What is a Supply-Side Platform?

 A supply-side platform, or SSP, is a kind of software platform that enables publishers such as website owners, blog owners, app creators, and content creators to sell advertising space on their platforms. SSPs leverage automation to help publishers effectively sell and manage digital ads, allowing them to maximize their revenue while retaining full control over the ad content that is displayed to their user base.

How do supply-side platforms work?

SSPs work on the basis of programmatic advertising, which uses AI and machine learning to match advertisers with suitable publishers based on their targeting criteria and intended audience. When a publisher begins working with a SSP, the SSP is granted access to the publisher’s available inventory. The SSP will then connect that inventory to suitable demand sources, such as ad exchanges, where they are made available for advertisers to bid on. 

The process of auctioning ad inventory happens through real-time bidding. When a user visits the publisher’s platform, the SSP auctions any available ad inventory, selling it to the highest bidder. That bidder’s ad content is they displayed in the relevant ad space for the user to see. All of this occurs in a matter of milliseconds. 

What are the advantages of supply-side platforms?

Supply-side platforms are commonly used because they offer a range of important benefits to publishers. These include the following:

• Access to demand: By using SSPs, publishers can access a wide range of demand sources. This allows them to received multiple bids at once and drives competition, enabling them to consistently auction their ad inventory for good prices.
• Price optimization: Supply-side platforms have reporting functionalities that give publishers insight into how their ad inventory is performing by collecting key data on impressions, clicks, click-through rates, revenue and more. This enables publishers to make informed decisions about minimum prices and ad types.
• Streamlined workflows: Since SSPs automate ad sales, publishers no long need to invest time in communicating with specific advertisers and negotiating prices. This dramatically simplifies the process of managing ad inventory, particularly at scale.
• Brand control: SSPs give publishers the ability to set criteria for the types of advertisers they will accept bids from. This enables them to curate the kinds of ads displayed on their site to ensure that they are relevant and appropriate for their niche.

What is the difference between supply-side platforms and demand-side platforms?

Supply-side platforms (SSPs) and demand-side platforms (DSPs) are closely related but distinct technologies. While both have a key role to play in programmatic advertising, the serve opposite functions.

SSPs enable publishers to sell their inventory to advertisers, and conversely, DSPs facilitate the purchase of ad inventory for advertisers. The two usually interact via ad exchanges, with each taking responsibility for their respective party’s end of a transaction. By working in conjunction, SSPs and DSPs ensure a seamless digital advertising system that benefits both publishers and advertisers.