Supply Side Platform (SSP)

Key highlights

• A supply side platform (SSP) is an advertising technology platform used by publishers to automate the selling of ad inventory on their websites and apps.
• SSPs help publishers optimize their ad revenue by connecting their inventory to multiple ad exchanges and demand-side platforms allowing them to reach a larger pool of potential buyers.
• SSPs offer features like real-time bidding, ad network optimization, frequency capping, and relevancy filtering to help publishers maximize their revenue and control over their ad inventory.
• Using an SSP, publishers can benefit from granular reporting and analytics, dynamic price floor management, and simplified ad selling processes.
• Popular SSP companies in the programmatic ecosystem include Google Ad Manager, OpenX, Magnite, and PubMatic.

Introduction to supply-side platforms

Supply-side platforms have become an integral part of the digital advertising landscape. As the advertising industry continues to shift towards programmatic advertising, publishers are leveraging SSPs to optimize their ad revenue and streamline their ad-selling process. In this post, we will take a closer look at what exactly a supply-side platform is, how it works, and the key benefits it offers to publishers in the world of adtech.

SSPs, also known as sell-side platforms, are advertising technology platforms used by publishers to automate the selling of their ad inventory. They act as intermediaries between publishers and advertisers, facilitating the buying and selling of digital ad space. By utilizing SSPs, publishers can connect their inventory to multiple ad exchanges and demand-side platforms (DSPs), expanding their reach to a larger pool of potential buyers.

Supply side platforms play a critical role in programmatic advertising, a digital advertising method that uses automated systems and algorithms to buy and sell ad inventory. SSPs enable publishers to optimize their ad revenue by connecting their inventory to multiple ad exchanges and DSPs. These platforms act as technology partners for publishers, providing them with the tools and infrastructure to efficiently manage and sell their ad inventory. 

By leveraging SSPs, publishers can take advantage of real-time bidding, ad exchange integration, and advanced targeting capabilities to maximize their revenue potential and find the best match for each advertising space.

Definition and purpose of SSPs

A supply side platform, also known as a sell-side platform or SSP, is an essential component of the ad tech ecosystem. It is an advertising technology platform used by mobile app publishers to manage and sell their ad inventory. Ad inventory refers to the available slots or spaces on a publisher’s website or app where advertisements can be displayed. 

SSPs provide publishers with a centralized platform to control and optimize the sale of their ad inventory to many advertisers.

The purpose of SSPs is to help publishers maximize their ad revenue by connecting their ad inventory to multiple demand sources, such as ad exchanges and demand-side platforms. By doing so, SSPs enable publishers to reach a larger pool of potential buyers and increase the competition for their ad inventory, ultimately driving higher prices and maximizing revenue. 

SSPs also provide publishers with tools and features to manage and optimize their ad sales process, including real-time bidding, ad network optimization, and inventory management. Additionally, SSPs allow publishers to have control over who advertises on their properties by indicating which advertisers or advertisement categories (IAB categories) they will allow, ensuring that the brands that advertise on their properties meet certain standards.

The evolution of SSPs in digital advertising

Supply side platforms have evolved alongside the digital advertising industry, responding to the changing needs and demands of publishers and advertisers. In the early days of online advertising, publishers relied on manual sales processes and direct negotiations with advertisers to sell their ad inventory. However, as the volume of online advertising increased and programmatic advertising technology emerged, publishers needed a more efficient and scalable way to manage and sell their ad inventory through display ads.

This led to the development of SSPs, which provided publishers with a technology platform to automate the selling of their ad inventory. SSPs empowered publishers to reach a larger pool of potential buyers by connecting their inventory to multiple ad exchanges and demand-side platforms. This shift towards programmatic advertising and the adoption of SSPs revolutionized the advertising industry, making the buying and selling of ad inventory more efficient, transparent, and data-driven. Today, SSPs are an essential component of the digital advertising ecosystem, enabling publishers to optimize their ad revenue and streamline their ad-selling processes with the help of human sales teams.

Supply side platforms play a crucial role in programmatic advertising, which uses automated systems and algorithms to buy and sell ad inventory. SSPs enable publishers to connect their ad inventory to multiple ad exchanges and demand-side platforms simultaneously, allowing them to reach a larger pool of potential buyers and maximize their revenue by setting the bidding range.

