Major players of the ad tech world: DSPs, SSPs, ad exchanges
The algorithms of ad selling/buying become more complicated and advanced these days. The modern ad market exists due to the multilayer ecosystem that consists of DSPs, SSPs, ad exchanges, ad networks, and ad agencies. Both types of platforms and ad exchanges are interconnected – they work as one whole to ensure the ad buying/selling process. DSPs provide agencies and advertisers with an opportunity to get some beneficial ad space from publishers. The process is supported by SSPs and exchanges that serve as environments for real-time bidding and deal-making. Let’s stop on these three players and discuss them in more detail to dive deeper into the world of advertising monetization.
DSPs: what are they?
To get the most out of the ad campaign, advertisers should pay close attention to targeting capabilities. The ad buying processes should be optimized to reach the right users that are potentially interested in one’s products and services. DSP is a software that allows advertisers to see available relevant advertising slots from publishers on ad exchanges. DSP stores data about the ad campaign, its stakes, and settings and strives to buy appropriate requests at the lowest prices. DSP requires cooperation with ad exchanges which in turn interact with SSPs, so it’s a standalone tech pillar of a global programmatic ecosystem.
How does SSP work?
SSP is a technological platform that stands for the interests of ad sellers. The main function of SSP is to sell the ad inventory at the highest prices. SSP cooperates with DSP tightly: the latter provides information about the existing campaigns, targeting demands, and advertisers’ stakes. The aim of SSP is to choose those offers that bring maximal income. The platform chooses the winner of an ad auction, and as we can see an SSP is basically a flipside of a DSP and advocates for publishers’ goals.
Which role does the ad exchange play?
Media platforms owners have been looking for an opportunity to increase their income since digital ads appeared. Direct deals are desirable, but hard to make. At the same time, everyone strives to do business without third parties to reduce costs. Ad exchanges solve this problem – due to these platforms, advertisers and publishers can cooperate face to face. Remnant inventory and space are sold and purchased on beneficial terms.
Ad exchange is a digital marketplace that brings advertisers and publishers together. They sell impressions and relevant ad space allowing advertisers and publishers to make meaningful deals. Such a platform like The ViewPoint facilitates this process by enabling publishers to sell their ad inventory directly to advertisers. The main features are transparency and higher monetization revenues:
The most popular types of ad inventory are:
All deals are made in real-time and regulated by the RTB technology that partly automatizes the process and makes things easier. Ad exchanges, though connecting buyers and sellers, should be considered as an independent party in the advertising business. This autonomy ensures that both sides will benefit from the deals.
Ad exchanges along with SSPs and DSPs ensure meaningful and high-quality communication between advertisers and their target audiences. The future of these technologies looks cloudless – they change the entire advertising industry for the better and allow brands to improve their digital marketing campaigns. Both buyers and sellers find exchanges beneficial and opt for them actively. Auctions and direct deals help publishers and advertisers find each other and enjoy fruitful cooperation, while the RTB model ensures that all sides of the deal benefit. The campaigns can be improved according to their current performance and advanced tools for analysis allow advertisers to track the results. Whether you are a publisher or an advertiser, consider this technology platform as a part of your strategy.