Exploring Supply-Side Platforms (SSPs) in Ad Tech
The concept of a supply-side platform (SSP) represents a foundational aspect of how marketers purchase advertising space for their digital ad campaigns.
If you are a business owner looking to grow your brand via strategic marketing efforts, you won’t ever use an SSP. But despite that, you can still reap its benefits. Here’s everything you need to know.
What Is a Supply-Side Platform?
An SSP is a software solution that allows media entities to consolidate and sell their ad space using programmatic strategies, automation, and advanced algorithms. Digital publishers use SSPs to sell off ad space (also referred to as inventory) on their websites, social platforms, or streaming channels.
How Does It Work?
An SSP consolidates inventory and automates ad space transactions by uniting publishers and advertisers in the following ways:
● Integration: First, an SSP integrates with apps, websites, streaming channels, etc.
● Inventory Management: Publishers manage their ad space, set minimum prices, and create rules
● Connection to DSPs: The SSP connects to a demand-side platform (DSP)
● Real-Time Bidding (RTB): Compares bids and determines which marketer won an ad slot
● Auction: The highest bid wins the space and gets the impression
● Ad Presentation: The ad is displayed, and the winner gets billed
● Reporting: SSPs collect campaign performance data for reporting purposes
The RTB phase of an SSP’s work is particularly useful to advertisers. Instead of having to pre-purchase inventory, they can set up a campaign and be in the running for dozens of different ad spaces.
If they win a bid, their ad gets displayed and their account is billed. If they lose, they won’t pay anything for that auction. Once a marketer reaches their campaign spending limit, the algorithm will automatically remove their ads from contention, ensuring they aren’t overcharged.
DSPs vs. SSPs
As mentioned earlier, you won’t use an SSP when you are purchasing ad space. You can (and likely will) still benefit from the functionality that these platforms provide, but in order to do that, you’ll need a DSP.
DSPs work from the opposite end of the ad space transaction. Marketers and business owners use them to browse available ad space and make purchases from multiple media entities. In turn, you’ll no longer have to purchase ad space individually. Instead, you can shop multiple options and market across numerous channels through a single interface.
You can think of the SSP as the stockroom in a grocery store. The retailer will order, organize, and maintain goods from multiple suppliers. They’ll then showcase what’s available on store shelves, and customers can make a purchase. Without the stockroom, there wouldn’t be a place for the retailer to reliably store its goods or make them available for sale. And without the sales floor, consumers would have to go straight to the supplier to get what they need.
Benefits of Using Supply-Side Platforms
From the perspective of a publisher or marketer, SSPs are especially useful. They represent a tool for getting a great price for ad inventory. And they also provide access to many more advertisers. As a business owner, increased access means you’ll enjoy more control over where your content appears and who sees it. That is particularly important if you run a local business that caters to a very specific region.
Some of the most important benefits of SSPs, though, include improved control and transparency. Publishers get to set rules regarding the sale of their inventory and what types of ads are displayed on their channels.
For example, let’s say that one publisher placed a minimum price of $5 on a particular piece of inventory. Marketers who set campaign bid caps of $4 would not even be considered for that slot. Media entities can also limit the kinds and categories of ads that are displayed on their channels. In turn, publishers are able to prevent controversial or inappropriate content from being associated with their brand.
SSPs don’t only give publishers more control, though. If you connect with an SSP via a DSP, you will also enjoy more visibility on top of that increased say-so over your campaigns. You can manage your spending, select what types of space to bid for, and maximize your reach.
Tapping Into SSPs
The easiest way to access the inventory on an SSP involves using a DSP. With one, you’ll be able to set up custom campaigns, control your ad spend, and incorporate a new set of tools into your marketing mix. As you plan your next brand-building initiative, make sure to keep both of these powerful solutions in mind.
