What is a Supply-Side Platform (SSP): Definition and Importance

Supply-side platforms are programmatic software platforms that help publishers offer, sell, and manage their ad spot inventory. The programmatic advertising process involves a streamlined pipeline of bid requests on the buyer’s side and ad inventory offered from the seller’s side. This advanced system allows buyers and sellers to transact ad placements in the blink of an eye.

 

This guide will explore the selling side of this process and give an overview of how of works.

 

Key Highlights

• SSPs are programmatic software platforms that help publishers offer, sell, and manage ad inventory. 

• They streamline ad placement by connecting publishers with multiple buyers, maximizing revenue potential through automation and inventory management. 

• SSPs leverage advanced targeting, and real-time bidding to facilitate a competitive and efficient ad-buying process. 

• These programmatic platforms provide publishers with greater control over their ad inventory, better yield, and access to a wide variety of buyers. 

Supply-Side Platform Key Concepts 

Before delving into the process of how an SSP works, there are a few key concepts we should understand. 

 

Audience targeting 

One of the characteristics of SSPs is leveraging first, or third-party data to refine audience targeting. SSPs can provide packaged programmatic deals based on specific seller-defined audiences, and then send them to DSPs. Advertisers can then leverage the SSPs’ targeting capabilities to target specific audiences. 

 

Header bidding 

This technology enables publishers to offer ad inventory to multiple ad exchanges simultaneously. Essentially, header bidding levels the bidding environment giving advertisers the opportunity to compete in real-time. 

 

Real-time bidding (RTB)

RTB is the core of programmatic advertising. Thanks to real-time bidding, ad space is bought in seconds. Seller-side platforms —SSP—, and buyer-side platforms—DSP—use RTB to send, review and assign bids for ad space automatically.

 

Ad server 

Once the SSP chooses the highest bidder for the ad space, the ad server displays the ad by delivering the winner to the allocated ad space. The ad server then completes the programmatic advertising process. 

How Does a Supply-Side Platform Work? 

 

Before programmatic advertising, advertisers would have media buyers who worked with publishers’ sales teams to manually transact ad spaces. The rise of digital marketing increased the competition over ad spaces, so manual placement was no longer practical. 

 

SSPs use programmatic advertising technology to offer and manage ad inventory. The SSP connects with a Demand-Side platform directly or via an ad exchange, assesses the ad inventory, evaluates advertisers, sets the bidding range, and recommends the best ad for which space. 

 

Most SSPs allow publishers to filter ads by several factors, such as ad format, target audience, and advertiser. The automation makes this process go extremely fast, in seconds.

 

Here are the key steps of an SSP’s typical process: 

• Once you choose an SSP, they provide you with a piece of code that gives them access to your ad units. 
• The SSP issues ad requests to multiple ad exchanges and DSPs whenever there is a visitor to the website. 
• DSPs and advertisers bid on the ad units. 
• The SSP evaluates the ad unit parameters and the advertiser’s requirements to select the best ad at the highest bid. 
• The ad server decides the winner for the open auction and serves it on the publisher’s site. 

 

Discover how Perion’s AI-powered tools can transform your ad inventory. Contact us today.

The Programmatic Advertising Ecosystem

 

Digital advertising continues to grow and takes more percentage from the advertising media spending. The forecast for 2024, is that out of over $800 billion, $302.77 will be allocated to digital advertising. 

According to Statista, by the end of 2024, 82.21% of digital ad spending will be programmatic. The benefits and increased revenue they bring to publishers, empower more publishers to invest in programmatic tools. Together with the growth of digital marketing, the rise of SSPs played a crucial role in the expansion of programmatic advertising, with programmatic ad spending now accounting for a significant majority of global digital ad spending. 

 

Source: Statista

 

How Do Supply-Side Platforms Help Suppliers Sell Ad Inventory?

Supply-side platforms simplify ad inventory sales for publishers, by making ad inventory available for multiple buyers. These programmatic platforms effectively expand the reach of the ad units to an array of buyers, including advertisers, ad exchanges, ad networks, and Demand-side Platforms. 

