Business Development

An Overview Of Supply Side Platforms (SSPs) In Digital Advertising And How They Work

By Arnab Dey

March 10, 2023

Supply Side Platforms

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An advertising technology (ad tech) platform is a supply side platform (SSP), sometimes known as a sell-side platform, which is used to organize and manage the supply distribution of ad inventories. The publishers and owners of digital media use SSPs for selling advertising space.

Real-time bidding (RTB) in programmatic advertising is facilitated by SSPs, which give publishers the opportunity to maximize yield by concurrently connecting their inventory to a number of ad exchanges and demand-side platforms (DSPs). 

The publisher’s site can increase the amount of money it makes from selling impressions by making them available to as many potential customers as possible. SSPs are sometimes referred to be yield-optimization platforms because of this. In this article, we will tell you about SSP advertising and how it works.

The Definition Of A Supply Side Platform

Publishers can manage and automatically sell their ad spaces through the use of supply side platforms, also known as sell-side platforms or SSP. 

Demand-side platforms, or DSPs, are used by advertisers to control the automatic purchase of the advertising space provided by publishers. SSPs are the DSP’s publisher equivalent. Companies frequently provide SSPs as SaaS (software as a service) goods.

SSPs come in a variety of price ranges, but they typically levy a fee that is deducted from the publisher’s ad revenue as long as the publisher uses the SSP.

Although the expense of creating an SSP is a sizable expenditure, some publishers choose to create and use their own SSPs in order to avoid these fees.

How Does The supply side platform (SSP) Work?

supply side platform (SSP) Work

Publishers can automate the sale of display, video, and native ad space on websites and applications based on impressions by using an SSP, which is an advertising technology.

The purpose of the SSP is to link publishers with demand-side platforms, ad networks, data management platforms, ad exchanges, and ad inventory buyers in order to sell advertising space for publishers.

SSPs have several options for selling a publisher’s inventory, including direct sales to ad networks, direct agreements with DSPs, and, possibly most frequently, RTB auctions.

An explanation of how the publishers are selling their inventory during RTB via supply side platforms is provided below:

How A Publisher Makes Their Accessible Ad Inventory On An SSP?

An ad request is sent from the publisher’s website every time it loads to a number of ad exchanges, as well as occasionally demand-side or supply side platforms, either directly from an SSP or via the publisher’s ad server.

Several DSPs would submit bids on the impression being offered by the publisher in the event of RTB media buys.

The winning bid is then transmitted via the SSP to the website, where it is shown to the user.

How Are The Supply Side Platforms Effecting On Digital Advertising?

Digital Advertising

supply side platforms (SSPs) play a crucial role in the digital advertising ecosystem, specifically in programmatic advertising. SSPs are technology platforms that enable publishers to sell their ad inventory to advertisers and agencies programmatically. The primary function of an SSP is to connect publishers with demand-side platforms (DSPs) and ad exchanges.

Here are some of the key roles played by SSPs in digital advertising:

1. Easy Monetization

The supply side platforms SSPs enable publishers to monetize their digital content by offering their ad inventory to buyers. Publishers can use SSPs to manage their ad inventory, set pricing, and allocate inventory to different demand sources.

2. Ad Exchange Integration 

The supply side platforms (SSPs) integrate with ad exchanges to facilitate real-time bidding (RTB) auctions. Publishers can leverage SSPs to sell their inventory in real-time to the highest bidder.

3. Yield optimization

The supply side platforms (SSPs) help publishers optimize their inventory yield by enabling them to set floor prices, manage bids, and optimize pricing based on demand.

4. Targeting

The supply side platforms SSPs provide publishers with audience insights and targeting capabilities, allowing them to better understand their audiences and deliver more relevant advertising.

5. Reporting And Analytics

SSPs provide publishers with real-time reporting and analytics on ad performance, allowing them to track revenue, impressions, clicks, and other key metrics.

Overall, supply side platforms (SSPs) serve as a crucial intermediary between publishers and advertisers, enabling publishers to monetize their inventory while providing advertisers with access to high-quality inventory at scale.

Wrapping Up:

The supply side platforms are working as the sell side platform. This is a technology platform which is enabling web publishers and digital out-of-home media.

The owners of home media owners are targeting to fill up the ads and then receive the revenue. I hope you are getting the ideas about how the supply side platforms are perf forming on the digital advertising works. If you think we need to include points, then you can share your opinion in the comment section.

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Arnab Dey

Arnab is a passionate blogger. He shares sentient blogs on topics like current affairs, business, lifestyle, health, etc. To get more of his contributions, follow Smart Business Daily.

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