WPP, Dentsu pull away from The Trade Desk’s OpenPath amid transparency concerns

New Delhi: WPP and Dentsu have pulled back from The Trade Desk’s OpenPath, a direct-to-publisher buying initiative launched in 2022, raising fresh questions about transparency and control in the digital ad supply chain.

OpenPath was positioned as a way for advertisers to buy inventory directly from publishers, bypassing traditional supply-side platforms. 

The Trade Desk said the move would reduce complexity, improve performance and create a cleaner alternative to closed ecosystems such as Google.

However, some of the world’s largest agency groups are now stepping away from the product.

According to a report by AdWeek, Dentsu has disabled OpenPath after using it since launch, according to industry sources cited in the report. WPP also moved away from the product soon after its introduction, with concerns centred on transparency and overlap with agency services.

At the heart of the unease is how spend is routed and how much visibility advertisers have into pricing.

An executive at a global brand that spends heavily on The Trade Desk said around 80% of its spend is currently flowing through OpenPath, compared with 20% through open exchanges, AdWeek reported The executive added that the company is reviewing its investments, but shifting demand-side platforms is complex given the scale of campaigns across display, connected TV and audio.

OpenPath creates a direct connection between The Trade Desk and publishers, including A+E Networks and Encyclopedia Britannica, bypassing SSPs. While this may shorten the supply chain, some agencies argue it makes it harder to benchmark performance and fees against other partners.

Responding to the concerns, Ian Colley, Chief Marketing Officer and EVP at The Trade Desk, said the criticism misunderstands how OpenPath works.

“TTD doesn’t push spend to OpenPath. It’s not a marketplace or curated inventory. OpenPath is simply a supply path option to ad impressions an advertiser would already be targeting. OpenPath is offered at cost to the ecosystem. We’ve been clear about that. There are no hidden fees beyond that. If OpenPath is selected by an advertiser, it’s simply because it’s the cleanest, most cost-efficient path,” Colley said, replying to a LinkedIn post shared by AdWeek. 

He added that OpenPath is one of several supply chain initiatives developed with brands and agencies to drive transparency, value and choice.

“OpenPath is just one option that buyers have en route to any given impression, and spend flowing through OpenPath has been growing steadily over the last year or so. The primary reason that OpenPath has been so successful is that it is the clearest, most cost-efficient path with the highest signal. For many buyers, this has become a key focus area of our supply chain collaboration, and OpenPath has become a critical beacon of value,” Colley said.

Despite the defence, the reported pullbacks point to growing tension between agencies and the ad tech firm.

Some agency executives believe the company is moving deeper into the supply side of advertising, an area traditionally managed through separate supply-side platforms. 

While The Trade Desk has said it is not entering that business, the increasing share of spend flowing through OpenPath has raised concerns about governance and control.