers work with many SSPs that may ship separate requests for a similar slot, particularly because the creation of header bidding virtually a decade in the past.
What it does imply, as everyone knows however maybe to not this extent, is that there’s a lot of duplication—and, at occasions, inefficiency—within the programmatic provide chain.
Tons of provide paths exist, whereas not essentially providing any distinction from each other. Couple that with dwindling sign loss because of the deprecation of cookies subsequent yr, and monetizing the open net, an estimated $88 billion, is just going to get extra chaotic.
“Header bidding has multiplied the variety of provide paths,” mentioned one SSP government, talking anonymously. “It’s an fascinating query to see in the event that they’re all including worth.”
Pruning provide paths
At SSP TripleLift, gross request quantity is a whole lot of billions day-after-day, regardless of there being round 5 billion folks globally with web entry, mentioned chief product officer Andre Eifler.
“These numbers don’t actually add up,” he added. “For certain, there are tons of duplicate provide paths.”
Whereas manufacturers and publishers have been pruning provide paths for years underneath the banner of provide path optimization, consternation in regards to the inefficiencies of the programmatic provide chain is just constructing.
Commerce physique the Affiliation of Nationwide Advertisers just lately discovered that the common advertiser makes use of 19 SSPs. Of the highest 25 SSPs utilized by manufacturers, charges vary from 5% to twenty% of media spend, whereas income paid to the writer ranges from 40% to 83%. The ANA recommends that manufacturers work with between 5 and 7 SSPs.
