A supply side platform is also called a sales side platform. Essentially it is a software for programmatic buying, This buying has three softwares — SSP, DSP and Ad Exchange. It makes the process automated. These platforms have been invented in the US. SSP facilitates the management of advertising space inventory of the web publishers. SSPs help them fill the space with ads, and receive revenue in return. Large publishers use SSPs to automate and optimise the selling of their online media space.
The SSPs interface with the advertising networks and exchanges. These in turn interface with the demand-side platforms ( DSPs ) serving the advertisers.
This system makes it possible to put online advertising before a select target audience. The transactions are often completed at the DSP end using real-time bidding (RTB).
Some SSPs working in this field are Google, Adform, OpenX, AppNexus, DoubleClick for publishers ( DFP), PubMatic, ExoClick, SpotXchange.
Advertisers or marketers use DSPs and exchanges to buy online advertising. Publishers use SSPs to sell their advertising space inventory of display, video and mobile ads.
Through the exchange, the DSPs buy ad impressions as cheaply and as efficiently as possible. SSPs work for the publishers to do the opposite — to maximise the price at which the impressions are being sold. Technology that powers the SSPs and DSPs is similar.
SSPs connect to multiple ad exchanges, DSPs and networks — all at once. This is an opportunity for the buyers to purchase the ad space. This is an opportunity for the publishers to get the highest possible rates.
SSPs throw ad impressions into ad exchanges. DSPs analyse and purchase them on behalf of the marketers. While buying, an algorithm matches the clients requirement and the demographics of the users. The impressions must also reach as many potential buyers as possible.
Through real-time auctions, publishers can maximise the revenues for their inventory. SSPs are thus yield-optimisation platforms.
DSPs could drive the value of ad inventory. SSPs counter this. SSPs set price floors which dictate the minimum prices for which their inventory can sell to specific buyers or through specific channels.
There are human sales teams, and SSPs are used to sell inventory which the human sales team fail to sell.
An SSP is a publisher side equivalent of a DSP whose main goal is to maximise revenue for the publisher, and make the dealings comfortable.It is an algorithm consisting of three main variables to decide who gets to win the impression. It is on lines of multiple regression analysis. It has to see which variable has the highest correlation with the output or maximum revenue. Every single time an impression is put up for auction the result change based on the values of the variables. The three variables are RTB, Payouts and DMPs. RTB ensures that 90 to 92 per cent of all bids won impressions are based on the highest bid. In Payouts, the advertiser buys on CPA or CPL basis and gives the publisher a certain percentage of profits.Whenever, there is a tie for the bid, the SSP sells the impression to the third party who has the highest Payout rate. It happens very rarely. DMP provides SSP with data of the various dimensions of the consumer or user.