Are you currently thinking about the difference between DSP and SSP?
This article will help you to find out more about the two most common ways of selling and buying ads: supply-side platform (SSP) and demand-side platform (DSP).
Table of Contents:
- DSP vs SSP (VIDEO + TABLE)
- What is DSP?
- How does a DSP work?
- What is SSP?
- How does an SSP work?
- What is DMP?
- Why DSP and SSP matter?
DSP vs SSP
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What is DSP?
The demand-side platform (DSP) is software used in order to buy ads in an automated way. DSP provides advertisers with broad access and management of digital ad inventory through multiple ad exchanges at one interface. The demand-side platforms allow advertisers to perform and optimize real-time bidding (RTB) for ads.
How does a DSP work?
Demand-side platforms allow marketers to buy impressions across multiple publisher websites, which are targeted to specific users based on the location, previous browsing behavior. The publishers make their ad impressions available through marketplaces, and DSPs decide which impression purchase would be the most practical option for the advertiser.
The purchasing price of the impressions is set according to the real-time bidding, which means that humans don’t have to negotiate the costs, taking into account that the impressions are auctioned by the highest bidder.
A few examples of the demand-side platform include Google Display & Video 360, MediaMath, Xandr Invest, OneView, and Adobe Advertising Cloud.
What is SSP?
The supply-side platform (SSP) is a programmatic software and digital publishers are the ones who are using it. SSP enables publishers to sell inventory to advertisers at the highest possible rates, consequently earning the revenue.
The main goal of the SSP is to maximize the publisher’s ad earnings. By using a SSP, digital publishers can show video, display, and native ads to their visitors, as well as monetize their webpage and applications.
How does an SSP work?
According to Martechadvisor: “Supply-side platforms evaluate advertisers, set the bidding range, and place the content in real-time.”
To put it simply supply-side platform allows connecting the publisher’s ad inventory to more than one ad exchange and demand-side platforms.
Some of the most popular SSP platforms are Google Ad Manager, OpenX, Xandr Monetize, and Magnite.
What is DMP?
DMP aka data management platform, is software that collects and manages web browser cookies and is a part of the programmatic supply chain. Since DMP collects first, second, and third-party data, it allows businesses to understand better who their clients really are.
DMPs make the data available to DSPs and SSPs for more precise targeting to provide more personalized programmatic ads.
Why DSP and SSP matter?
Both SSPs and DSPs are the perfect solutions that help to eliminate the human factor and supports in enabling the efficient automatization of the transactions and to its related costs.
It is important to remember that not only DSP and SSP matter but also monetization platforms for publishers, which is Setupad’s expertise.
SSPs have a massive added value for digital publishers. It is because SSPs help them more efficiently manage the collaborations with multiple ad buyers and networks. SSPs give a hand to automate the purchasing ad impression process for marketers.