The online advertising industry is going through significant changes with the introduction of advanced technologies such as automation, deep learning, AI-based targeting solutions, and programmatic advertising. In this highly automated market, demand-side platforms (DSPs) and supply-side platforms (SSPs) are crucial parts that enhance the efficiency of marketing campaigns. Read on and learn more about SSP and DSP’s meaning.
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Automation of advertising
As we mentioned, various technologies have revolutionised the way marketers reach their target audiences, and with the increasing demand for ad space and growing competition, they need better automation tools to remain competitive. Such instruments include SSP and DSP.
What is an SSP?
Online publishers with substantial ad space on their websites and apps can utilize a supply-side platform (SSP) to sell it through an auction system, facilitated by automated functions directly from the ad server in real-time. This platform equips publishers with tools to efficiently manage their sources of demand, enabling them to consolidate their advertising inventory and offer it to a wide range of potential buyers. SSPs automate the process of publishers engaging in real-time bidding (RTB) auctions and assessing bids, ultimately aiding in boosting advertising revenue. It’s worth noting that each SSP competes with others and maintains its own network of buyers, resulting in varying prices for ad inventory based on the chosen platform.
What is a DSP?
We know more about SSP, so now it’s time to delve into DSP’s meaning. It’s a demand-side platform used by advertisers to buy ad inventory from multiple publishers in an automated manner. Advertisers typically have specific targeting requirements, such as demographics, interests, or location, and DSP helps them find the most relevant ad space for their needs. Overall, DSPs give advertisers tools to manage and optimise their ad campaigns. They’re great for including ad formats, bidding strategies, and reporting advertisers who want to streamline the process of purchasing ad inventory and maximise their return on investment at the same time.
What are similarities and differences between SSPs and DSPs?
As you may have noticed, although DSPs and SSPs cater to different users, their goals are essentially the same – they aim to enhance the effectiveness of advertising efforts. While DSPs serve marketers and advertisers who seek to have more influence and authority over their advertisements, SSPs are used by publishers who aim to sell their ad space at the best price. This means that these two platforms are complementary and work together to drive success for both parties.
And what about their differences? As we mentioned, DSPs and SSPs have distinct purposes and serve different end users. This difference in functionality enables both platforms to perform different tasks. For example, an SSP allows publishers to sell their ad inventory across various ad exchanges, whereas a DSP lets advertisers purchase the desired advertising space across multiple ad exchanges simultaneously, using audience targeting. DSPs also have a narrower focus, allowing advertisers to optimise various campaigns, while SSPs act as software that combines inventory, multiple ad networks, ad exchanges, and DSPs, all at once.
Janice has been with businesskinda for 5 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider businesskinda team, Janice seeks to understand an audience before creating memorable, persuasive copy.