---
title: "Direct Path Optimization: How Agencies Gain Strategic Advantage in Video Advertising"
description: Learn how advertising agency leaders can maximize their media investments across online video, CTV, and DOOH while demonstrating value beyond efficiency.
image: https://blog.ex.co/hubfs/images/blog/article/EXCO_BlogAssets_DemandGuide_BlogHeader.jpg
---

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# Direct Path Optimization: How Agencies Gain Strategic Advantage in Video Advertising

 September 04, 2025 - by [Tammy Blythe Goodman](https://blog.ex.co/author/tammy-blythe-goodman)

![Multiscreen advertising ](https://blog.ex.co/hubfs/images/blog/article/EXCO_BlogAssets_DemandGuide_BlogHeader.jpg "Multiscreen advertising ")

When every [agency](https://ex.co/advertisers/) can access the same video [inventory](https://content.ex.co/glossary#inventory) through the same intermediaries, how do you create meaningful differentiation for your clients? 

This question is driving a fundamental shift in how media investment leaders approach video supply paths. As fragmentation increases across [online video](https://content.ex.co/glossary#olv) ([OLV](https://content.ex.co/glossary#olv)), [connected TV](https://content.ex.co/glossary#ctv) ([CTV](https://content.ex.co/glossary#ctv)), and digital out-of-home ([DOOH](https://content.ex.co/glossary#dooh)), who you buy from matters just as much as what you buy—and those with direct paths to premium [inventory](https://content.ex.co/glossary#inventory) gain advantages their competitors can't match.

Despite economic headwinds, [total U.S. digital video ad spend is projected to reach $72B in 2025](https://www.iab.com/insights/video-ad-spend-report-2025/). Often comprising the biggest line-item in any media budget, agency leaders face mounting pressure to maximize these investments and demonstrate value beyond efficiency. Let’s take a closer look.

## The great convergence: How agency [trading desks](https://content.ex.co/glossary#trading-desk) are adapting

Programmatic is undergoing a fundamental reset in how [ad tech](https://content.ex.co/glossary#ad-tech) partners transact. Recent industry acquisitions are blurring the lines between buying and selling platforms, ushering in a new era of [supply path optimization](https://blog.ex.co/advertising/what-is-supply-path-optimization) ([SPO](https://content.ex.co/glossary#spo)). Agency [trading desks](https://content.ex.co/glossary#trading-desk) are also getting fed up with the risk and fraud of resold [inventory](https://content.ex.co/glossary#inventory), which now comprises [nearly 30% of mobile app traffic and 18% of the CTV bid stream](https://www.exchangewire.com/blog/2025/08/28/pixalate-releases-q2-2025-global-invalid-traffic-ivt-ad-fraud-benchmarks-for-web-mobile-apps-and-ctv/). As much as $.40 of every $1 in [spend](https://content.ex.co/glossary#spend) toward resellers goes to mysterious middlemen. 

Rather than manage relationships with dozens of [SSPs](https://content.ex.co/glossary#ssp)—many accessing the same inventory—top agencies are prioritizing fewer, more integrated platforms that offer direct paths to [publishers](https://ex.co/publishers/) and media owners. Leaders are asking deeper questions like:

- Which partners provide truly unique value that can't be accessed elsewhere?
- Which relationships deliver the best balance of scale, quality, and efficiency?
- How can direct relationships support future-proof targeting as [privacy](https://content.ex.co/glossary#privacy) regulations evolve?

## The [ad server](https://content.ex.co/glossary#ad-server) advantage: Why direct control points matter

If [SPO](https://content.ex.co/glossary#spo) was originally a technical exercise to eliminate bad actors and the "[ad tech](https://content.ex.co/glossary#ad-tech) tax,” it now helps agencies drive strategic advantages – by establishing more direct relationships with platforms that control the [ad server](https://ex.co/ad-server/), rather than merely accessing it through intermediaries. Here are a few other advantages:

- ### Priority access to premium [inventory](https://content.ex.co/glossary#inventory)

As competition for premium video placements intensifies, direct relationships ensure agencies can access the most valuable [impressions](https://content.ex.co/glossary#impression) first. This is crucial in high-demand environments like [CTV](https://content.ex.co/glossary#ctv), where inventory scarcity drives up prices for those without preferential access.

- ### Enhanced data and targeting capabilities

Direct supply paths preserve critical signals that often get lost or diluted through lengthy supply chains. Agency [trading desks](https://content.ex.co/glossary#trading-desk) with direct relationships gain access to richer contextual data, first-party audience signals, and placement-specific attributes that drive targeting precision.

- ### Greater operational control

Direct paths give agencies more control over how they execute clients' [campaigns](https://content.ex.co/glossary#campaign), from [creative](https://content.ex.co/glossary#creative) rendering to frequency management. This control translates to improved [brand safety](https://content.ex.co/glossary#brand-safety), better [user experiences](https://content.ex.co/glossary#ux), and more predictable campaign outcomes.

