Ad Network vs. DSP: What is the Difference

In the advertising ecosystem, there are 2 major platforms that help advertisers achieve their goals: Demand Side Platforms (DSPs) and ad networks. Each automates the buying and selling of ad space, using technology to place ads in optimal traffic sources in real-time. Understanding the specific functionalities and strategic advantages of DSPs and ad networks can significantly enhance your ad performance

This article explores the concepts of ad networks and DSP, highlights their differences, and provides insights into which might be more appropriate for various advertising needs.

What is a Demand-Side Platform (DSP)?

A DSP is a system that allows advertisers to buy ad inventory from multiple sources simultaneously, including publishers, ad networks, and ad exchanges. DSPs are designed for those who “demand” ad inventory. They facilitate buying this inventory through automated systems, leveraging real-time bidding (RTB) technology to ensure advertisers can buy the best available ad spaces at optimal prices based on their targeted criteria. 

Key features of DSPs:

• Real-Time Bidding (RTB). DSPs allow advertisers to bid on ad spaces in real-time, offering them the opportunity to purchase ad inventory the moment it becomes available;
• Advanced targeting. Using complex algorithms, DSPs enable advertisers to target their ads to specific users based on detailed criteria, enhancing the likelihood of ad engagement and conversion;
• Integrated with multiple sources. DSPs connect with various ad exchanges, ad networks, and directly with publishers, providing a broad range of inventory options.

How Does a DSP Work?

Here’s a detailed look at how DSPs operate:

Campaign setup:

• Setting up a ad campaign. Advertisers use the DSP to set up their advertising campaigns. They define the target audience, budget, and other campaign parameters such as geographic targeting, time schedule, and desired traffic characteristics.

Integration with supply-side platforms (SSP):

• Connecting supply and demand. DSPs connect with multiple SSPs through ad exchanges. Ad exchanges are digital marketplaces that facilitate the buying and selling of media advertising inventory from multiple ad networks. The inventory comes in various forms, such as display ads, video, push ads, etc.

Participation in real-time Bidding (RTB):

• Bidding process. When a user visits a website, the SSP sends a bid request to the connected DSPs for the ad impression. The DSP then evaluates this request in real-time, using algorithms to decide whether the impression fits the advertiser’s targeting criteria and how much to bid based on the likelihood of campaign success.

Ad placement:

• Winning the auction. If the DSP’s bid is successful, the advertiser’s ad is immediately placed on the website. This process ensures that ads are displayed to the most appropriate audience, maximizing the potential return on investment.

DSPs offer a powerful toolset for media buying, providing extensive access to diverse ad sources and formats, from classic displays to native and video ads. They enable precise, specialized targeting including retargeting and behavioral analysis, allowing ads to be highly tailored based on user demographics and preferences. Moreover, DSPs deliver transparent, detailed analytics on ad placements and performance across various sites, maximizing ad campaign effectiveness and ROI. 

What is an Ad Network?

An ad network, or advertising network, is a technology platform that serves as an intermediary between a group of publishers and a pool of advertisers. It consolidates available ad spaces from various publishers and makes these spaces available to advertisers, enabling them to effectively manage and execute their advertising campaigns across multiple websites. Ad Networks streamline the ad buying process by aggregating large amounts of digital ad inventory, which advertisers can utilize to achieve scale and reach in their campaigns.

Key features of ad networks:

• Centralized buying. Advertisers can access and purchase ad space from multiple publishers through a single platform, simplifying the campaign management process;
• Targeted advertising. Although not as granular as DSPs, ad networks still provide targeting options based on demographics, geography, and content relevance, helping advertisers reach their desired audience;
• Cost efficiency. Ad networks can offer competitive pricing due to their ability to aggregate large volumes of inventory and sell ad displays that fit various advertising budgets.

Check out how ad networks work in detail:

Campaign setup:

• Advertiser engagement. Advertisers partner with Ad Networks to set up their advertising campaigns. They define their target audience, set their budget, and choose their desired ad formats;
• Inventory matching. Ad networks match the advertiser’s requirements with available inventory from their pool of publishers. Unlike DSPs, ad networks connect advertisers with publishers within a single platform. 

Auction process:

• Real-time bidding (RTB). Many ad networks now incorporate RTB technology, where available ad spaces are auctioned off in real time. Advertisers submit bids based on the value they perceive each ad impression holds, considering their campaign goals and target audience;
• Ad placement. The highest bidder wins the ad space, and their ad is served to the user. This process is often instantaneous, maximizing efficiency and ensuring that the ad space is utilized effectively.

