DSP, SSP, and Ad Exchange: What’s the Difference?

by Isabel Greenfield

8 Min Read

Understanding programmatic advertising is understanding the individual technologies that combine to create it: DSP, SSP, and ad exchanges being key components. Programmatic advertising has enabled a myriad of businesses to advertise across platforms without having to engage an expensive third party like an advertising agency.

Below we walk through the basic components of programmatic advertising—as well as why there may be better solutions out there when it comes to your Connected TV buy.

What is a DSP?

A demand-side platform (DSP) is a tool that allows advertisers to buy digital ad inventory across display, mobile, and CTV/OTT while setting budgets, flight dates, and audience targeting. By automating the ad-buying process, DSPs provide cost-effective access to premium inventory, making them a valuable alternative to traditional ad agencies.

Demand-Side Platform Benefits

Advanced Audience Targeting – Reach the right viewers with demographic, behavioral, and interest-based segmentation to maximize engagement.
Smarter Budget Allocation – Real-time bidding (RTB) ensures you get the most value from your ad spend by securing high-impact placements at the best price.
Data-Driven Performance Tracking – Detailed reporting and analytics give advertisers full visibility into campaign performance for ongoing optimization.

How Does a Demand-Side Platform Work?

Campaign Setup – Advertisers define budgets, targeting, and creatives within the platform.
Real-Time Bidding – The DSP bids on ad inventory instantly based on set campaign criteria.
Ad Placement – When a bid wins, the ad is served to the selected audience on premium digital and CTV inventory.
Performance Tracking – The DSP collects engagement, conversion, and impression data to measure success.
Automated Optimization – The platform adjusts bids and targeting in real-time to continuously improve results.

What is an SSP?

A supply-side platform (SSP) is a tool that helps publishers automate and optimize the sale of their ad inventory across display, mobile, and CTV. By setting floor prices and managing available impressions in a marketplace, SSPs ensure publishers maximize revenue while maintaining control over their inventory.

Supply-Side Platform Benefits

Higher Revenue Potential – SSPs connect publishers with multiple advertisers and ad exchanges, increasing competition for inventory and driving up CPMs.
Total Inventory Control – Set floor prices, approve ad categories, and filter unwanted content to ensure only high-quality, brand-safe ads run.
Real-Time Performance Insights – Gain detailed analytics on impressions, bids, and revenue to optimize monetization strategies.

How Does a Suppy-Side Platform Work?

Inventory Setup – Publishers connect their available ad space to the SSP, defining formats, placements, and pricing rules.
Ad Request Sent – When a user visits the site, the SSP sends an ad request to multiple DSPs and ad exchanges.
Real-Time Bidding – Advertisers compete in an auction, with each DSP placing bids based on targeting criteria.
Winning Bid Selected – The SSP chooses the highest bid that meets pricing and quality requirements.
Ad Served & Performance Tracked – The winning ad is displayed, and the SSP provides real-time analytics to help publishers optimize revenue.

What is an Ad Exchange?

An ad exchange is a digital marketplace where advertisers bid on ad impressions and publishers sell their inventory across display, video, mobile, and CTV. It streamlines the process by allowing advertisers to access inventory without direct negotiations, while publishers maximize revenue by making impressions available in real time.

Ad Exchange Benefits

Seamless Marketplace Efficiency – A centralized hub connects advertisers and publishers, eliminating manual negotiations and streamlining transactions.
Real-Time Bidding (RTB) – Ad inventory is auctioned instantly, ensuring ad space is sold at the best possible price.
Expanded Inventory Access – Advertisers gain access to premium placements, while publishers connect with a broader pool of buyers to drive competition and CPMs.

How Does an Ad Exchange Work?

Publishers List Inventory – Available ad space is uploaded to the exchange with details like format, placement, and pricing.
Bid Requests Sent – When a user visits a publisher’s site, the exchange notifies connected DSPs to bid on the available impression.
Real-Time Auction – DSPs submit bids based on their targeting criteria, and the exchange conducts an automated auction.
Winning Bid Selected – The highest bid that meets all criteria is chosen, ensuring optimal pricing and ad relevance.
Ad is Served & Performance Tracked – The winning ad appears instantly, while data on impressions, engagement, and revenue is collected for future optimization.

