Does The Trade Desk’s OpenPath row signal a churn in programmatic ecosystem?

Weeks after major agency networks such as WPP and Dentsu stepped back from The Trade Desk’s OpenPath citing transparency concerns, the development is increasingly being viewed by industry observers as part of a broader churn within the global programmatic advertising ecosystem.

Read: WPP, dentsu step back from The Trade Desk’s OpenPath over transparency concerns

Launched in 2022, OpenPath was positioned as a more direct programmatic pipeline connecting advertisers with publishers — including premium media houses and high-demand connected TV (CTV) inventory — by allowing publishers to plug directly into The Trade Desk’s (TTD) demand without traditional intermediaries. 

While the product is free for advertisers and agencies, publishers typically pay a 5% fee linked to a share of advertiser spend. An agency head said, “A comparison between OpenPath transactions and direct publisher deals had indicated premiums of roughly 10–15% in certain cases, prompting a reassessment of spending levels.”

Industry executives say the debate is not necessarily about pricing alone. The concern, however, is the lack of clarity around the final cost structure.

“Calculating the final cost on the platform can be complex as pricing is influenced by multiple factors, including publisher floor prices, market demand and platform fees,” another media buyer said. 

Following internal reviews of the product’s overall cost structure for clients, several agencies across different markets are understood to have paused or reduced investment routed through the platform, which earlier accounted for roughly 10–20% of their spending.

Sajal Gupta, CEO of Kioas Marketing, said the development highlights growing scrutiny around how costs move through the ecosystem. “Programmatic transactions involve multiple technology layers, and advertisers today are far more focused on understanding where value is being created versus where additional fees may be introduced,” he said.

No additional fee, we are transparent: Claims TTD

Responding to e4m queries, Rahul Kapoor, VP – Partnerships, The Trade Desk, denies the allegations of any hidden cost. “OpenPath is one of several supply chain initiatives The Trade Desk has developed to improve transparency, value and choice in programmatic buying. OpenPath is offered at cost to the ecosystem. OpenPath itself does not introduce additional fees into the transaction. By reducing intermediary hops and shortening the distance between buyer and seller, it helps create a cleaner supply path that can minimise duplication, signal loss and unnecessary costs.”

“The final price advertisers see for campaigns is ultimately determined by many factors including auction dynamics and a publisher’s pricing strategy. What we’ve consistently seen is that a more direct connection between publishers and demand can improve efficiency and yield. For example, after integrating OpenPath, Guardian Australia saw a 91% increase in programmatic revenue from The Trade Desk, and internationally The New York Post grew programmatic revenue by 97%,” TTD claimed. 

When asked to what extent do elements such as publisher floor prices, auction dynamics or other platform mechanisms influence the overall pricing that advertisers see on OpenPath, TTD says, “OpenPath is a direct integration between The Trade Desk and a publisher’s ad server, it does not replace the publisher’s auction or override publisher controls. Advertisers still bid into publisher-run auctions, and clearing prices are determined by competition among advertisers as well as publisher-defined rules such as floor prices.”

Deeper structural tensions

The pushback by agencies reflects deeper structural tensions between agencies, ad-tech platforms and publishers as programmatic advertising matures, executives tracking the issue say. At the centre of the debate lies the evolving balance of power across the digital advertising supply chain.

The CEO of a leading Indian digital agency explains, “Programmatic advertising was originally designed to create additional layers of cost within the ecosystem. Platforms often buy inventory at relatively low prices and then add multiple layers of fees before it reaches the advertiser. That model has broadly shaped how many programmatic platforms operate today—from large tech players to independent platforms.”

She added that agencies themselves have historically created trading units that add another margin layer on top of programmatic inventory. “So some of the current debate around platforms like The Trade Desk is also about who controls that layer of the value chain,” she said.

Sayak Mukherjee, founder of Brandwizz and Creator Cult, says, “This conversation is less about one platform or initiative and more about the evolving balance of control in the digital media ecosystem — between ad-tech platforms, agencies and publishers. As programmatic continues to mature, greater transparency and clearly defined roles across the supply chain will be essential for long-term trust and collaboration,” he said.

Industry executives note that over the past few years, large ad-tech platforms have been building more direct connections between advertisers and publishers to streamline transactions, reduce intermediary layers and improve efficiency. Initiatives such as OpenPath, Mediasmart Affle, CleverTap are part of this broader push.

Mukherjee noted, “OpenPath has gained traction within the publisher community and connected TV ecosystem. However, for large agency networks managing billions of dollars in client media investments, visibility into fee structures, inventory routing and auction dynamics remains critical.”

Another executive noted that the economics of programmatic buying also sit at the centre of the debate. “Typically, a DSP retains roughly 4.5% to 5% of ad spend as its technology fee, with the remainder flowing toward publisher inventory after passing through supply-side mechanisms,” the executive said.

As ad-tech platforms build more direct publisher integrations, agencies worry that changes in routing or auction structures could influence how inventory is accessed and priced.

Precursor to a shift in agency models?

Some industry insiders believe the current dispute could signal broader changes in the business models of large agency networks.

“The business model of large agencies is under serious pressure,” said a senior ad-tech executive on condition of anonymity. “Most holding companies are grappling with structural changes in programmatic. What you’re seeing now is part of a larger strategic debate, and there will likely be more pushback with technology partners going forward.”

Others see the situation as part of a natural rebalancing within the ecosystem.

“Ad-tech platforms want closer publisher relationships, agencies want transparency and control, and publishers want higher yield. Those three interests don’t always align,” another industry executive noted.

For now, industry watchers say the OpenPath debate is unlikely to slow the momentum of programmatic advertising. However, it does highlight an important inflection point for the industry.