DSP vs SSP: The Key Difference in Programmatic Advertising

Programmatic advertising has transformed the way digital ads are bought and sold. Thanks to modern AdTech solutions, it is possible to replace slow, manual negotiations with automated transactions that happen in milliseconds. Demand-side platforms (DSPs) and supply-side platforms (SSPs) are core components of this ecosystem. They work together to connect advertisers with publishers in a highly efficient marketplace powered by real-time auctions.

In this article, we will provide a detailed DSP vs SSP advertising comparison so that you can easily understand which platform can address your needs (or maybe you should use both!).

What is a DSP?

Prior to discussing DSP vs SSP differences, it is important to establish some fundamental information regarding both platform types.

It means that the process is fully automated and, as a rule, it happens following real-time bidding (RTB) principles.

Thanks to the introduction of DSPs, advertisers do not need to interact and negotiate with publishers directly. Instead, they can get access to ad inventory across various channels (websites, apps, connected TV, audio platforms, etc.) just from a single interface.

The most well-known examples of DSPs are The Trade Desk, Google Display & Video 360, Amazon DSP, and MediaMath.

Benefits of using DSPs

• High precision of targeting. DSPs combine audience segments, location, device type, real-time preferences, and behavioral insights to deliver ads to the right users.
• Real-time bidding. Such platforms help advertisers buy the most appropriate ad space and show users the best-suited creatives just within milliseconds.
• Performance optimization. AI and machine learning algorithms can continuously improve campaign performance.
• Multi-channel buying. Advertisers can manage display, mobile, connected TV, and other types of ads used in their campaigns from one dashboard.
• Scalability. To expand their reach, companies don’t need to scale their teams up. Now, they can place millions of their ads across thousands of sites without manual workflows.
• Transparent reporting. Modern DSPs have transparent analytics dashboards that offer in-depth insights into impressions, clicks, conversions, and ROI.

What is an SSP?

Publishers use SSPs to make their ad space available to multiple ad market participants, including DSPs, in real-time. This approach to selling ads helps ensure that they achieve the highest possible revenue for each impression.

Google Ad Manager (GAM), Magnite, and PubMatic are among the most commonly used platforms of this kind.

Benefits of using SSPs

• Increased revenue. Publishers can sell their ad inventory to the highest bidder and maximize their revenue.
• Expanded reach. With an SSP, publishers can access hundreds of advertisers and DSPs at the same time, which is far beyond the limits of direct sales.
• Precision inventory management. SSPs make it easier to set price floors, control ad formats, and block unwanted categories to protect brand integrity.
• Automated yield optimization. AI-driven algorithms and header bidding help constantly improve pricing and fill rates.
• Multi-channel monetization. With a single dashboard, publishers can manage their display, video, native, mobile, and connected TV inventory.
• Insightful reporting. Just like DSPs, SSPs allow their users to gain easy access to performance insights. Publishers can continuously track fill rates and total revenue in real time.

What is a Supply-Side Platform (SSP) in Advertising

SSP stands for supply-side platform in advertising. Learn what SSPs mean, how publishers sell ad space on their website & app.

Difference Between SSP and DSP: What You Should Know

Now, when we have described each platform separately, let’s proceed to the demand side platform vs supply side platform comparison.

Users

Objective

How they work in programmatic advertising

What data they use

Revenue focus

DSP and SSP Examples of Similarities

Our DSP vs SSP comparison demonstrates that these are two completely different but related solutions. Nevertheless, do they have anything in common, apart from being components of the same digital ad ecosystem?

• Real-time bidding. Both platforms participate in the same real-time bidding processes and are connected via ad exchanges.
• Data-driven decision making. For achieving their goals, DSPs and SSPs heavily rely on data (though different).
• Multi-channel capabilities. Platforms of both types can simultaneously work with multiple ad formats and channels, such as display, native, mobile, connected TV, etc.
• Integration with other AdTech tools. DSPs and SSPs integrate with data management platforms (DMPs), brand safety tools, and analytics solutions.

How DSPs and SSPs Work Together in the Advertising Ecosystem

As you can see, both DSPs and SSPs play essential roles in the programmatic advertising space. They don’t replace each other. Instead, they can be effectively used together. Here’s how it usually happens.

1. When a user visits a website, the publisher’s SSP identifies available ad inventory on the page.
2. The SSP sends this inventory data to multiple ad exchanges. Then, these exchanges forward requests that include user data to various DSPs.
3. The DSP analyzes the bid request using targeting criteria and real-time data, including audience matching and creative compatibility.
4. If the DSP finds the impression valuable, it submits a bid in real time.
5. The SSP collects all bids and selects the highest one that meets the publisher’s criteria.
6. The winning ad is delivered to the user. As a rule, it happens in milliseconds after the page load starts.

Final Word

DSPs and SSPs are two types of AdTech solutions that are involved in programmatic advertising and interact with ad exchanges. Nevertheless, they serve opposite sides of the marketplace. A DSP works for advertisers, while an SSP works for publishers. But both are required for effective programmatic ad transactions.