Smarter buying strategies for agency decision-makers
When allocating budgets across screens, channels, and platforms, video stands apart. The high-impact format commands the largest share of spend, the highest CPM investments, and the biggest potential upside and downside risks.
Yet, media industry leaders know the current video supply chain is fundamentally broken. Whether you’re buying online video, connected TV (CTV), or digital out-of-home (DOOH), a complex maze of intermediaries dilutes campaign performance, increases the risk of fraudulent traffic, and often costs advertisers nearly half of every dollar spent.
Nowhere is this opacity more evident than resold inventory, where the average CTV ad might be offered through over 30 SSPs while mysterious middlemen extract fees as high as 39%.1
Leading brands and agencies are moving beyond this broken status quo with a new approach that prioritizes direct paths to premium video. This guide looks at how advertisers can scale performance across video investments with:
Video investments have the biggest direct impact on bottom-line results, even as they are often made in an ecosystem that is highly complex.
Video spend is splintered across social video, connected TV (CTV), online video, digital-out-of-home (DOOH), and other emerging formats. Multi-screen, omnichannel advertising strategies are critical to success, but they also come with new challenges.
The average digital video campaign now involves 4-6 different technology platforms, each extracting a toll on both efficiency and transparency.
In CTV environments, this “ad tech tax” from reselling results in publishers receiving 7-8% less revenue than they would through direct relationships , while advertisers pay inflated premiums without improvements in quality or performance.
Fragmentation also creates significant operational challenges:
As programmatic advertising undergoes a fundamental restructuring, brands and agencies must re-evaluate where and how they allocate video investments—finding the right balance of scale and quality.
While resold inventory once offered better connectivity, today it has become a significant industry burden, particularly in CTV. Hidden fees lead to substantial markups, every ad pod runs hundreds of calls in a bloated bid stream, and confusion lets fraudulent traffic thrive.
Weighed down by extreme complexity, the traditional programmatic supply chain—DSP to SSP to intermediary to media owner—is rapidly becoming obsolete.
Recent acquisitions are blurring the lines between buying and selling platforms, ushering in a new reality:
While resold inventory seems attractively priced, these savings come at the cost of quality, transparency, and outcomes. Many investment leaders feel increasingly uncomfortable if their team is not speaking directly to publishers, ad serving companies, and strategic SSPs.
As access to premium inventory becomes more competitive, the video ad server has re-emerged as the most strategic node in the video supply path. Partnerships with companies that control the ad server—rather than merely accessing it through intermediaries— provide significant strategic advantages in terms of inventory access and pricing transparency.
The ad server controls the transaction, determining key auction dynamics such as:
For agency investment leaders, supply path optimization (SPO) has become a strategic imperative rather than merely a technical exercise. Simplified paths to inventory improve not only media efficiencies and brand safety but capabilities, performance, and ad outcomes.
Direct paths to premium video supply creates new advantages like:
The evolution of the video supply chain has profound implications for how investment leaders structure their buying strategies, from access and deal types to cross-channel measurement.
For each video campaign, advertisers need to find the right balance of deal structures. While preferred or guaranteed deals come with premium pricing, it can be economically advantageous for high-value inventory where competition is fierce.
Media buyers should avoid blanket rules when deciding between direct and intermediated access. A strategic framework can help balance efficiency with business priorities and maximize the impact of limited resources.
While direct relationships require more operational overhead, they are worth it for:
A strategic approach segments inventory into tiers based on value and approach:
Tier 1
Strategic direct relationships with premium publishers, media groups, and video ad platforms
Tier 2
Preferred or programmatic guaranteed deals through optimized paths
Tier 3
Efficient open exchange buying with strong verification
Across tiers, investment leaders should prioritize transparency. Ask sellers if they have exclusive right-of-sale for every impression. For curated details, request a list of all sellers included in the Deal ID. These simple steps can uncover hidden reselling arrangements that inflate costs without adding value.
Fragmentation of video across screens creates challenges around measurement and attribution:
Many agencies are shifting back toward media mix modeling (MMM) and incrementality testing. Using these sophisticated methods, media buyers can see actual sales lift from a retailer, or combine cross-platform exposure and engagement data in real-time.
A holistic video measurement model increasingly combines multiple tiers of KPIs:
Channel-specific | Viewability, completion rate, conversions, leads |
---|---|
Cross-channel | Audience match rates, frequency, overlap |
Total ROI | Multi-touch attribution, sales, market share |
To stay ahead of changes in video, media investment leaders need to identify ad platforms that provide a sustainable competitive advantage in access, targeting, and creative formats.
Premium video inventory is a finite resource, and access is only getting more competitive as consumption shifts to streaming environments. Video platforms with direct relationships to publishers and media groups can provide efficient access to a broad range of high-quality inventory across hundreds of top media properties.
To secure the inventory you need, seek out strategic partnerships rather than focusing on purely transactional buys:
As third-party cookies and device IDs face increasing restrictions, advertisers are shifting toward solutions that prioritize privacy and performance.
The most effective video platforms ensure:
Advanced creative formats for video drive higher ad engagement. But these often require direct partnerships with video platforms, as standard intermediaries lack the technical capabilities to support them. Agencies should evaluate partners on:
EX.CO offers the most efficient access point to clean video at scale, while delivering powerful machine learning video technology for every screen.
As a publisher-first video platform, EX.CO maintains direct relationships with the world’s leading media owners, with over 14 billion annual ad impressions—and growing. EX.CO’s proprietary, machine-learning-based ad server technology provides several distinct advantages:
This platform approach enables investment leaders to implement sophisticated video strategies at scale across multiple publishers and streaming media groups, rather than negotiating individual publisher relationships.
Securing priority access to premium video inventory will only get more competitive in the years ahead. Now is the time for media and advertising leaders to take control of their video strategy. By developing a strategic, simplified approach to supply path optimization, investment leaders can:
Investment leaders who develop a sophisticated supply path strategy today will be best positioned to succeed in the increasingly complex video landscape of tomorrow.
Speak with one of our experts to learn how the EX.CO platform can enhance your video investment strategy.