 

Some ways SSPs support suppliers include: 

 

Provide suppliers with more control over inventory.

SSPs allow publishers to have more control over their ad inventory. They can set ad space parameters, and floor prices, and determine which advertisers or ad types are allowed on their site. 

 

Frequency capping

Frequency capping limits the number of times a specific ad is shown to the same user. This feature eliminates ad fatigue and improves the user experience. Publishers use frequency capping to increase the effectiveness of ad campaigns. 

 

Automation

A core feature of SSPs, automation is what makes it possible to sell ads programmatically. SSPs automate bidding, ad placement, and reporting, reducing the manual workload for publishers. This efficiency allows publishers to focus on strategy while maximizing revenue from ad sales. 

 

Ensures ads are offered to only relevant ad networks

SSPs evaluate demand sources based on criteria like bid rates, ad space availability, and others. This targeted approach helps publishers reach the right audience and enhances the potential for higher ad revenues by connecting with networks that are most likely to bid competitively. 

 

Programmatic Examples for Publishers

Perion’s programmatic solution for publishers focuses on high-impact formats that enhance the user experience for the audience and for publishers. These ad units leverage contextual targeting to fit seamlessly within the content. 

 

 

Display and video ads form a critical part of the Perion offering. These unique and innovative ad formats integrate interactive and advanced creative elements to engage users effectively. 

 

Let’s explore an example:

Georgia Tourism Board

 

The campaign aimed to reach a national audience and expand Georgia’s tourism footprint beyond the Southeast. The goal was to showcase the state as a unique and family-friendly vacation destination. To achieve this, the agency leveraged Perion’s technology to develop high-creative content, and SORT™ technology to reach new audiences without relying on cookies. 

 

The campaign’s ad units told engaging stories that directed users to the landing page, effectively delivering on key performance indicators. The results were significant, with SORT™ technology outperforming other targeting tactics by as much as 71%. Perion’s solutions for publishers combined with proprietary targeting techniques outperformed expectations. 

 

The campaign resulted in 

 

Advantages of Using an SSP for Publishers

Quote: SSPs are like having a top sales strategist by your side

 

Supply-side platforms are game-changers for publishers aiming to boost their ad revenue while simplifying the complex world of digital ad management. Here’s why SSPs are a must-have tool for publishers: 

 

Expand the audience and revenue

SSPs act like rocket fuel for the ad revenue strategy. They connect publishers to a wide network of demand sources, including ad exchanges, Demand-side platforms, and ad networks, all at once. With SSPs, the chances of receiving higher bid rates increase significantly.

 

Optimizes the yield for each ad space

SSPs are like having a top sales strategist by your side. The cutting-edge algorithms and data analytics ensure every ad space offered is sold at the best possible price. By dynamically evaluating the value of ad impressions and fine-tuning pricing strategies. SSPs leverage insights from historical data, audience behavior, and market demand. 

 

Leverages real-time bidding

Real-time bidding is how SSPs do their magic. This feature automates the buying and selling of ad impressions in the time that it takes to load a webpage. RTB streamlines ad transactions and also boosts revenue potential. 

 

Provides transparency and control

Publishers know how their inventory is being sold, who’s buying it, and at what price. This transparency empowers publishers to make data-driven decisions about their ad strategies. SSPs also give publishers control over the types of ads displayed on their platforms. 

 

Learn how Perion helps publishers thrive in a competitive landscape by contacting us

How to Choose the Right SSP?

Choosing the right SSP for a publisher may depend on several factors. 

 

Before starting to look at SSP options, it is important to consider your site speed. SSPs give publishers a code to insert into the website that gives the SSP access to the ad units. Working with more than one SSP can slow the website load speed. That’s why working with a platform like Perion ensures ad layouts are optimized from the dashboard and the website load speed doesn’t change. 

 

To understand what you need from an SSP, you can consider the following questions: 

• Does it offer customization options? 
• Who are the advertiser partners on the demand side?

• What are their sizes and niches?

• What is the level of control the SSP offers to publishers for ad management, inventory, and price setting?

• How’s the platform support? 

• Is the platform easy to set up and use?

