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Traditional methods of selling digital ad space have their limitations. The direct deals and manual bidding process often leave publishers with unsold inventory and missed revenue opportunities.
To address this issue, programmatic buying and selling of ad space gained popularity. This led to the development of Supply-Side Platforms (SSP) and Demand-Side Platforms (DSP).
Now, publishers and advertisers have access to advanced technology that automates the buying and selling of ad space in real time. In fact, the global SSP software market is projected to reach USD 24295.87 million by 2028, growing at a CAGR of 15.65% from 2022.
This comprehensive guide will explain what SSPs are, their role in the digital advertising ecosystem, and how they work. We’ll also discuss the benefits of using an SSP for publishers.
A supply-side platform, also known as a sell-side platform help publishers earn revenue by selling ad space on their websites. In simple terms, an SSP connects publishers with ad networks, demand-side platforms (DSPs), and other buyers who are interested in purchasing ad space.
At its core, an SSP is a technology platform that allows publishers to manage and sell their ad inventory programmatically. It enables publishers to offer their ad space to multiple buyers simultaneously, increasing the chances of selling it at a higher price.
Key components of an SSP include:
Ad Server: Manages the delivery of ads on a publisher’s website.
Ad Exchange: Facilitates the buying and selling of ad space in real time.
Real-Time Bidding (RTB) Technology: Allows for automated auctions to determine the highest bidder for ad space.
In the digital advertising ecosystem, SSPs act as the intermediary between publishers and advertisers. They help publishers monetize their content, while also providing access to a wide range of advertising partners. For publishers, using an SSP can result in increased ad revenue through higher CPMs (cost per thousand impressions) and fill rates. This is because SSPs use data and algorithms to optimize ad placement, resulting in more relevant ads for the audience and higher bidding from advertisers.
SSPs work by utilizing advanced technology to automate the buying and selling of ad space. Here’s a breakdown of their operations:
SSPs use programmatic advertising and real-time bidding (RTB) technology to facilitate the buying and selling of ads. Programmatic advertising involves using data, algorithms, and automation to buy and sell ad space in real time.
RTB is a type of programmatic advertising that uses auctions to determine the highest bidder for ad space. This technology allows advertisers to bid on specific ad impressions, rather than purchasing in bulk.
SSPs also connect to demand-side platforms (DSPs), which are used by advertisers to purchase and manage their ad campaigns. By integrating with DSPs, SSPs enable publishers to reach a larger pool of potential buyers.
One of the main functions of an SSP is sourcing ad inventory from publishers. This involves connecting with publishers and their ad servers to gather information about available ad space. Once the inventory is collected, it is made available for real-time bidding.
SSPs facilitate automated auctions for ad space by sending bid requests to DSPs and receiving bids back in real-time. This process allows for the highest bidder to win the ad space and have their ad displayed on the publisher’s website.
This automated process eliminates the need for manual negotiations and increases efficiency for both publishers and advertisers.
To fully utilize the benefits of an SSP, it is important to understand what makes a high-quality platform. Here are some key features to look for in an SSP:
The primary function of an SSP is to automate the selling and optimization of ad inventory. This includes utilizing data and algorithms to optimize ad placement, thereby increasing the chances of selling at a higher price.
A high-quality SSP should have advanced technology and processes in place to automate the entire ad selling process, from sourcing inventory to real-time bidding. This saves time and resources for publishers and results in higher ad revenue.
Fraudulent activities, such as ad fraud and invalid traffic, impacts the quality of ad inventory. A top-tier SSP should have robust fraud detection measures in place to ensure the quality and legitimacy of ad impressions.
For example, some SSPs use machine learning algorithms to identify and block suspicious traffic. The software can detect patterns that indicate fraudulent activities and prevent low-quality ads from being displayed on the publisher’s website.
Data is a top priority for publishers, and an SSP that offers real-time reporting and analytics is a valuable asset. Real-time reporting allows publishers to monitor their ad inventory and performance in real-time. This allows for quick adjustments and optimizations to be made, resulting in increased efficiency and revenue.
Analytics help publishers understand their audience and ad performance better. For instance, SSPs can provide data on ad impressions, clicks, and conversions to help publishers optimize their ad monetization strategy. With this data, publishers can make informed decisions about their ad inventory and maximize revenue potential.
The visibility and quality of ads also contribute to a high-quality SSP. Media owners want to ensure that their brand is represented well and that their audience receives relevant, high-quality ads. A good SSP should have measures to ensure that only reputable and relevant ads are displayed.
For example, some SSPs offer brand safety tools to prevent offensive or harmful ads from appearing on a publisher’s website. This protects the publisher’s brand and provides a better experience for their audience.
A top-performing SSP should also have frequency capping capabilities. This refers to limiting the number of times a specific ad appears to an individual user within a given time frame. The ad should also be relevant and timely, preventing overexposure and increasing the chances of conversions. To prevent spamming and maintain a positive user experience, frequency capping is an essential feature for a high-quality SSP.