Ad delivery and reporting:

• Ad serving. Once an ad is placed, it is delivered to the user during their interaction with the publisher’s site. The effectiveness of the ad placement can be tracked in terms of user engagement and conversion rates;
• Performance analytics. Ad networks provide advertisers with detailed reports and analytics, which help them understand the performance of their ads. This data includes metrics like click-through rates, impressions, user engagement, and conversion statistics.

Which is Better: DSP or Ad Network?

It’s partially correct to suggest that ad networks blend the features of DSPs (Demand-Side Platforms) and SSPs (Supply-Side Platforms) since they help connect advertisers with publishers. However, it’s not accurate to claim that ad networks are better or completely replace DSPs and SSPs. Each tool is designed for specific purposes within the advertising ecosystem. 

Here are the main differences and functions of each platform:

Ad network:

• Aggregation. Advertisers partner with ad networks to set up their advertising campaigns. They define their target audience, set their budget, and choose their desired ad formats. From banners to in-pages push ads, ad networks offer multiple options for media buyers;
• Dual service. Ad networks cater to both advertisers seeking exposure and publishers looking to monetize their sites, thus supporting the revenue goals of both parties. Accordingly, there are ad networks for advertisers and ad platforms for publishers;
• User simplicity. Compared to DSPs, ad networks typically provide a more user-friendly interface that demands less technical expertise from advertisers, making them ideal for smaller businesses or those new to digital advertising.

DSP (Demand-Side Platform):

• Automation and technology. DSPs leverage advanced technology to automate the purchasing of ads, using sophisticated algorithms to optimize both the bidding process and the placement in real-time;
• Advanced targeting. DSPs offer intricate targeting options that allow advertisers to precisely tailor their campaigns based on detailed audience demographics and behavior insights;
• Budget efficiency. DSP systems help advertisers maximize their ad spend, reducing waste and enhancing the effectiveness of campaigns through strategic bid management and performance analytics.

Difference between ad networks and DSPs

The distinctions between an ad network and a DSP are outlined in the comparative table below.

Examples of Ad Networks and DSPs

Many ad networks focus on particular verticals, offering tailored advertising solutions that are optimized for specific industries. For example, gambling ad networks are tailored for the casino industry and usually have higher entry barriers due to strict regulations and high-value transactions. If you are on the lookout for profitable offers, swing by gambling CPA networks. 

Sweepstakes ad networks are ideal for beginners. They offer lower entry thresholds and are an excellent starting point for those new to affiliate marketing. They typically involve promotions where users can win prizes, making them attractive for broad audience engagement. 

Examples of renowned ad networks:

1. RichAds;
2. Kadam;
3. HilltopAds;
4. DAO.ad;
5. PropellerAds;
6. Evadav;
7. Adcash;
8. Galaksion;
9. AdProfex;
10. Adsterra;
11. Traforama.

Seek for more ad networks and their reviews on our website!

Just as ad networks, DSPs also specialize in the various niches: Adult, Nutra, Finance, mVas and etc. 

Examples of renowned ad networks:

1. Outbrain;
2. AppNexus;
3. Racuten;
4. AdRoll;
5. Centro;
6. LiveIntent;
7. AdXcel.

DSP vs Ad network: What to Choose

When deciding whether to use a DSP or an ad network, consider the following factors:

• Complexity of campaigns. If your campaigns require highly detailed targeting and dynamic optimization based on real-time data, a DSP is more suitable. For simpler, broad-target campaigns, an ad network may suffice;
• Technical resources. Evaluate your team’s technical expertise. DSPs require a good grasp of online advertising industry, while ad networks are more accessible for those without specialized knowledge;
• Budget. Consider the overall budget, including not just the cost per click but also the potential for ad spend efficiency. DSPs can offer more efficient use of budget through precise targeting and optimization, whereas ad networks might provide more straightforward cost structures;
• Campaign goals. Align your platform choice with your campaign goals. For reaching a broad audience with less specified criteria, ad networks are ideal. For campaigns where ROI is closely tied to reaching specific user segments, opt for a DSP.

Anna Mardas

Anna Mardas brought together her background as a copywriter in digital marketing. Now, she's got a solid grasp on affiliate marketing, especially when it comes to understanding the following niches: Gambling, Adult, Dating, Sweepstakes and Crypto. Anna stands out for her thorough research and insightful reviews of ad networks, offering her readers valuable knowledge.