Supply Side Platform (SSP): What Is It & How Does It Work?

8 Min Read

Supply Side Platforms—or SSPs—play a vital role in the ad ecosystem. Whether or not you’ve used them, heard of them, or are just discovering them, we’ve put together this quick guide to show what they can and cannot do, and how their role in programmatic advertising has been recently changing.

What Is a Supply Side Platform?

A Supply Side Platform (SSP) is a technology platform that enables digital publishers and media owners to manage, sell, and optimize their available inventory (ad spaces) programmatically to various potential buyers, maximizing ad revenue in real-time bidding environments.

SSP vs Demand Side Platform

A demand-side platform (DSP) is a tool that allows advertisers to buy digital ad inventory programmatically, using data-driven targeting to reach specific audiences.

While an SSP helps publishers maximize the value of their ad space, a DSP enables advertisers to bid on and purchase that inventory in real-time efficiently. In other words, DSPs are the other side of the equation.

• Learn more about SSP vs DSP.

Supply Side Platform Benefits

Leveraging the full potential of an SSP can significantly enhance a publisher’s ability to monetize their ad inventory. Here are some of the key benefits:

1. Maximized Revenue Potential

SSPs connect publishers with multiple advertisers, creating a competitive bidding environment that ensures ad placements generate the highest possible earnings. This auction-based system helps publishers get the best value for their available inventory.

2. Precision Audience Targeting

With advanced segmentation tools, SSPs enable publishers to serve ads to highly relevant audience groups. This improved targeting enhances user engagement and boosts overall ad performance.

3. Seamless Real-Time Bidding (RTB)

By automating the auction process, SSPs allow ad inventory to be bought and sold in real-time. This ensures optimal ad placement while increasing efficiency and reducing wasted impressions.

4. Comprehensive Performance Insights

SSPs offer robust analytics and reporting, giving publishers deep visibility into ad performance, revenue trends, and audience engagement. These insights support continuous optimization and smarter monetization strategies.

5. Expanded Advertiser Access

By integrating with multiple demand sources, including ad networks, ad exchanges, and DSPs, SSPs expose publishers to a wider range of advertisers. This broader competition drives higher bids and maximizes profitability.

How Does a Supply Side Platform Work?

So again, an SSP facilitates digital advertising by automating the sale of ad inventory from publishers to advertisers. Here’s a step-by-step breakdown of how it operates:

• Integration with Publishers: An SSP is integrated with digital publishers’ websites, apps, or other digital platforms, allowing them to offer potential buyers their available ad inventory (spaces where ads can be displayed).
• Inventory Management: Publishers use the SSP to manage their ad inventory, setting parameters such as minimum prices for ad spaces, types of acceptable ads, and preferred advertisers, to control how their inventory is sold.
• Connection to Demand Sources: The SSP connects to various demand sources, including Demand Side Platforms (DSPs), ad exchanges, and directly with advertisers, expanding the potential buyer pool for the ad inventory.
• Real-Time Bidding (RTB) Interface: Most SSPs support RTB, enabling ad inventory to be sold through live, automated auctions. When a user visits a publisher’s site, information about the available ad impression and the user’s profile is sent to the SSP.
• Auction Process: The SSP conducts an auction among interested buyers, who bid on the ad impression in real-time. The highest bidder wins the right to display their ad to the user.
• Ad Serving: Once the auction is won, the SSP instructs the publisher’s ad server to display the winning advertiser’s creative (ad) in the designated ad space on the publisher’s platform.
• Performance Tracking and Reporting: The SSP tracks the performance of the ad placements, including impressions, clicks, and revenue generated, providing publishers with insights and data for optimizing their inventory sales.
• Revenue Optimization: Using data analytics and machine learning algorithms, the SSP continuously optimizes inventory pricing and buyer matching to maximize revenue for publishers while ensuring the inventory’s quality and value are maintained.
• Payment and Settlement: After the ads have been served and performance metrics collected, the SSP facilitates the financial transactions, ensuring publishers are paid for the sold inventory according to the agreed terms.

In essence, SSPs empower publishers to efficiently monetize their digital ad spaces by automating sales processes, maximizing revenue, and maintaining control over their inventory.