 

With these questions in mind, publishers can have a better idea of what they need in an SSP. Features to Look for When Selecting an SSP

Once the publishers have answers to the above questions, it is time to consider the following features and tools when selecting an SSP: 

 

• Ad exchange integration

An SSP is the connection between publishers and the rest of the programmatic ecosystem. SSPs need to integrate with ad exchanges to access a broad pool of advertisers. 

 

• Inventory management

Aggregating and organizing a publisher’s ad inventory is the main feature present in an SSP. The platform should offer publishers a degree of control over their inventory and how they monetize their ad space.

 

• Dynamic price setting

Leading SSPs allow publishers to set a minimum CPM, and price floors – both hard and softfor the ad units. This price flexibility helps publishers maximize their revenue. 

 

• Yield optimization

Look for an SSP that goes beyond managing ad inventory. Leading SSPs leverage data and analytics to maximize the publisher’s revenue from their ad inventory. 

 

• RTB management

This feature is key for an SSP and automates real-time bidding (RTB) auctions to get the highest bid for their ad units. 

 

• Demand forecasting

SSPs use advanced predictive analytics to forecast the future demand for ad units. This feature allows publishers to adjust pricing strategies and optimize revenue. 

 

• Ad format optimization

Modern SSPs optimize the ad format to maximize effectiveness and yield. A leading SSP like Perion recommends the best ad formats for the ad space, according to factors like user behavior. 

 

• Analytics and Reporting

SSPs provide advanced reporting and analytics about ad performance. From a number of impressions, revenue earned, and audience metrics, publishers can understand which ad placements are performing well and which aren’t, allowing them to optimize their strategies. 

 

• User Interface (UI)

A user-friendly interface is important so publishers can make the most of an SSP. Users should be able to easily control ad inventory, set ad parameters, access reports and analytics, and optimize their ad monetization efforts. 

 

• Integration with other software

SSPs integrate with other adtech solutions to provide a seamless experience. For instance, Data Management Platforms, Ad Servers, and Ad Exchanges. 

 

• Package deals

 Some SSPs enable publishers to create direct-sold deal packages by adding third first-party data to their inventory, then offering them as Preferred Deals or Programmatic Guaranteed. Leveraging this feature allows publishers to add value to their inventory with targeted offerings for specific groups of buyers. 

What is the Difference Between DSP and SSP Advertising?

 

Just as SSPs help the supplier side optimize the management and sale of ad units, the Demand-Side platform (DSP) helps advertisers organize ad-buying. It connects ad buyers to multiple ad exchanges and supply-side platforms, expanding their inventory options. 

 

Here are a few differences:

 

How Periorn Empowers Publishers with Cutting-Edge Technology

Perion supports publishers by providing advanced technology solutions that optimize the monetization of their digital assets. Through AI technologies and strategic partnerships, such as the integration with Amazon Publisher Services, Perion enhances ad inventory efficiency, increases engagement, and ultimately boosts revenue for publishers. 

 

These solutions not only maximize ad visibility and performance but also improve the overall user experience, ensuring that web publishers can capitalize on their digital content.

 

Unlock your full monetization potential with Perion solutions

 

FAQs

How do SSPs make money?

Supply-Side Platforms (SSPs) make money primarily via transaction fees on ad impressions sold via their platform and sometimes through platform usage fees. These fees are either a percentage of the revenue generated from the sale of ad space or a flat fee for using the platform. 

Who uses the supply-side platform on an advertising network?

Publishers and media owners use SSPs on an advertising network. These platforms help them manage, sell and optimize their digital ad inventories by connecting them to various ad exchanges and Demand-side platforms (DSPs). 

What metrics are used in SSPs? 

Common metrics used in SSPs include fill rate (the percentage of ad requests filled with ads), eCPM (effective cost per thousand impressions), CTR (click-through rate), and viewability ( how often ads are actually seen by users). 

Is Google Ad Manager an SSP? 

Yes, Google Ad Manager functions as both an SSP and an ad exchange. It allows publishers to manage and sell their ad inventory, connect with various ad exchanges, and optimize ad delivery to maximize revenue.