Ad Tech Fundamentals

14 February 2024

Smart AD Selling – What is a Supply-Side Platform?

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Did you know that by the beginning of 2024, there are over 1.5 billion websites created, with 200 million websites actively maintained and visited?  

Even if only 18% of websites on the internet are actively maintained and visited, it’s still an impressive number, and they all share a common challenge: content monetization.  

Monetizing website content is vital for supplementing or fueling a company’s revenue, making it essential to find effective solutions to achieve this goal. One such solution is supply-side platforms (SSPs), which every publisher needs to know about.  

In this article, we’ll present everything you need to know about SSPs. 

What is a Supply-Side Platform?

What is a Supply-Side Platform

A supply-side platform (SSP) represents specialized software that helps publishers automate the process of selling available ad inventory. Basically, SSPs take care of the managing and distribution of ad space in a platform.  

In a way, supply-side platforms can be considered the “suppliers” of the ad space selling process. SSPs supply and connect DSPs, ad exchanges, and ad networks with advertising slots to deliver their campaigns. And this happens through a bidding process that takes only a few milliseconds. 

How Do SSPs Work?

When a publisher has available ad space to sell, and a user accesses the publisher’s website or app, the SSP is activated and begins gathering information about that ad space, including details about the user, the available ad formats, and the sizes of the ad placements.  

Once this data is compiled, the SSP collaborates and connects with ad inventory buyers, such as DSPs (Demand-Side Platforms), and ad exchanges to present the available ad opportunities. 

The ad exchanges and DSPs provide additional insights into the ad space they seek to purchase, including the target audience demographics, specific ad placements, and available ad formats. 

SSPs facilitate auctioning ad inventory to DSPs and ad exchanges based on their requirements. SSPs do not offer available ad inventory on a “first-come, first-served” basis. Instead, such platforms use the RTB (Real-Time Bidding) process to get the most profitable deals for the ad inventory publishers list (SSP generally ensures that the ad space is offered to the highest bidder).  

Through automated processes, SSPs simplify decision-making for selecting the most suitable ads to fill available ad slots. 

Why is a Supply-Side Platform Important?

Supply-side platforms are vital in simplifying selling ad inventory for publishers, enhancing efficiency, and reducing costs. 

Without SSPs, the traditional method would involve publishers individually negotiating with numerous advertisers to sell their ad space. This manual process would be time-consuming and inefficient, potentially resulting in missed opportunities and lower revenues for publishers. 

SSPs automate and optimize this process, allowing publishers to reach a wider range of advertisers and maximize the value of their ad inventory. By providing a centralized platform for managing and selling ad space, SSPs enable publishers to generate revenue more effectively while ensuring that advertisers can access high-quality inventory to reach their target audiences.  

Additionally, SSPs offer advanced features such as real-time bidding and data analytics, empowering publishers to make data-driven decisions and optimize their ad strategies for better results. 

What Are the Main Features of a Supply-Side Platform?

The supply-side platform concept was developed to simplify the whole advertising process. Along with ad exchanges, ad networks, and DSPs, SSPs come with great features designed especially for publishers. Some of these features are:   

Targeted Ad Delivery

One of the most important is that such software allows delivering ads to a target audience by capping it geographically and based on other critical factors.  

Dynamic Yield Management

Supply-side platforms allocate ad inventory based on bidding. Usually, several advertisers compete for a specific ad space automatically. And at the same time, there is a possibility that some ad spaces remain unused. This is where SSPs step in and ensure that every ad space is used in the most effective way, thus benefiting both publishers and advertisers.  

Thus, when an ad slot is available, advertisers automatically bid for it through a DSP, and the SSP sets a bid range. Afterward, the DSP offers a price that benefits both advertisers and publishers, and the SSP selects the most profitable bid.   

However, if the prices offered are too low, the supply-side platform continues to keep the ad slot available until it finds a more profitable bid. Still, this process takes up to a couple of milliseconds; thus, even if it seems a little complicated at first, ad spaces will most certainly not remain unused when a user accesses a website/app. 

Flexible Ad Formats and Customization

SSPs support various ad formats, including display ads, video ads, native ads, and more. They also allow publishers to customize the appearance and placement of ads to match their brand and user experience requirements. 

Real-Time Reporting and Analytics

SSPs generally offer detailed insights into ad performance, providing publishers with real-time reports on metrics such as impressions, clicks, conversions, and revenue generated. These analytics help publishers optimize their ad inventory and make data-driven decisions. 

SSP vs. DSP

SSP vs. DSP

As we mentioned before, a supply-side platform does not complete the advertising process on its own. The whole RTB process involves more platforms, such as ad exchanges, ad networks, and demand-side platforms.   

Strictly referring to SSP vs. DSP, the supply side platform comes with a wide collection of ad slots for sale, while DSP comes with a collection of bids corroborated with the available offers. 

What is a DSP?

DSP is short for Demand-Side Platform, and it is software advertisers use to buy available ad space automatically. Advertisers can get traffic and impressions on a demand-side platform by using ad inventory from multiple sources simultaneously.  

