AdTechGod Pod Episode 87 Summary: SPO, AI, and the End of the Open Exchange with Taylor Simons

Episode Details:

• Title: Ep. 87 SPO, AI, and the End of the Open Exchange with Taylor Simons
• Release Date: July 8, 2025
• Host: AdTechGod
• Guest: Taylor Simons, Founder and Principal Consultant at TCHT, Advisor to Audigent, Former MediaMath Employee

1. Introduction and Guest Background

The episode kicks off with AdTechGod introducing Taylor Simons, highlighting his extensive experience in the ad tech industry. Taylor brings a wealth of knowledge from his nine-year tenure at MediaMath and his entrepreneurial ventures, including starting TCHT.

Notable Quote:

• AdTechGod ([01:14]): "Today we're joined by Taylor Simons, founder and principal consultant at TCHT and advisor to Audigent and others."
• Taylor Simons ([01:59]): "I actually have a very different story [than most guests]. I very intentionally got into ad tech."

2. Taylor Simons’ Journey into AdTech

Taylor shares his unique path into the ad tech space, contrasting with many who entered the field by chance. Starting at Universal Music Group, he experienced the constraints of a major label before transitioning to startups like TuneCore and Order Groove, both of which he helped scale successfully.

Key Points:

• Intentional move into ad tech driven by observing peers' success and the lucrative opportunities in the field.
• Cold-applied to MediaMath for a director position, showcasing his proactive approach.

Notable Quote:

• Taylor Simons ([03:12]): "Instead of the vast majority just kind of showing up in ad tech, I very intentionally got into ad tech."

3. Experience at MediaMath

Taylor recounts his time at MediaMath, describing the company’s rapid growth and the subsequent challenges that led to its bankruptcy. He reflects on the emotional toll of the company's downfall and the lessons learned about resilience and turning failures into successes.

Key Points:

• Joined MediaMath in 2014 when the company had over 600 employees.
• Experienced the company's vision of becoming the next tech giant, which did not materialize.
• Faced the heartbreak of MediaMath’s bankruptcy after nine years.

Notable Quote:

• Taylor Simons ([06:00]): "It was excruciating. [...] you can turn a failure into great success."

4. Transition to Consultancy and Current Industry Trends

Post-MediaMath, Taylor launched TCHT, a consultancy helping clients navigate the evolving ad tech landscape. He discusses the shift in his perspective, moving from a large organization to working independently with diverse clients.

Key Points:

• Enjoying his role as a consultant and engaging with multiple clients.
• Identifies a significant mindset shift from being a W2 employee to an independent consultant.
• Observes remaining areas of improvement in DSPs and SSPs, providing ample opportunities for his consultancy.

Notable Quote:

• Taylor Simons ([07:31]): "There's a lot of green space to work with my clients. [...] areas where we can make what we have today work a lot better."

5. SSPs vs. DSPs: Industry Dynamics

A central discussion revolves around the surprising revelation that there are more Supply-Side Platforms (SSPs) than Demand-Side Platforms (DSPs) in the market. Taylor elaborates on the vast number of SSPs and the challenges they pose to the ecosystem.

Key Points:

• Misconception: Host initially believed DSPs outnumbered SSPs.
• Reality: Over 200 SSPs exist compared to significantly fewer DSPs.
• Implications: A long tail of SSPs leads to bid duplication and inefficiencies.

Notable Quote:

• Taylor Simons ([10:55]): "There is a massive, massive long tail of SSPs. [...] It's very hard for a DSP to navigate that just for themselves."

6. Impact of Bid Duplication and SSP Proliferation

Taylor delves into how publishers employ numerous SSPs to maximize bid opportunities, resulting in bid duplication. This practice inflates bid volume, creating challenges for DSPs in managing Quality Per Second (QPS) and overall system efficiency.

Key Points:

• Publishers working with an average of 30+ SSPs engage in bid duplication to secure higher bids.
• Negative impact on DSPs includes overwhelmed systems and reduced efficiency.
• Suggests consolidation of SSP partnerships as a solution.

