In our previous article we defined what is DSP and SSP. But what should you use to run your digital advertising? Is DSP better than SSP or is it not? There are some differences that you should know before deciding what is better for you.
How SSP work
There are a lot of publishers connected to an SSP. Those are websites, apps and other traffic sources, that want to sell their slots (ad placements). Those are banners, native ads, videos, audio fragments, text, pop clicks etc.
There are also advertisers, who want to buy those slots and put their ads there. If you’ve seen an auction, you certainly have an idea about how this all works. Slot is the item, advertisers are the bidders.
Advertisers set their bids, the SSP choses the highest one and sells publishers slot. That is RTB, real time bidding and that is how it works.
So we may say, that the purpose of SSP is to deliver best price for the publisher.
How DSP works with SSP
Since Supply side platform is made for publishers, Demand side platform is more about the advertisers. It collects a lot of SSPs, so the advertiser can buy the cheapest traffic.
DSP also optimises the campaign to better reach the audience advertiser needs. It helps to hold the prices and keep publishers from pouring bad traffic. Advertiser or sometimes DSP itself cuts off bad traffic sources that bring less or no conversions.
What is better SSP or DSP
Demand side platform is usually better if you are an advertiser. The more SSPs you use for targeting the smaller bids you pay for relevant audience. Access to multiple Supply partners is the key feature of any DSP. If you don’t use it or only use it partially you are probably wrong.
The only disadvantage of Demand side platform may be some additional costs. You have to pay for the usage. Sign up fee, monthly fees or a percent of your ad spendings. But it usually worth it since you get better optimization, much lower bids and higher ROI.
Also published on Medium.