Usually, the DSP is looking for inventory from SSPs but also ad exchanges, ad networks, and more. 

Supply-Side Platform vs. Demand-Side Platform

While SSPs and DSPs may share some similarities, they are different but complete each other.  

First, the platforms have different end-users. While demand-side platforms are developed for advertisers who want to place their ads on various websites, a supply-side platform serves publishers and helps them sell available ad space to advertisers.  

Furthermore, the features offered by DSPs and SSPs vary. DSPs typically provide advertisers with insights and tools to optimize their campaigns based on performance data. In contrast, SSPs aggregate available advertising space from multiple channels and connect publishers with advertisers who can fill that space. 

In essence, while DSPs empower advertisers to manage and optimize their campaigns efficiently, SSPs streamline the process of monetizing ad inventory for publishers, ultimately driving the success of the digital advertising ecosystem as a whole. 

Who is an SSP for?  

The concept of a supply-side platform was developed to streamline the selling of ad space and make online advertising actions more straightforward. 

SSPs are made for website and app owners who want to make money by selling ad space. This means they allow advertisers to use the available ad space on their websites or apps. 

However, in some situations, SSPs can also help ad networks sell their own available ad inventory. This happens when an ad network cannot sell ad slots directly to advertisers. In this case, the ad network lists its available ad space on a SSP and waits for the platform to fill it with relevant ads. 

How Does a SSP Help Publishers?

Efficient Ad Slot-Filling

SSPs streamline the process of selling available ad slots by automatically connecting publishers with multiple ad exchanges, ad networks, and DSPs. This means that publishers don’t have to manually negotiate with each platform individually. Instead, the SSP handles the communication and negotiation, saving publishers time and effort. 

Increased Revenue Potential

By leveraging the capabilities of SSPs, publishers can tap into a larger pool of advertisers and receive bids from multiple sources simultaneously.  

This competition among advertisers helps drive up ad prices, ultimately maximizing revenue potential for publishers. Essentially, SSPs create a marketplace where advertisers compete for publishers’ ad inventory, resulting in better prices for publishers. 

Optimized Ad Pricing

SSPs utilize advanced algorithms to analyze audience demographics, ad performance data, and market demand to set the highest possible price for publishers’ ad space. This ensures publishers get the best value for their inventory and maximize their ad revenue. 

Quick Ad Placement

Thanks to the automated bidding and ad placement process of SSPs, ads can be displayed to users within milliseconds of ad slots becoming available. This near-instantaneous placement ensures minimal delay in ad delivery, maximizing ad revenue opportunities for publishers. 

Simplified Advertising Process

By centralizing the advertising process and handling communication with multiple stakeholders, SSPs make the entire process easier, quicker, and more efficient for publishers.  

Publishers can focus on creating quality content while the SSP takes care of monetizing their ad inventory. 

Improved User Experience

SSPs are crucial in ensuring that the ads displayed to users are relevant and non-intrusive. By delivering targeted ads that align with users’ interests, SSPs contribute to a better overall user experience on publishers’ websites or apps. This helps retain users and encourages longer engagement, ultimately benefiting publishers. 

Mitigated Risk of Inappropriate Ads

One of the key functions of SSPs is to screen ads and ensure that they meet certain quality standards. By doing so, SSPs help minimize the risk of displaying inappropriate or misplaced ads that could negatively impact user experience and brand reputation.  

This proactive approach reduces the likelihood of users being driven away from the website or app due to irrelevant or offensive ads. 

Top Supply-Side Platforms 

Top Supply-Side Platforms 

In this lineup, we showcase our top SSP platforms based on thorough analysis. However, the order in which these SSPs are presented is not a ranking. Each platform excels in its own unique way, and after careful consideration, we have selected the most suitable options for you from the array of SSPs available in the market. 

Sevio Ad Manager

Sevio Ad Manager is an innovative and user-friendly supply-side platform that pushes the boundaries of digital advertising. It assists publishers worldwide in optimizing ad delivery and maximizing revenue. 

Sevio Ad Manager handles everything from managing ad space on publishers’ websites to automatically connecting with ad buyers. This is achieved by combining cutting-edge technology with comprehensive analytics, giving publishers control of their revenue potential and user experience across various channels and formats. 

Sevio Ad Manager stands out for its beloved features catering to publishers’ diverse needs. Among these features is the advertiser management system, which simplifies interactions with advertisers and ensures seamless collaboration.  

Additionally, publishers appreciate the platform’s flexibility in setting custom ad sizes and integrating native ads, enhancing the user experience and ad performance.  

The creative gallery option provides a convenient solution for storing, sharing, and delivering various ad creations, including static, HTML, or JavaScript ads.  

Furthermore, Sevio Ad Manager’s cost and priority system allows publishers to prioritize ads based on importance and choose cost types aligned with their business objectives.  

Granular audience targeting capabilities enable precise audience segmentation, maximizing ad relevance and engagement.  