One of the key functions of SSPs is real-time bidding, a process where ad buyers place bids in real-time for available ad space. When a user visits a publisher’s website or app, the SSP triggers an auction for the available ad space and invites ad buyers to submit their bids. The ad buyers compete with each other in real-time, with the highest bidder winning the auction. This process ensures that publishers obtain the highest possible price for their ad inventory.

SSPs also enable publishers to target specific audiences and optimize their ad space for maximum effectiveness. By leveraging programmatic advertising technology and grouping sets of aligned publishers, SSPs provide publishers with the tools and capabilities to deliver targeted ads to specific segments of their audience, increasing the relevance and impact of their advertising campaigns.

The process of real-time bidding (RTB)

Real-time bidding is a key component of the programmatic advertising ecosystem, facilitated by supply side platforms. RTB enables publishers to sell their ad inventory in real-time auctions, with ad buyers bidding for available ad space.

When a user visits a website or app, the SSP triggers an auction for the available ad space. Ad buyers, which can include advertisers, agencies, or trading desks, participate in the auction by submitting their bids. Each bid specifies the maximum price the ad buyer is willing to pay for the ad space. The auction process is automated and happens in real-time, allowing advertisers to reach their target audience with precision.

During the auction, the SSP evaluates the bids and selects the highest bidder as the winner, ensuring that publishers obtain the highest possible price for their ad inventory through real-time bidding. The winning bidder’s ad is then displayed in the available ad space on the publisher’s website or app. This process of real-time bidding allows the SSP to define the highest price for an ad slot among the bids offered by ad buyers, making them a valuable advocate for publishers in terms of inventory monetization.

Role of ad exchanges and DSPs

Supply side platforms work in conjunction with ad exchanges and demand-side platforms to facilitate the buying and selling of ad inventory. Ad exchanges, similar to an eCommerce marketplace like Amazon, act as marketplaces where publishers can make their ad inventory available for purchase, while DSPs enable ad buyers to manage their ad campaigns and bid on ad inventory.

SSPs connect publishers to ad exchanges, providing them with the infrastructure to monetize their ad inventory. By integrating with multiple ad exchanges, SSPs give publishers access to a wide range of demand sources, including ad networks, DSPs, and large advertisers. Ad exchanges serve as intermediaries between SSPs and ad buyers, enabling publishers to reach potential buyers and maximize the value of their ad inventory.

DSPs, on the other hand, are used by ad buyers to manage their ad campaigns and bid on ad inventory. DSPs provide advertisers with the tools and capabilities to target specific audiences, optimize their ad spend, and measure the performance of their campaigns. By integrating with SSPs, DSPs gain access to a diverse range of ad inventory, allowing them to reach their target audience effectively through the use of audience data.

Supply side platforms offer several key benefits for publishers, enabling them to optimize their ad revenue and streamline their ad-selling processes.

One of the main benefits of using SSPs is the ability to maximize ad revenue. By connecting their ad inventory to multiple ad exchanges and demand-side platforms, publishers can reach a larger pool of potential buyers and increase the competition for their ad inventory. This competition drives higher prices and ensures that publishers receive the maximum revenue for their ad space.

SSPs also provide publishers with sophisticated tools and features for managing and selling their ad inventory. These platforms offer granular reporting and analytics, allowing publishers to gain insights into the performance of their ad inventory and make data-driven decisions to optimize their revenue. Additionally, SSPs streamline the ad selling process, automating tasks that were previously done manually and saving publishers time and resources.

Maximizing ad revenue through dynamic pricing

One of the key benefits of using a supply side platform for publishers is the ability to maximize their ad revenue through dynamic pricing. Dynamic pricing allows publishers to set flexible rates for their ad inventory based on factors such as demand, audience, and ad format. This pricing model ensures that publishers can achieve the highest possible revenue for their ad space.

Here are some key points about maximizing ad revenue through dynamic pricing:

• Flexible pricing: SSPs allow publishers to set different rates for their ad inventory based on factors such as ad format, target audience, and demand.
• Real-time optimization: SSPs use real-time data and algorithms to optimize pricing based on current market conditions and demand.
• Hard price floors: SSPs enable publishers to set minimum price thresholds for their ad inventory, ensuring that inventory is not sold below a certain price.
• Competitive bidding: SSPs facilitate real-time bidding for ad space, allowing multiple advertisers to compete for the highest bid.

By leveraging dynamic pricing, publishers can ensure that they are maximizing their ad revenue by setting the most competitive rates for their ad inventory.