Header bidding is an advanced technology that allows publishers to offer their ad inventory to multiple SSPs simultaneously. This increases ad space competition, leading to higher CPMs and fill rates. A high-quality SSP should be compatible with header bidding to maximize ad revenue for publishers.
Implementing an SSP can be challenging for publishers who are not familiar with programmatic advertising technology. A high-quality SSP would have a user-friendly interface and provide support to help publishers navigate the platform. It should also offer documentation and resources to assist in setting up and managing ad inventory.
Additionally, a good SSP should be able to handle complexities such as supporting different ad formats, device types, and targeting options. This ensures that publishers have the flexibility to sell their ad inventory in various ways and reach a wider pool of potential buyers.
For an SSP to be effective, it needs to be integrated with other ad tech platforms and systems. Here are some key integrations to consider:
SSPs and Demand-Side Platforms (DSPs) work hand in hand to facilitate automated auctions for ad space. DSPs are responsible for bidding on the ad space, while SSPs manage the selling process.
An auction can happen within seconds, with multiple DSPs bidding on the same ad space. This creates a competitive environment, resulting in higher ad revenue for publishers. A high-quality SSP would have strong partnerships with DSPs and be compatible with their technology to facilitate this process.
Not all SSPs support the same ad formats, so choose one that is compatible with the kind of ads you want to display. A top-tier SSP should be able to support various ad formats, such as display, video, and mobile. This ensures that publishers have the flexibility to monetize their ad inventory with multiple ad types, increasing the chances of higher revenue.
Here are some guidelines to help publishers evaluate and choose the right SSP:
An SSP partner should have relations with brands, agencies, and other players in the industry to bring high-quality ads to your platform. The revenue share percentage can help you decide whether the partnership is beneficial. PMPs (private marketplaces) or open exchanges are ways to sell inventory in an SSP, so evaluate which model best suits your needs.
Top SSPs use AI algorithms and machine learning to automate matching advertisers with appropriate inventory, optimizing revenues in real time.
The ad performance in terms of click-through rate (CTR) and viewability are important metrics for best SSP performance. All publishers value the safety of their brands and reputation, so discuss your brand safety priorities with potential SSP partners. The top SSPs use blacklisting and whitelisting tools to help publishers screen ads based on content categories, advertiser domains, or ad types.
The ad performance in terms of click-through rate (CTR) and viewability are important metrics for best SSP performance. All publishers value the safety of their brands and reputation, so discuss your brand safety priorities with potential SSP partners. The top SSPs use blacklisting and whitelisting tools to help publishers screen ads based on content categories, advertiser domains, or ad types.
Here are the top SSPs of 2024 based on user feedback and industry analysis:
A Google-hosted ad-serving platform for publishers looking to sell their inventory programmatically. This SSP has robust brand safety tools, and its popularity is based on Google’s dominance in the digital advertising market.
A suit of ad tech products and cloud-based tools for publishers to manage their inventory and programmatic ad sales. This SSP is known for its e-commerce data, which enables sophisticated targeting capabilities.
Formerly known as MoPub, this SSP is focused on mobile app publishers. It offers mediation services for ad networks, a programmatic marketplace, and an ad-serving platform. Its strong performance in terms of revenue and ease of use makes it a top choice for mobile publishers.
This SSP offers a holistic platform for publishers to manage their ad inventory across various channels. It offers brand safety tools, header bidding integration, and a global demand network.
A merger of the SSPs Rubicon Project and Telaria in 2020, Magnite is a major player in the programmatic advertising market. Its platform enables publishers to sell their inventory through PMPs, open exchanges, and other channels.
As technology and consumer behavior continue to evolve, the future of SSPs looks promising. Here are some trends to consider:
AI is transforming every aspect of digital advertising, including SSPs. With AI-powered algorithms, SSPs can optimize ad placements, match advertisers with relevant inventory, and provide real-time insights for publishers. As AI technology continues to advance, so will the performance and capabilities of SSPs.
Data privacy has become a significant concern in the digital world. SSPs are adapting by implementing tools and processes to ensure compliance with privacy regulations. This includes offering data protection features like user consent management and data encryption.
With the third-party cookie being phased out, SSPs now target data from authenticated users and first-party data from publishers. Contextual and cohort targeting methods are also gaining popularity as alternatives to third-party data.
The digital advertising industry constantly evolves, and SSPs are expected to adapt accordingly. With the rise of connected TV (CTV) and over-the-top (OTT) advertising, SSPs must integrate these channels to provide a comprehensive solution for publishers.
Video dominance, especially on mobile, is expected to continue. SSPs must be equipped to handle video ads and provide metrics such as viewability and completion rates.
In next-generation SSPs, publishers can expect more transparency and control over their ad inventory. This will include setting floor prices, blocking certain advertisers or categories, and choosing which channels their inventory is sold on.
