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Is there a difference in the price regarding which DSP I use (7)


12-25-2015 03:47 PM #1 mkey11 (Member)
Is there a difference in the price regarding which DSP I use

Hey there,

I am just wondering if there is a difference between the prices in regard which DSP I am using. For example can I get cheaper bids/CPM if I use Go2Mobi vs. Sitescout at the same exchange/placement?

Or is pricing purley based on demand of the placement? If there is no difference, which DSP should I choose then? The one I am most used to? I mean what makes a good DSP then, if the price is the same?

Thanks!

Best,
mkey


12-25-2015 03:53 PM #2 wiifmdude ()

Very good question!!

Hopefully someone will tell you!

I'm also wondering where/how the DSP make their money... is it on the CPM price ? (in which case bidding $1 CPM at one DSP wouldn't be the same as bidding $1 at another DSP if both DSP don't take the same margin).


12-25-2015 05:52 PM #3 cmdeal (Veteran Member)

Of course there are price differences between DSPs ...


12-25-2015 09:13 PM #4 matuloo (Legendary Moderator)

Of course, if nothing else, the different clientele of each DSP will affect the prices


12-26-2015 11:05 AM #5 mkey11 (Member)

Quote Originally Posted by cmdeal View Post
Of course there are price differences between DSPs ...
Thanks for your answer...could you explain why? I see the DSP only as a tech provider. So some tech is more expensive than other tech?


12-26-2015 11:17 AM #6 matuloo (Legendary Moderator)

Think about it like this, in a very simplified way, a DSP has access to automated trading platforms where they compete for traffic with other DSPs, once they win the auction, the particular impression is theirs. They can also make private deals with large publishers, purchasing traffic packages, so lets say a fixed amount of impressions. So now we know how they acquire the impressions.

What they do with those impressions is up to the particular DSP now and thats where the price differences start. They can set a minimum bid different than other DSPs. They might have private deals with large buyers already, which will inflate prices. They can offer deeper targeting for a premium price. They could have their own monetization model for some of the traffic and wont sell it cheaper than what they make on their own etc etc ...


12-26-2015 11:39 AM #7 cmdeal (Veteran Member)

Quote Originally Posted by mkey11 View Post
Thanks for your answer...could you explain why? I see the DSP only as a tech provider. So some tech is more expensive than other tech?
McDonald's gets its beef from cows. Gordon Ramsay gets his beef from cows.

Will you end up pay more for your hamburger at Gordon Ramsay's than at McDonald's?

Of course.

DSPs are not charities. They are in business to make money.


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