One of the most pressing concerns from Sizmeks bankruptcy comes from SSPs, which must reconsider how they think about risk and credit with their longtime partners.
Brands and agencies often pay DSPs on 90-day or even 120-day cycles. But DSPs pay SSPs between 30 to 60 days. Theres a separate contract between an SSP and a publisher, but often the SSP will front inventory spend before it has money in hand from the buyer.
DSPs shoulder this burden directly because they constantly owe money to inventory suppliers. The Trade Desk took out a $200 million loan in 2017 to preserve liquidity while it bridges inventory payments. MediaMath has raised more than $600 million, including $225 million last year.
But when a DSP defaults on its…
Read the full article at: https://adexchanger.com/online-advertising/sizmeks-bankruptcy-is-changing-how-the-supply-side-manages-dsp-debts/