Programmatic advertising is becoming more and more popular: i.e. according to the research, about 15% of all online advertising is expected to grow in 2023 compared to 2022. Advertisers are increasingly using DSP to reach the most relevant audience. But how is it possible to optimize the process of selling ad inventory for publishers? RTB auction allows managing the inventory in an automated manner.
This is where the Supply Side Platform (SSP) comes to the rescue. Let's see what supply-side platforms serve for?
A supply-side platform (SSP) is a software system that allows publishers to offer their available inventory to ad exchanges and demand-side platforms and that is involved in programmatic advertising through real-time bidding (RTB).
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How does a SSP work?
The publisher provides access to the ad inventory through the SSP, which communicates with the DSP and receives both impression audience requirements and advertiser bids. SSP chooses the winner and sends the banner to the advertising network.
According to the second price auction model, the highest bidder is the winner, but the auction closes at the second highest price plus a commission (usually 1 cent). This is different from the first price auction model, where the highest bid wins.
Moreover, SSP uses white and black lists of advertisers to protect the website from unpleasant context. For example, a publisher specializing in medical content will allow you to place a prescription for drugs, while this is prohibited on other websites.
Let’s consider the functions and advantages of SSPs
Among functions:
3. Inventory and campaign management: inventory management, adding an advertiser to the black and white lists, blocking certain types of advertising.
4. Header Bidding: at the moment the user loads the website page, polls directly connected DSP platforms and selects the offer with the maximum rate.
5. Analytics and Reporting: a possibility to create and view reports by publishers on inventory performance: fill rates, clicks and impressions.
Advantages of SSPs include:
2. Reporting. SSPs provide publisher detailed information about who is bidding, the cost of inventory, and how much individual advertisers are buying.
3. Use of multiple networks. SSPs (by connecting to multiple ad networks, ad exchanges and DSPs) allow more buyers to participate in the RTB process and help achieve greater returns.
4. Yield optimization. SSPs give publishers more control over pricing. "Price floors" ensure that inventory is not sold at a certain price.
5. Brand safety. As a mediator, SSPs provide brand safety for publishers by blocking unwanted ads on websites.
Learn more about Brand Safety in this article and in the video.
Summing up
To sum up, the main goal of SSPs is to optimize revenue for publishers and provide profitable ad places through reporting and analytics. SSP not only connects with a large number of advertisers, but also interacts with several ad networks or ad exchanges at once.
