SSP Platform: Guardian of the Advertising¡ªAn Interview with Colin Han, CPO of hdtMEDIA by Advertising Panorama
2014-08-05
At the beginning of 2013, the entire advertising trade market was just fledging. Except professionals in the digital marketing field who have certain knowledge about this industry, advertisers and media lacked basic understanding about the market. At that time, journalists interviewed William Gu, Vice Research President of hdtMEDIA, on the topic of advertising trade market. He used the ¡°incubation period¡± to describe that market environment.
 
Only after one year, in the advertising trade market, whether international brand advertisers or small and micro businesses, when discussing Internet advertising, they have enough knowledge about the jargons such as RTB. Their familiarity about these jargons is beyond people¡¯s imagination. Professional R & D personnel are constantly developing new products, in order to meet the demands of the media and advertisers.
 
On this occasion, hdtMEDIA officially released the SSP (Supply-Side Platform) committed to optimizing media revenue. Your journalist interviewed Colin Han, CPO of hdtMEDIA on this topic.
 
SSP Optimizes the Media Income
 
SSP is an advertisement service platform open to media. It aims to help the media administrate the channels of revenue, develop more customer resources for premium media, thus to increase the profit of media.
 
SSP administrates revenue channels such as DSP (Demand-Side Platform, which is open to advertisers who can use their own data to advertise), Ad Exchange, Ad Network, etc. When using SSP to interact with these platforms, media could earn money through RTB (Real Time Bidding) and PPB (Programmatic Premium Buying).
 
Colin Han explained, the advertisement eco-chain include six main bodies: the advertisers, DSP, Ad Exchange, DMP, SSP and internet media. The advertisers publicize their advertising needs on the DSP and the internet media put their traffic resources on SSP or Ad Exchange. Through the technological interaction between DSP and SSP or Ad Exchange, the bidding is done. The function of SSP is, when users visit one website, SSP will send a signal of visits to the demand side, then the specific population information of the advertising will be analyzed by DMP (Data Management Platform which collects and manages population data), and send it to DSP which will bid. The winner with the highest price will get the advertising opportunity and reach its target customers.
 
PPB is a supplement to RTB. When the best advertising space of some websites has DSP, which means the premium media and advertisers have developed the contracts, and the potential users have been targeted, RTB is not necessary any more. PPB is employed to open the media resources for advertisers.
 
For advertisers, the introduction of SSP could be helpful. It could provide practical solutions for mass purchasing. For instance, it could effectively cover all sorts of premium population, screen traffic DSP wants according to location and time, and finally provide this to advertisers.
 
SSP Protects the Brand
 
SSP not only promotes the trade between the advertisers and media, but also simplifies the trade procedures, reduces human roles and shortens trading hours.
 
Before the introduction of SSP, most of the media traffic is sold according to time or volume, such as days or CPM. The whole trading procedure, including the execution procedure after ordering is done off-line. Once the advertising plan decided, it could not be altered during the process, thus the advertisers are passive.
 
After the introduction of SSP and programmatic buying, the whole trading process could be done through system interacting. Human roles are reduced, yet the efficiency is enhanced. What is more, during the process of trading, the advertisers and agencies could optimize the advertising at any time by using DSP.
 
Of course, the advertisers and agencies could also cooperate with data providers and utilize the data to target different groups. That is to say, at one page, for different gender, age, professions, the advertisers can offer different prices to the media. Then the resource utilization rate of the media would be more reasonable and optimized.
 
¡°what makes the advertisers happier is that , after the introduction of SSP, the entire media environment evolves to be a sterile room which could better protect brands and present them on appropriate media¡±, said Colin Han, for brand advertisers, they hope the advertising environment is safe and healthy. They don¡¯t want their ads appear on erotic or violent websites. By the same token, for premium media, they don¡¯t want unmatched ads appear on their premium content. The two parties both have the demand to protect the brands. SSP could provide protection for both parties: the media could decide what kinds of ads they need; the advertisers could decide what kinds of websites they want to use. In this way, the advertisers could choose right media for them; the chosen media could also decide if these advertisements are what they permit.
 
What is the scenario before the introduction of SSP? Colin Han told the journalist, in the advertising process before, the media side needs to put a lot of human and material resources, as well as the human intervention before they could decide which advertisements they don¡¯t want, which advertisements they do want. This process consumes too many resources and has many defects.
 
hdtSSP: Marching While Exploring
 
hdtSSP is one of the earliest digital marketing companies to enter the RTB market. Since the first half of 2011, hdtSSP has paid attention to this market and put a lot of effort into the platform development. In the recent 2 years, people gradually knew RTB. Each part of the industrial chain has improved since and SSP has embraced the best timing to get into the market.
 
Compared with other SSP platform, the distinctive feature of hdtSSP is that it could support some advertising ways of rich media, which is valuable for advertisers. In the old RTB market, the majority of the traffic is the traditional banner, which is not suitable for advertisers. Thus rich media has become scarce resources for them.
 
According to Colin Han, the whole SSP market is in the experimental stage, for example, hdtSSP is docking with partners. For media side, especially the media has cooperation with hdtMEDIA Ad Network, they could try SSP; for advertisers, DSP of 4A companies, and many brands which have their own DSP, such as P&G, Unilever, SSP could be improved with the feedback of the premium customers and finally enter the market.
 
At present, the main job of hdtSSP on SSP is concentrating on premium media resources; including their advertising space into the market, helping the media look for suitable brands to advertise. In this way, advertisers would have more choices and advertising would be more effective and targeted.
 
At the mobile and digital TV end, hdtSSP is also developing relevant SSP. Product for mobile will be released in one month or two. Advertising cooperation with TCL, Changhong, Philips and other smart TV manufacturers is also in process. Solutions of advertising are expected.