- ### Improved working media efficiency

By going direct, agencies eliminate redundant fees and intermediaries, allowing more client dollars to work directly in-market and scale across quality inventory without prohibitive [CPM](https://content.ex.co/glossary#cpm) price inflation. These [optimized](https://content.ex.co/glossary#optimization) paths deliver measurable improvements across key metrics, from enhanced [viewability](https://content.ex.co/glossary#viewability) and [completion rates](https://content.ex.co/glossary#completion-rate) to stronger engagement and [conversion](https://content.ex.co/glossary#conversion) outcomes.

## [![Download guide](https://no-cache.hubspot.com/cta/default/6184888/79a8f17a-853b-457f-8d25-6ca5a7f4e929.png)](https://cta-redirect.hubspot.com/cta/redirect/6184888/79a8f17a-853b-457f-8d25-6ca5a7f4e929)

## Optimizing deal types by [campaign](https://content.ex.co/glossary#campaign) objective

For each video campaign, [advertisers](https://content.ex.co/glossary#advertiser) must also find the right balance of deal structures. While preferred agreements with direct-path partners may come with premium pricing, it can be economically advantageous for high-value inventory where competition is fierce.

The most sophisticated agencies are aligning deal structures with specific campaign objectives, recognizing that different goals require different approaches. For example: 

- **[Brand awareness](https://content.ex.co/glossary#brand-awareness) [campaigns](https://content.ex.co/glossary#campaign)**: Prioritizing premium placements through [preferred deals](https://content.ex.co/glossary#preferred-deal) and [programmatic guaranteed](https://content.ex.co/glossary#pg)
- **Performance [campaigns](https://content.ex.co/glossary#campaign)**: Utilizing [private marketplace](https://content.ex.co/glossary#pmp) deals with advanced audience targeting
- **[Reach](https://content.ex.co/glossary#reach) extension**: Supplementing with [open exchange](https://content.ex.co/glossary#open-exchange) buying guided by strong [brand safety](https://content.ex.co/glossary#brand-safety) protocols

Embracing a tiered approach to buying video helps agencies deliver better outcomes while maintaining cost efficiency—a critical differentiator in competitive pitches.

## The path forward for agency investment leaders

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](https://ex.co/advertisers/) to take control of their video strategy. 

The strategic advantages of direct path [optimization](https://content.ex.co/glossary#optimization) translate into measurable benefits that go far beyond traditional efficiency metrics, enabling agencies to:

- Deliver superior outcomes across the full funnel
- Improve working media efficiency and eliminate fees
- Build proprietary access to premium video inventory
- Avoid the “too good to be true” risks of resold inventory
- Enable advanced [creative](https://content.ex.co/glossary#creative) and [privacy](https://content.ex.co/glossary#privacy)-safe data capabilities
- Demonstrate clear, measurable value to client CMOs and procurement teams

Investment leaders who develop a sophisticated supply path strategy today will be best positioned to succeed in the increasingly complex video landscape of tomorrow.

***Is your video strategy built for what's next? ***

*Download our industry guide, "*[*Mastering the Multiscreen Mix: Smarter Buying Strategies for Agency Decision Makers*](https://content.ex.co/multiscreen)*” for a detailed framework of tiered video strategies, specific questions to ask supply partners, future-proof targeting approaches, and other ways top agencies build sustainable advantages for their clients.*

[![Download guide](https://no-cache.hubspot.com/cta/default/6184888/79a8f17a-853b-457f-8d25-6ca5a7f4e929.png)](https://cta-redirect.hubspot.com/cta/redirect/6184888/79a8f17a-853b-457f-8d25-6ca5a7f4e929)

 

### Speak to an expert

## Recent posts

## About Tammy Blythe Goodman

Tammy Blythe Goodman is VP, Brand Marketing & Communications at EX.CO. Prior to joining EX․CO in 2022, Tammy managed global communications at Taboola, Innovid, and SpotX, respectively. She has an MFA in Film from Columbia University and a BA in Communications and Literature from American University. Tammy lives in New York City and is a proud rescue dog owner and passionate pluviophile.

[More posts by Tammy Blythe Goodman](https://blog.ex.co/author/tammy-blythe-goodman)

## Topics

[Advertising](https://blog.ex.co/tag/advertising), [Media Buying](https://blog.ex.co/tag/media-buying), [Digital Advertising](https://blog.ex.co/tag/digital-advertising), [Online Video](https://blog.ex.co/tag/online-video), [CTV](https://blog.ex.co/tag/ctv), [CTV Advertising](https://blog.ex.co/tag/ctv-advertising),

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