How Do They Work Together?

With all the individual pieces in place, how do all these tools work together?

A DSP, SSP, and ad exchange work together to get ad impressions live. A publisher will make their inventory live with the use of an SSP to essentially “plug in” to an ad exchange.

From there, an advertiser will use a DSP to connect to the ad exchange to determine what ad impressions fit the criteria outlined within the setup (as a reminder, this may include audience targeting, inventory type, etc).

When it comes to the DSP vs. SSP, they have slightly different objectives. The publisher is looking to sell their inventory at the highest price possible, while the advertiser is looking to minimize their costs and buy at a lower price.

While it may seem like an SSP vs. DSP standoff, the SSP and DSP work together to balance out the pricing and make sure the advertiser’s bid price and publisher’s floor prices are taken into consideration before an impression is purchased.

This is all done behind the scenes with an automated auction system known as real-time bidding.

Summary of Differences

If the information above is still confusing, don’t worry. We’re going to summarize the key differences between DSPs, SSPs, and ad exchanges so it’s a bit easier to visualize. Each platform has a distinct role and purpose, and understanding the differences among them can significantly enhance your advertising strategies.

Purpose and Function

DSPs are designed for advertisers and allow them to purchase digital ad inventory across multiple platforms, providing tools for managing bids and optimizing ads.
SSPs, on the other hand, are utilized by publishers to manage, sell, and optimize available ad space, effectively maximizing revenue.
Ad Exchanges serve as the marketplace where the buying and selling of this ad inventory occur, connecting DSPs and SSPs.

Main Users

Advertisers and agencies are the main users of DSPs as they provide them with access to ad inventory from numerous publishers.
SSPs are primarily used by online publishers to automate the selling of their ad inventory.
Ad Exchanges are used by both publishers and advertisers to buy and sell ad space, often in real-time bidding environments.

Ad Inventory Access

DSPs provide advertisers with access to a wide range of ad inventory from various SSPs and ad exchanges.
SSPs manage and distribute their ad inventory to multiple DSPs and ad exchanges.
Ad Exchanges host the ad inventory from various SSPs, providing a diverse selection for DSPs.

Pricing Models

DSPs often operate on a cost-per-action (CPA) or cost-per-mille (CPM) basis, allowing advertisers to choose the pricing model that best fits their campaign objectives.
SSPs typically use dynamic pricing models to maximize publisher revenues, adjusting prices based on market demand.
Ad Exchanges facilitate real-time bidding, allowing prices to fluctuate based on real-time demand and supply.

Optimization and Control

DSPs provide advertisers with various targeting and optimization options, helping them reach their target audience effectively.
SSPs offer features such as private marketplaces and price floors to give publishers more control over their ad inventory and revenue.
Ad Exchanges allow for real-time transactions, providing both advertisers and publishers with the opportunity for optimal pricing and placement.

How Does Performance TV Fit In?

Want the benefits of a DSP without the complexity of ad exchanges or the limitations of SSPs? MNTN’s platform gives you direct access to premium CTV inventory, AI-powered targeting, and real-time performance tracking—without the hidden fees or inefficiencies of traditional programmatic buying. You get full transparency, automated optimization, and a direct path to high-quality streaming placements.

Here’s what you get with MNTN Performance TV:

Premium CTV Inventory – Secure guaranteed ad placements on top streaming networks without relying on open exchanges.
MNTN Matched – AI-driven targeting ensures your OTT ads reach high-intent viewers at the perfect moment.
Verified Visits™ Attribution – Tracks site visits and conversions tied to ad exposure, giving you measurable campaign performance.
Automated Optimization – AI continuously refines bids and targeting to maximize efficiency and eliminate wasted spend.
Reporting Suite – Provides real-time insights into audience engagement, conversions, and ROI, so you can optimize with confidence.

Ditch the ad tech confusion—run smarter, more effective CTV marketing campaigns with MNTN’s self-serve software—sign up today.

DSP vs SSP vs Ad Exchange: Final Thoughts

Programmatic advertising helped pave the way to easily reach your target audience across screens. But now, there is an even better way to buy ad impressions on the living room screen, through streaming TV advertising platforms like MNTN. As ad technology continues to progress, so should your ad strategy.