How Does Targeting Work In an SSP?

SSPs use advanced targeting methods to ensure ads are served to the most relevant audiences, improving engagement and maximizing ad revenue.

• Contextual Targeting: Ads are displayed alongside web content that aligns with the topic of the page, ensuring relevance based on what the user is currently viewing.
• Behavioral Targeting: User data, including browsing activity and past interactions, is leveraged to serve ads that match individual interests and online habits.
• Geographical Targeting: Ads are delivered based on the user’s location, enabling brands to execute precise regional and local advertising strategies.
• Demographic Targeting: Factors like age, gender, and income are used to segment audiences, allowing advertisers to reach consumer groups most likely to convert.
• Device Targeting: Ads are tailored to the user’s device—whether mobile, desktop, or tablet—ensuring an optimized viewing experience and improved engagement.
• Time-Based Targeting: Campaigns are scheduled to run at optimal times, displaying ads when the target audience is most likely to be active and responsive.

Supply Side Platform Examples

Exploring key SSP providers can help illustrate how these platforms empower publishers to optimize their ad inventory.

Is Amazon an SSP?

Yes, Amazon offers an SSP known as Amazon Publisher Services, which enables publishers to boost ad revenue through programmatic auctions and streamlined inventory management.

Is Google an SSP?

Yes, Google runs an SSP called Google Ad Manager, which helps publishers efficiently manage and monetize their ad inventory across various channels and devices.

Other SSP Examples

• AppNexus
• PubMatic
• OpenX
• Index Exchange
• Magnite
• Xandr

How Do Supply Side Platforms Make Money?

Many SSPs don’t charge a fee—or charge a very small one—to join and use. This may raise questions about how they generate enough revenue to cover operating costs. Here are the most common ways that SSPs use to make money:

• Transaction Fees: SSPs typically charge a percentage of the revenue earned by the publisher for each successful ad impression they facilitate.
• Platform Usage Fees: Some SSPs may charge a flat fee for using their platform, particularly for premium services or advanced features.
• Data Fees: SSPs can monetize the data they gather about users and impressions, providing this valuable information to advertisers or other third parties for a fee.
• Managed Services: In addition to automated ad sales, some SSPs offer managed services where they take a more hands-on role in optimizing a publisher’s ad sales, often for an additional fee.
• Ad-Serving Fees: Some SSPs also function as ad servers, hosting the ads and delivering them to the publisher’s site, and charge a fee for this service.

With each SSP taking a small percentage of revenue, this business model can quickly add up for advertisers. Further, SSPs are not always transparent with pricing, as some have been known to sneak in hidden costs or additional audience segments with a markup and arbitrage inventory.

How Does Performance TV Stack Up?

Want premium CTV ad placements without the uncertainty of open exchanges? MNTN’s platform connects directly with top SSPs, giving you guaranteed access to high-quality streaming inventory. That means better brand safety, more engaged audiences, and full transparency into where your Connected TV ads run.

Here’s what you get with MNTN Performance TV:

• Premium CTV Inventory – Secure top-tier ad placements on leading streaming services, ensuring high-quality impressions with engaged viewers.
• MNTN Matched – AI-powered targeting pinpoints the right audience, so your ads reach viewers most likely to convert.
• Verified Visits™ Attribution – Accurately tracks site visits and conversions tied to ad exposure, giving you clear performance insights.
• Automated Optimization – AI continuously adjusts your campaign in real time, maximizing efficiency and eliminating wasted ad spend.
• Reporting Suite – Access real-time data on campaign performance, audience engagement, and ROI to make smarter, faster decisions.

Get premium streaming inventory with the control and transparency you need—run your CTV campaigns with MNTN’s self-serve software—sign up today to get started.

Supply Side Platforms: Final Thoughts

Supply Side Platforms (SSPs) have long been popular with publishers and helped set the stage for how ads are bought and sold. For brands looking to go further, platforms like Performance TV take the next iterative step. By listening to the pain points of advertisers and building a more efficient and powerful OTT advertising platform, Performance TV gives the brands the control to maximize their ad inventory.

Want a Closer Look?

Discover how Performance TV delivers revenue, conversions and more through the power of Connected TV. Request a demo today to speak to an expert.