DMP VS DSP- What’s the difference

The first thing you will ever going to hear or notice while looking at the digital marketing world are the vast amount of different platforms and vendors that are being offered for programmatic media buying and data management work. This is the era of technological advancements and as these giants are shaping themselves into new and advanced forms it is very important for the customers to understand some key differences between these giants platforms.

Digital Management Platform & DSP

Data Management Platforms (DMPs) and Demand Side Platforms (DSPs) are two key players in the Ad Tech ecosystem. We are going to provide you an in depth study of DSP VS DMP. So that you can have a better understanding of which best fits into your data strategy.

DSP and DMP Comparison

Comparison Between Demand Side Platform (DSP) and Data Management Platform DMP

What is a DMP?

What is DMP

DMP Used to maximize the campaigns effects

Data management platform is a centralized and unified technology based platform used for organizing, handling of big data along with activating large sets of data from different sources. Data management platforms have risen to the top of media and advertising on both sides (buy and sell). DMP is built on five unique interconnected pillars that are:

  • Collection
  • Unification
  • Organization
  • Activation
  • Analytics

DMP possess the ability to unify all types of different data within the single one platform. There are three different potential types of data:

  • First-party Data
  • Second party Data
  • Third party Data

First-Party Data: when we talk about first part data it refers to a brand or publishers own data that they have unified and collected from their own consumers. This can include any type of data from a single or multiple websites, CRM, Social Media, Search, analytics or any other possible source of data that they own. It is because it’s the property of the first part data that it is gathered directly from the source. Its quality is high and is very valuable.

Second-party Data: many DMPs allow second-party data sharing for selected partners. These are unique and data assets derived directly from an external source it could be a publisher or any independent partner. It could be seen like this that second party data is actually the first part data of someone else’s.

Third-Party Data: DMP has direct access to a wide range of some third party data providers and some prepackaged small and big data segments. This type of data can be used to build new, larger and improve audiences and to understand their behaviors across the world.

In simple a data management platform is classified as a data warehouse. It is specially designed software to extract, store, sorts and hold information and returns it back in a manner that is useful for marketers, publishers and other businesses.

When to use DMP?

Data collection:  by getting integrated with any DSP you will be able to gather your 1st party data from multiple sources including your own website, mobile apps, social media.

Audience building: once you gather the data is collected and aggregated into your DMP server and you want to use the data and build audience the DMP allows you to build precise audience as you want from the start.

What is a DSP?

How DSP works?

Demand Side Platform.

A DSP is also known as Demand Side Platform. It is a real time bidding system that works as the connector that connects media buyers with data exchanges and supply-side platforms (SSPs) through a single unique interface. Its purposes is to serve as a middleware between different media buyers and publishers. They provide a repository from which they can buy and sell different ad inventories.

Before the advent of DSPs digital ad spaces were bought and sold directly between ad buyers and sellers all around the world and there were some cases which proved this process very expensive and unreliable which leaves the buyers in a tough and confusing spot that’s why DSPs were created to keep everything  clean and streamlined along with cost efficiency.

DSPs allows advertisers to buy different impressions from different publishers websites that are all targeted to some specific users based on key online behaviors and identifiers. DSPs work as the facilitators between publishers and advertisers.  It decides for advertisers which impression is best for the purchase. These impressions then electronically bid on through an automated process and it will be awarded to the media buyer who has placed the highest bid. This whole process happens in real time just as quick as the blink of an eye.

Its main job is to buy media bit it also possess data collection functionality.  It collect limited parameters of data like performance and audience data of media campaigns.

They are designed to help media buyers in purchasing of media that’s why they are usually connected with a large number of different platforms that are involved in media buying and selling like SSPs, ad exchanges and different data suppliers.

When to use DSP?

Campaign Building: DSP helps to structure the audience that have been collected by DMP and analyzes them and determines best candidates for the campaign to be created.

Real Time Bidding: DSP will place the bids in real time across many different platforms which allow clients to get instant updated information on the impressions that are available for the ad display.

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