DSP vs SSP

DSP and SSP as a part of RTB for comfortable cooperation of publishers and advertisers

DSP and SSP are two platforms, which are required for the application of a real-time bidding system. The latest is a part of a programmatic approach, which becomes more and more popular among marketers. Read the article to find out everything about programmatic and SSP/DSP application.

The essence of a demand-side platform

demand-side platform is a special resource, which is created for the comfort of advertisers. The platform functions on a separate server, which is why marketers can easily control the placement of their adverts and make certain settings concerning targeting, pricing, and other options.

DSP platforms are required for the application of a real-time bidding system and access to the advertising exchanges. Thus, thanks to the application of special software, advertisers can purchase the space for various types of advertising materials, such as:

• display
• native
• search
• video
• social media
• mobile, etc.

The process of purchasing is automated, which is why it takes just fractions of a second.

What is a supply-side platform?

An SSP platform is often called a sell-side platform because it is created for publishers. As well as a DSP platform, it functions on a separate server for the comfort of publishers. Thus, there is no confusion and they can easily manage their advert inventory selecting definite requirements. SSPs are based on the software application. With the help of an SSP, users can also access the advert exchanges and make their inventory available on them offering it to a wide range of advertisers. The process of selling is automated as well as transaction and adverts’ delivery. Thus, SSPs allows publishers connecting to DSP via the advert exchanges.

Another useful option offered by an SSP to publishers is the opportunity to set minimum prices. As a result, they can avoid selling their advert inventory at a too low price. Moreover, it is even possible to achieve the highest cost for the advert space compared to the traditional method of ad trading.

The process of working together

Before we can talk about how supply-side and demand-side platforms work together, it is required to speak about one more side of the process. RTB presupposes the involvement of a third-party side, which is an adverting exchange. It is an independent resource, which is used as a platform for comfortable cooperation of the marketers. It is accountable for information gathering and processing as well as for the connection of advertisers and publishers. Advert exchanges have access to multiple advert networks. Thus, they offer a wide range of publishers’ resources to advertisers.

Now let’s see how all the sides of RTB work together:

  1. By means of the application of a Supply-side platform, a publisher offers an advert inventory on an advert exchange making it available to advertisers.
  2. Via the application of cookies, an Advert Exchange collects information about the visitors of a publisher’s resource.
  3. A bid request is then sent to a Demand-side platform by an AE.
  4. A demand-side platform is to consider the conditions of a deal offered by a publisher.
  5. If they meet the requirements of a definite advertiser, the highest bid is made by a demand-side platform on the online auction, which is organized by an advert exchange.
  6. An AE chooses those advertisers, who meet the requirements of a definite publisher.
  7. An Advert exchange selects the winning bidder and his/her advert is displayed on the publisher’s resource (and the commission is paid to that publisher).

While working with an RTB system, it is vital to build a good strategy and think of targeting. If you know your audience, you can reach them on a more advanced level. The application of SSPs and DSPs provide marketers with plenty of benefits, for instance, transparency, low risks of fraud, reasonable pricing, intelligent orders delivery, less consumption of time & money. Moreover, both sides can effectively control their inventory and materials avoiding money and reputation losses.

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