A simplistic understanding of the programmatic supply chain is that ad exchanges establish connections between DSP demand and publisher supply. In this model, the DSP pays the exchange, and the exchange then pays a publisher.
But a common variation of the programmatic supply chain is the case where an exchange sources supply indirectly from an intermediary. In this model, the DSP pays the exchange, but the exchange then pays a supply chain intermediary instead of the publisher.
Having studied hundreds of supply-side advertising technology companies that power auctions for over 1.5 million websites, mobile apps, and CTV apps, we think marketers can organize their supply path optimization strategies around four major categories of indirect supply chains:
We published the first version of this whitepaper in May 2020.
Since then, the programmatic supply chain and the industry standards that govern it have rapidly evolved. Most notably, in April 2022, the IAB Tech Lab released new guidance for how publishers can signal supply chain directness to buyers and how buyers can use those new signals (see here).
In this updated whitepaper, we re-introduce a framework that programmatic buyers can use to identify value-adding direct and indirect supply chains, and we recommend practical steps marketers can take to exclusively transact with trusted counterparties.
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