If you are new to programmatic advertising, you might wonder what the different types of programmatic platforms are and which one you should use for your business. This article will discuss the three most common types of programmatic platforms: DSP, SSP, and ad exchanges.
With the growing popularity of programmatic advertising, more companies are getting involved in this space. As a result, the ecosystem has become quite complex, with different types of platforms, each with its own purpose.
SSP, DSP, and ad exchanges are the programmatic platforms involved in the AdTech value chain, facilitating buying and selling of ads.
Let’s understand in detail each of the programmatic platforms and their key differences. Let’s explore each one in detail, from DSPs to Ad Exchanges and SSPs.
What is an Ad Exchange?
An ad exchange is a programmatic platform that allows buyers and sellers to trade ad inventory in real-time bidding(RTB) auctions.
Ad exchanges are connected to a variety of sources of inventory, including ad networks, ad exchanges, and supply-side platforms(SSPs). Advertisers can use ad exchanges to buy ad space, and publishers can use ad exchanges to sell their ad inventory.
Using these ad exchanges, buyers and sellers can trade ad inventory in real-time, allowing for more efficient and transparent advertising.
What Is a Demand Side Platform?
A demand-side platform (DSP) is software that allows advertisers to buy ad impressions from exchanges at the best price possible.
DSPs are connected to ad exchanges and other sources of inventory. Advertisers can use DSPs to buy ad space during real-time bidding. DSPs help advertisers save time and money by automating the process of buying ad inventory.
The biggest benefit of using a DSP is that it gives you access to a large pool of inventory. You can also target specific audiences with your ad campaigns.
App developers or brands who want to promote their apps can use a DSP to reach their target audience. For example, if you want to target people who have installed a particular game on their phones, you can use a DSP to target them.
What Is a Supply Side Platform?
Most people are often confused between SSP and DSP, but both are different. A supply-side platform or SSP is a programmatic platform that allows publishers to sell their ad inventory in RTB auctions.
SSPs are connected to ad exchanges and other sources of ad inventory. Publishers can use SSPs to sell ad space in real-time bidding (RTB) auctions. SSPs help publishers save time and money by automating the process of selling ad inventory.
The biggest benefit of using a Supply-Side Platform (SSP) is that it gives you access to a wide pool of buyers. You can also optimize your ad inventory to get the best price for your ad impressions.
The difference between DSP and SSP is that SSPs help publishers sell their ad inventory while DSPs help advertisers buy it.
What is Google Ad Exchange?
Google Ad Exchange is an ad exchange that allows buyers and sellers to trade ad inventory in RTB auctions. Compared to other ad exchanges, Google Ad Exchange has a more transparent pricing model.
Google Ad Exchange is connected to a variety of sources of inventory, including ad networks, ad exchanges, and supply-side platforms (SSPs). Advertisers can use Google Ad Exchange to buy ad space, and publishers can use Google Ad Exchange to sell their ad inventory.
SSP vs DSP vs Ad Exchange: Know the technical differences
From DSPs to Ad Exchanges and SSPs, all this jargon might confuse a newbie. So, let’s understand the key differences between them:
Advertisers leverage DSPs to purchase ad impressions from exchanges in a cost-effective manner. At the same time, publishers leverage SSPs to do the exact opposite, which is to accelerate the yield for their inventory.
Moreover, Ad exchanges empower both publishers and advertisers to buy or sell ad impressions in an auction.
Simply put, if you want to buy ad space, you’ll use a DSP. If you want to sell ad space, you’ll use an SSP. Ad exchanges are the platforms where the actual buying and selling takes place.
Why use programmatic advertising?
The most important reason to use programmatic advertising is its effectiveness. Programmatic advertising allows you to target specific audiences with your ad campaigns. Moreover, it saves you a lot of time and money.
Another reason to use programmatic advertising is that it’s constantly evolving. With new technologies being developed all the time, programmatic advertising will only get more effective.
If you’re looking for a way to improve your ad campaigns, consider using programmatic advertising.
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