Notable Quote:

• Taylor Simons ([12:27]): "Publishers are gaming DSP bidders to try and get as many bids from them at the highest price possible."

7. Strategies for Publishers and Advertisers

The conversation shifts to strategies that publishers and advertisers can adopt to mitigate the issues caused by SSP proliferation and bid duplication. Taylor emphasizes the importance of consolidating SSP partnerships and leveraging Supply Path Optimization (SPO) to enhance transparency and efficiency.

Key Points:

• Supply Path Optimization (SPO): Essential for reducing the number of SSPs and focusing on high-quality partnerships.
• Curation: Publishers should curate their inventory to ensure quality and reduce reliance on numerous SSPs.
• Collaboration: Agencies, brands, and DSPs must align their incentives to foster a healthier ecosystem.

Notable Quote:

• Taylor Simons ([13:23]): "You need to start to traffic, shape the inventory for yourself."

8. The Future of Open Exchange and AI Integration

Taylor shares his skepticism about the continued relevance of Open Exchange, advocating for curated supply paths and highlighting the potential of AI in transforming programmatic advertising.

Key Points:

• Decline of Open Exchange: Believes SPO and curation will reduce dependency on Open Exchange.
• AI as a Game-Changer: Envisions AI agents creating new programmatic channels and inventory, similar to the impact of CTV.
• Inventory Shaping: AI can enable more precise inventory targeting and campaign optimization.

Notable Quote:

• Taylor Simons ([16:14]): "Hard to reach audiences are best done by supply side, you know, audience targeting and deal based buys."

9. Addressing Misaligned Incentives

Taylor identifies the fundamental misalignment between DSPs and SSPs, which hampers collaboration and optimization. He advocates for shared performance metrics to align goals and enhance trust within the ecosystem.

Key Points:

• Inherent Dissonance: SSPs focus on maximizing bids without visibility into campaign KPIs.
• Need for Transparency: Sharing performance data can lead to better optimization and trust.
• Industry Resistance: Many stakeholders are resistant to changing traditional practices, creating barriers to improvement.

Notable Quote:

• Taylor Simons ([19:22]): "The supply side is completely blind to what the campaign KPI is if they're performing, if they're not performing."

10. The Role of AI in AdTech Jobs and Innovation

The discussion concludes with thoughts on AI's impact on the ad tech workforce and its potential to drive innovation. Taylor remains optimistic about AI’s ability to create new opportunities and transform existing processes without necessarily eliminating jobs.

Key Points:

• AI as an Assistant: Likely to optimize roles by enhancing efficiency rather than outright replacing jobs.
• New Channels and Formats: AI can introduce novel programmatic channels, akin to the rise of CTV.
• Future Prospects: Encourages embracing AI to stay at the forefront of ad tech innovation.

Notable Quote:

• Taylor Simons ([26:35]): "I firmly believe that we will creating a new programmatic channel and inventory and ad type with AI agent inventory sooner than maybe any of us think."

11. Conclusion

AdTechGod wraps up the episode by thanking Taylor for his insights and contributions to the ad tech community. The conversation highlights the ongoing evolution of programmatic advertising, the critical role of SPO and curation, and the transformative potential of AI in shaping the future of the industry.

Closing Remarks:

• AdTechGod ([26:35]): "Thanks for tuning in to another episode of the AdTech Godpod."

Key Takeaways:

• SSPs Outnumber DSPs: Contrary to common belief, there are significantly more SSPs, leading to bid duplication and inefficiencies.
• Supply Path Optimization (SPO): Essential for streamlining ad tech processes, reducing reliance on numerous SSPs, and improving transparency.
• AI’s Potential: poised to revolutionize programmatic advertising by introducing new channels and enhancing optimization capabilities.
• Misaligned Incentives: A fundamental issue that requires shared performance metrics and transparency to foster a healthier ad tech ecosystem.
• Industry Collaboration: Crucial for overcoming challenges related to SSP proliferation, bid duplication, and aligning goals between DSPs and SSPs.

This episode offers a comprehensive exploration of current challenges and future directions in the ad tech industry, providing valuable insights for professionals seeking to navigate and innovate within this dynamic field.