Supply path optimization (SPO) has become industry shorthand for aggressive fee-cutting and stripping out intermediaries, but according to Tom Wolfe, Senior Vice President of Programmatic Strategy and Partnerships at Locality, that's only half the equation .

In this episode of AdExchanger's Inside the Stack, Wolfe explains why a shorter path is better—and even better when premium inventory sits on the other side. While reducing the tech tax matters, a hyper-focus on cutting hops often ignores signal degradation and data loss across fragmented systems . Wolfe argues that buyers need to pair SPO with "data path optimization" to ensure rich signals survive the trip and actually reach a destination worth going .

Key topics covered in this episode include:

• Why local advertising requires a bottom-up strategy, and how consumer behavior varies drastically between the dense, brick-lined streets of Philadelphia and the dirt roads of Dothan, Alabama .

• The hidden costs of fragmented supply, including data loss and signal degradation as information moves through multiple systems .

• Why AI's true competitive advantage lies in the quality of data feeding the models, comparing today's AI hype to everyone suddenly gaining access to Microsoft Excel in the 90s .

• Why Wolfe says the current state of the converging TV ecosystem is about maturing, recovering, and collaboration.