Detailed statistics reports empower publishers with insights into ad performance, facilitating informed decision-making.  

Moreover, the platform allows publishers to create branded sales pages effortlessly (with no code), which empowers their customers to buy ads directly from their websites without other intermediaries. 

In essence, Sevio Ad Manager simplifies advertising operations, boosts revenue, and streamlines digital advertising endeavors like never before. The platform aims to become publishers’ one-stop solution for all advertising and sales needs, offering multiple solutions within a single platform. 

Google Ad Manager

Usually, where marketing goes, Google follows. And the company has developed some pretty useful marketing tools. Google Ad Manager is one of the most popular supply-side platforms in the world at the moment.    

Google Ad Manager supports multiple ad networks, including Ad Exchange, AdSense, and other third-party platforms. With a simple setup and an intuitive interface, Google Ad Manager includes valuable features, such as granular ad targeting, creating teams, highly detailed reports, and open bidding.   

Moreover, Google Ad Manager offers a pretty helpful feature called Protections. This allows you to set various rules so that the advertisers filling the available advertising inventory comply with your basic requirements, thus helping websites maintain relevancy. 

Magnite

Magnite is currently the largest and most popular independent supply-side platform example. Although available for multiple channels, Magnite focuses on CTV (connected TV) demand.    

Previously called Rubicon, Magnite was launched in 2020 after a merger that aimed to develop innovative technologies for the buying and selling advertising inventory.     

Thus, the company has created a great real-time cloud and big data computing system, reaching trillions of monthly transactions with an extremely short transaction processing time.     

Magnite allows users to manage campaigns, check detailed ad campaign analytics, and manage ad inventory. 

Xandr

Xandr (previously called AppNexus) is an extremely helpful platform for those aiming to connect with multiple DSPs to sell their ad inventories. Xandr uses prebid-powered header bidding technology, deal capabilities, and curated premium demand.     

Though some users believe the platform could be more user-friendly, Xandr still offers extremely detailed yield analytics, data-driven yield optimization, demand channel management, and many other advanced and valuable tools.   

PubMatic

PubMatic is usually recommended for independent publishers, helping them control and increase their revenue.     

The platform aims to match premium demand to a publisher’s ad inventory by optimizing audience access across screens, channels, and ad formats. Thus, PubMatic matches an advertiser’s needs to a publisher’s inventory.     

PubMatic has also developed innovative technology for omnichannel monetization, as well as built-in ad quality tools and private marketplaces for advertising inventory. 

Top Supply-Side Platforms: In a Nutshell Features Comparison

Sevio Google Ad Manager Magnite Xandr PubMatic
Ease of Use  Highly intuitive interface, user-friendly design Easy setup, familiar for Google users Interface can be complex for beginners Requires technical expertise User-friendly for basic tasks
Advertiser Management Dedicated system for seamless collaboration Limited interaction features Basic management tools Advanced tools for managing complex partnerships Built-in tools for private marketplaces
Ad Format Flexibility Standard and custom sizes, native ad integration Standard formats, limited flexibility Primarily video formats (CTV focus) Wide range of formats, complex setup Strong support for omnichannel formats
Creative Management Built-in creative gallery for easy storage and sharing Basic creative management tools Limited creative management features Advanced creative management tools Creative optimization tools
Cost & Priority System Granular control over cost types and ad priority Basic cost controls and priority options Limited customization for cost and priority Advanced controls for complex pricing models Revenue optimization tools
Audience Targeting Granular audience segmentation for precise targeting Advanced targeting options Targeting mainly focused on CTV audiences In-depth targeting capabilities Multi-screen audience targeting features
Reporting & Analytics Detailed performance reports with actionable insights Comprehensive reporting suite Data-driven analytics focused on CTV performance Extensive reporting for advanced users Omnichannel performance analytics
Branded Sales Pages Create branded pages for direct ad sales (no coding) No built-in sales page functionality Limited sales tools No sales page feature Private marketplace tools for direct deals
Additional Features Open bidding, header bidding, dedicated support team Integrations with Google products Focus on programmatic, header bidding support Advanced prebid and yield optimization tools Strong omnichannel monetization features, dedicated support
Overall Focus Simplifying operations, boosting revenue, all-in-one solution Established platform, large network Leading CTV SSP, innovative technology Advanced tools for complex needs Omnichannel revenue maximization

Key Takeaways

  • Advertising has reached a point where several processes can be streamlined. And this is where a supply-side platform can help.     
  • A supply-side platform consists of software that enables publishers (website or app owners) to sell their available advertising space to those aiming to place their ads somewhere (advertisers).    
  • The entire process of real-time bidding (RTB) unites three types of platforms: ad exchanges, DSPs (demand-side platforms), and SSPs (supply-side platforms). Such software can help advertisers and publishers deliver ads in suitable places for both parties. Thus, advertisers get impressions, and publishers increase their revenue.      
  • Among the top supply-side platforms available currently, some of the most popular are Sevio Ad Manager, Google Ad Manager, Magnite, Xandr, and PubMatic. 

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