Streamlining the ad-selling process

Supply side platforms streamline the ad-selling process for publishers by providing a technology platform that automates and simplifies the selling of their ad inventory.

Here are some key points about how SSPs streamline the ad-selling process:

• Automation: SSPs eliminate the need for manual ad placement and negotiation by automating the selling of ad inventory.
• Efficiency: SSPs streamline the entire ad-selling process, allowing publishers to reach a larger pool of potential buyers and maximize their revenue without dedicating extensive resources to the process.
• Inventory management: SSPs provide publishers with tools to effectively manage their ad inventory, including setting pricing, targeting specific audiences, and blocking certain types of ads.
• Real-time analytics: SSPs offer robust reporting and analytics capabilities allowing publishers to gain insights into the performance of their ad inventory and make data-driven decisions to optimize their revenue.

By leveraging SSPs, publishers can streamline their ad-selling processes, save time and resources, and maximize their revenue potential.

Expanding reach to more advertisers

Supply side platforms enable publishers to expand their reach to a larger pool of potential buyers, allowing them to connect with more advertisers and maximize their revenue.

Here are some key points about how SSPs help publishers expand their reach:

• Multiple demand sources: SSPs connect publishers to multiple ad exchanges, ad networks, and demand-side platforms, providing them with access to a diverse range of potential buyers.
• Increased competition: By opening up impressions to as many potential buyers as possible, SSPs create a competitive bidding environment, driving up prices and ensuring that publishers receive the maximum revenue for their ad space.
• Direct access: SSPs enable publishers to establish direct relationships with advertisers, bypassing intermediaries and increasing their control over their ad inventory.

By using SSPs, publishers can expand their reach to more potential advertisers, increase competition for their ad space, and ultimately maximize their ad revenue.

Supply side platforms offer a range of core features that enable publishers to effectively manage and sell their ad inventory.

Here are some key features of an SSP:

• Ad inventory management: SSPs provide publishers with tools and capabilities to manage and optimize their ad inventory, including setting pricing, targeting specific audiences, and blocking certain types of ads.
• User interface: SSPs offer intuitive user interfaces that allow publishers to easily navigate and manage their ad inventory.
• Analytics and reporting: SSPs provide robust reporting and analytics capabilities, allowing publishers to gain insights into the performance of their ad inventory and make data-driven decisions to optimize revenue.

These core features of SSPs enable publishers to efficiently manage their ad inventory, optimize their revenue, and streamline their ad-selling processes.

Integration with multiple ad exchanges

Supply side platforms integrate with multiple ad exchanges, providing publishers with access to a wide range of potential buyers and maximizing their revenue potential.

Here are some key points about the integration of SSPs with multiple ad exchanges:

• Expanded reach: SSPs connect publishers to a diverse range of ad exchanges, giving them access to a larger pool of potential buyers and increasing their reach.
• Increased competition: By connecting to multiple ad exchanges, SSPs create a competitive bidding environment, driving up prices and ensuring that publishers receive the maximum revenue for their ad space.
• Direct access to media buyers: SSPs enable publishers to establish direct relationships with media buyers, allowing them to negotiate deals and optimize their ad sales.

By integrating with multiple ad exchanges, SSPs provide publishers with the infrastructure to reach a larger pool of potential buyers, increase competition for their ad space, and maximize their revenue.

Advanced reporting and analytics

Supply side platforms offer advanced reporting and analytics capabilities, enabling publishers to gain valuable insights into the performance of their ad inventory and make data-driven decisions to optimize their revenue.

Here are some key points about the advanced reporting and analytics features of SSPs:

• Granular reporting: SSPs provide publishers with detailed reports on key metrics such as ad impressions, fill rates, clicks, and revenue, allowing them to gain insights into the performance of their ad inventory.
• Customizable reporting: SSPs offer customizable reporting options, allowing publishers to tailor reports to their specific needs and objectives.
• Real-time analytics: SSPs provide real-time analytics, giving publishers instant access to up-to-date data and allowing them to monitor the performance of their ad inventory in real time.

By leveraging advanced reporting and analytics features, publishers can gain valuable insights into their ad inventory’s performance, identify areas for optimization, and maximize their revenue potential.

Tools for managing ad inventory

Supply side platforms provide publishers with a range of tools and features to effectively manage their ad inventory and optimize their revenue.

