Difference between DMP and DSP

DMP vs DSP

Digital data is an key factor for a successful marketing plan as it allows advertisers to target their products and services toward customers who are most likely to purchase them. DMP and DSP are the part of the ad-tech ecosystem. Both the platforms are focused on delivering their digital marketing strategies more effective.

DMP vs DSP

What is a data management platform (DMP)?

• A Data Management Platform is a software tool that collects, stores, and organizes the data collected from various sources such as websites, mobile apps, and offline data and beyond
• DMP allows to categorize collected data into various segments using a specific set of rules
• Data from various sources are segmented to create broader audience group profile and generate higher ROI
• DMP helps to optimize your omnichannel marketing stretegy (omnichannel and multichannel marketing)
• DMP helps advertisers to gain audience insight, including behavior and changes in shopping patterns. So, They can plan future campaigns and forecast more accurately

What is a demand side platform (DSP)?

• A DSP is a platform that connects media buyers with data exchanges and supply-side platforms through a single interface. DSP helps advertisers to buy ad placements through an sophisticated ecosystem
• DSP allows to sell and buy segmented data through the single interface
• Different layers of targeting and managing the campaign can be done with the DSP
• DSP were build to optimize the bidding and placement process for advertisements
• DSP helps to deliver ads through Real-time bidding(RTB) on accurate targets that minimizes ad spend waste and helps to increase return on investment(ROI).