What’s the Difference Between a DSP and an Ad Exchange?

Most display, mobile, and digital advertising today is bought and sold via programmatic. Programmatic is the automated buying and selling of digital media through an online exchange or a demand-side platform. We know it can be hard to wrap your heads around all the tech talk that surrounds programmatic, and wanted to leave you with the key differences between two players in the industry: DSP and Ad Exchanges.

Ad exchanges were the next step in the digital buying process after ad networks. This network focused on audiences instead of sites, making ad space more efficient by organizing it by audience value. Besides choosing what CPM you want to pay, the main benefit of the exchange vs. the its predecessor the ad network is that it is better-targeted, allowing for more highly targeted campaigns—a better inversion of your money. There is also a higher transparency, you can choose the sites you want to advertise on. Its con though, is that you can only access the sites via the exchange.

DSP is the latest evolution in digital media buying. It makes even more use of data and programmatic. Programmatic can give you a wealth of data on every single click, making the evaluation of every click much more valuable. This gives buyers more precision to reach exactly the audience they want at the time they want. Demand-side platforms actually use ad exchanges. It offers multiple inventory sources by connecting to many supply-side networks and ad exchanges. Like ad exchanges, they are transparent and allow you to set your CPM. Its greatest limitation is the learning curve, DSPs can be harder to understand, but with the help of a great team and some time, it is possible to master DSP and its nuances and make an optimal investment for your business.

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