"Last month, The Trade Desk revealed that Kokai, its new, machine learning-based buying platform, would categorize all supply-side platforms as "resellers" and thus disfavor their supply. SSPs are, unsurprisingly, not happy with this arrangement."
"Casale maintains that "the only part of this market that gets to decide whether or not a vendor is a reseller is the customer.""
"Nobody is immune from getting disintermediated, though. Even The Trade Desk, having established direct publisher connections via OpenPath and a single owned pipeline to inventory, may someday fall into the category of "ad network.""
"When Brian Lesser, now the CEO of WPP Media, was attempting to build AT&T's media and advertising business after its acquisition of AppNexus, his rationale was that he was building a "community garden" mainly for streaming and online video ads. His thesis is that other telcos, broadcasters and streamers would be okay allocating their ad inventory to a frenemy like AT&T if it meant they could earn more per ad."
Kokai, a machine learning-based buying platform from The Trade Desk, will classify all supply-side platforms as resellers and deprioritize their inventory, prompting pushback from SSPs. Industry figures argue that publishers, not intermediaries or buyers, should decide reseller status because publishers control inventory relationships. Advertisers view intermediaries as additional hops, while exchanges and SSPs seek recognition as authorized sellers. Disintermediation threatens all players, including The Trade Desk despite direct publisher connections via OpenPath. Past attempts to create shared inventory "community gardens" faced data-sharing and trust barriers, and Amazon DSP now aims to simplify TV planning and buying for advertisers.
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