February 10, 2021

SSP and DMP definitions

SSP (supply-side demand) and DMP stand for supply-side platforms and demand-side platforms, respectively. In the advertising ecosystem, these two function simultaneously with data management platforms (DMPs) to facilitate automated purchase and sale of advertising. Interestingly, they perform different functions in the ad networks. Below, we expound to show you the differences and explain aspects such as real time bidding.

Difference between DMP, DSP, SSP

Demand-side platform, in digital advertising is used to purchase automated advertising, including video, display, social media, native, mobile, and social media ads. It is termed the demand side because the people who utilize them demand/need advertisements. This software is utilized by agencies and brands that represent the ads.

As a buyer, the DSP allows advertisers to purchase inventory (buy ad) on publisher sites. These ads may be targeted to one user action, behavior, or demographic or based on your previous online activity. You can access the ad inventory through ad exchanges, and DSPs collect the exchanges while deciding the impressions that are rational for an advertiser to purchase. Ad prices for advertisers are set by way of real-time bidding (rtb).

A data management platform (DMP), on the other hand, is the software responsible for the collection of first, second, and third-party data. This software is used to or organizes the data so that it segments and targets marketers to help improve marketing results. DMPs also help in the analysis of customer attrition and retention rates. As users select desired cookies, this information is sent to advertising platforms that deliver ads against the appearance of cookies on the site. Thus, DMPs work to create ad campaigns, activate date, and hyper-target. DSPs buy advertising according to the information they get from a data management platform and are crucial in digital marketing.

Lastly, SSP allows publishers to put ad impressions on sale through automated auction (sell ad space). It is referred to as the supply-side because of those that use it supply inventory for the ad. Content producers and publishers use it on digital ad platforms. This software is just like the DSP, only that it is meant for publishers and content producers. With this software, a content creator can connect to potential buyers through ad exchange by connecting to DSPs. In simple terms, they can define minimum prices and the rules for advertisers and buyers to purchase inventory.

How DMP and DSP Work

These three software work together, flawlessly in the same process. A brand organizes its audience data in a DMP according to its strategy. The brand then decides its target for a specific ad campaign and feeds the DSP this data. The DSP connects to the SSPs, which will give many different options for the ad to reach the audience at varied prices. It determines the best purchase for the audience at the best price. The exchange takes place when the brand is happy with the inventory and price offered by the SSP.

Programmatic Advertising

Programmatic advertising involves automated buying and selling of an ad slot. Brands utilize DSP analysis to choose the ad spot. DSP shares this information with ad exchanges, and SSP and publishers trade ad space with the aid of the supply-side platform. This is how programmatic advertising works during advertising campaigns. Buying, targeting and selling of ads is not so mystical any more.

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