What is a supply-side platform (SSP)?

A Supply-Side Platform (SSP) is a technology platform used by publishers to manage, sell, and optimize their advertising inventory. SSPs enable publishers to automate the selling process of their ad space, typically to ad exchanges, demand-side platforms (DSPs), and directly to advertisers.

Here are the key functions and features of an SSP:

Key Functions of an SSP

1. Inventory Management:

   • Publishers can manage their available ad space and organize it for sale.
   • SSPs allow for segmentation of inventory by various criteria such as site sections, user demographics, and ad formats.

2. Automated Selling:

   • SSPs connect with multiple ad exchanges and networks to sell ad inventory through real-time bidding (RTB) or direct deals.
   • They help maximize revenue by selling impressions to the highest bidder.

3. Yield Optimization:

   • SSPs use algorithms to analyze data and optimize the pricing of ad inventory.
   • They ensure that ad placements are sold at the highest possible price, balancing fill rates and CPMs (cost per thousand impressions).

4. Reporting and Analytics:

   • SSPs provide detailed reports and analytics on ad performance, revenue, and buyer activity.
   • Publishers can track key metrics to make informed decisions about inventory management and pricing strategies.

5. Audience Targeting:

   • SSPs allow publishers to segment their audience and sell targeted ad impressions.
   • They can leverage first-party and third-party data to improve ad targeting and increase the value of their inventory.

How Supply-Side Platforms (SSPs) Work

1. Integration:

   • Publishers integrate their websites or apps with an SSP to make their ad inventory available for sale.
   • The SSP integrates with various ad exchanges, ad networks, and DSPs.

2. Ad Requests:

   • When a user visits a publisher’s site, an ad request is sent to the SSP.
   • The SSP then broadcasts this request to multiple ad exchanges and DSPs.

3. Bidding:

   • Advertisers bid on the available ad impression through their DSPs.
   • The SSP collects all bids and selects the highest bidder, often considering factors like user data, ad relevance, and floor prices set by the publisher.

4. Ad Delivery:

   • The winning bid’s ad is served to the user.
   • The publisher receives revenue from the winning bid, and the SSP takes a percentage as a fee for its services.

Benefits of SSPs

1. Increased Revenue: By accessing multiple demand sources and utilizing RTB, SSPs help publishers achieve higher fill rates and better CPMs.
2. Efficiency and Automation: SSPs automate the sales process, reducing the need for manual negotiations and enabling publishers to manage their inventory more efficiently.
3. Transparency: SSPs provide detailed reporting and insights, giving publishers transparency into their ad sales performance and buyer activity.
4. Better Control: Publishers can set floor prices, block specific advertisers, and choose which ad formats and sizes to allow, giving them better control over their inventory and brand safety.

Example of SSP Providers

• Google Ad Manager
• PubMatic
• Xandr (AppNexus)

By using an SSP, publishers can effectively manage and monetize their ad inventory, ensuring they maximize revenue while maintaining control and transparency over their ad operations.