Here are some key points about the tools for managing ad inventory offered by SSPs:

• Ad inventory management: SSPs offer tools that allow publishers to set pricing, target specific audiences, and block certain types of ads to effectively manage their ad inventory.
• Digital inventory management: SSPs enable publishers to manage their digital inventory across multiple platforms, including websites and apps.
• Ad format optimization: SSPs provide publishers with the ability to optimize their ad formats to ensure maximum revenue and effectiveness.

By leveraging these tools, publishers can effectively manage their ad inventory, optimize their revenue, and deliver the best possible ad experience to their audiences.

Supply side platforms and demand-side platforms are both essential components of the programmatic advertising ecosystem, but they serve different purposes for publishers and advertisers.

Here are some key points to understand the differences between SSPs and DSPs:

• From a publisher’s perspective, SSPs provide the tools and infrastructure to manage and sell their ad inventory, while DSPs help advertisers manage their ad campaigns and bid on ad inventory.
• From an advertiser’s perspective, SSPs connect publishers to multiple ad exchanges, allowing them to reach a larger pool of potential inventory, while DSPs provide access to multiple ad exchanges and ad networks, enabling advertisers to reach their desired audience effectively.

While SSPs and DSPs play different roles in the programmatic advertising ecosystem, they work together to facilitate the buying and selling of ad inventory, ultimately benefiting both publishers and advertisers.

The publisher’s perspective

From a publisher’s perspective, supply side platforms offer significant advantages in optimizing their ad revenue and ad-selling processes.

Here are some key points from the publisher’s perspective:

• Maximizing ad revenue: SSPs enable publishers to connect their ad inventory to multiple demand sources, including ad exchanges and demand-side platforms, increasing the competition for their ad space and driving higher prices.
• Streamlined ad selling process: SSPs automate and simplify the ad selling process, saving publishers time and resources and allowing them to focus on creating high-quality content.
• Control over ad space: SSPs give publishers control over their ad inventory, allowing them to set pricing, target specific audiences, and block certain types of ads.
• Monetization opportunities: SSPs provide publishers with access to a diverse range of potential buyers, including advertisers and agencies, opening up opportunities for monetization.

From the publisher’s perspective, SSPs offer the tools and capabilities to maximize their ad revenue, streamline their ad selling processes, and effectively monetize their ad inventory.

The advertiser’s perspective

From an advertiser’s perspective, supply side platforms play a crucial role in reaching their target audience effectively and efficiently.

Here are some key points from the advertiser’s perspective:

• Access to a wide range of ad inventory: SSPs connect advertisers to multiple publishers, allowing them to reach a diverse range of audiences across various websites and apps.
• Efficient ad buying process: SSPs automate the ad buying process, providing advertisers with real-time access to available ad inventory, enabling them to bid on ad space in real-time auctions.
• Targeted advertising: SSPs allow advertisers to target specific audiences based on demographics, interests, and behaviors, ensuring their ads are delivered to the most relevant users.
• Optimized ad spend: SSPs provide advertisers with insights into the performance of their ad campaigns, allowing them to optimize their ad spend and maximize their return on investment.

From the advertiser’s perspective, SSPs offer the tools and capabilities to reach their target audience effectively, optimize their ad spend, and measure the performance of their ad campaigns.

Several supply-side platforms have established themselves as prominent players in the programmatic advertising ecosystem.

Here are some examples of prominent SSPs in the market:

• Google Ad Manager: Google Ad, formerly known as DoubleClick for Publishers, is a comprehensive ad-serving platform that streamlines the management and sale of ad inventory for publishers.
• Rubicon Project: Rubicon Project, now known as Magnite, is one of the largest SSPs in the industry, offering a range of solutions for publishers to manage and monetize their ad inventory.
• OpenX: OpenX provides publishers with a suite of tools and features to optimize their ad revenue, including header bidding, private marketplaces, and advanced reporting capabilities.

These are just a few examples of the prominent SSPs in the market, each offering unique features and capabilities to help publishers maximize their ad revenue and streamline their ad-selling processes.

In conclusion, supply side platforms play a crucial role in the digital advertising ecosystem by helping publishers maximize ad revenue, streamline the ad selling process, and expand their reach to more advertisers. With features such as dynamic pricing, integration with multiple ad exchanges, and advanced reporting, SSPs offer publishers valuable tools for managing their ad inventory efficiently. Understanding the differences between SSPs and demand-side platforms is essential for publishers looking to optimize their advertising strategies. By leveraging SSPs effectively, publishers can enhance their monetization efforts and improve overall ad performance in the programmatic advertising landscape.