Supply Side Platform (SSP): Definition & Guide - Simulmedia

A supply-side platform (SSP) is a type of software that uses automation to make it easier for publishers and media owners to sell ad space. This software is a key part of the ad-selling process since it connects publishers and their inventory to multiple ad exchanges and demand-side platforms (DSPs).

What’s the difference between a supply-side platform (SSP) and a demand-side platform (DSP)?

Whereas a media buyer or advertiser uses a demand-side platform, a media seller or publisher uses a supply-side platform. As the name suggests, a demand-side platform is designed to help those on the demand side buy impressions at a minimal price, while a supply-side platform’s goal is just the opposite: to help those on the supply-side get the best offer for their impression and maximize their revenue.

How does a supply-side platform work?

A publisher first makes their ad inventory available on a supply-side platform, setting brand safety guidelines, categories and pricing. Then, every time a user clicks on the publisher’s webpage, an ad request is sent to various ad exchanges and/or demand-side platforms.

The resulting auction, held by the SSP, takes all of the factors set by the publisher into account. The demand-side platforms then place bids on the impression being offered. The SSP delivers the winning bid to the website, where it is displayed to the visitor.

Why do supply-side platforms matter?

Just as demand-side platforms use automation to streamline the ad-buying process, supply-side platforms use automation to optimize the ad-selling process. Rather than research and contact advertisers individually, publishers can leverage supply-side platforms to access advertisers at scale.

Another major advantage of supply-side platforms is the ability to better control ad inventory. For instance, publishers have the ability to set price floors — or the minimum price inventory can be sold at. This gives publishers better control of pricing, and ensures they are paid fairly for their ad space.

While publishers are looking to sell their ad space at the highest price possible, certain advertisements can tarnish their image. SSPs can determine which advertisements can and cannot purchase inventory, ensuring brand safety is preserved.

While SSPs and DSPs certainly have their benefits, there’s still room for improvement. Both platforms are built for the world of digital advertising, rather than CTV and streaming TV advertising. Simulmedia solves this problem with a patented solution that allows advertisers to target audiences with digital-like levels of precision, granularity and timeliness while also providing unparalleled audience reach, cost-efficiency, brand safety and full-funnel performance.