When ad buyers set their ad campaigns in the DSP, they can benefits from their 1st party data, that is all the info already owned by them, which detects the target audience profiling.
When the campaign starts to deliver, the same campaign data become 1st party info, usually collected by the DMP.
Buyers data is also integrated with the data provided into the DSP, which is fueled by 3rd party data providers which become data exchanges if the same data they provide is shared between other ad buyers using the DSP to traffic the ad campaigns.
Data providers sell cookies and identifiers to DSPs, so they can better optimize the campaign delivery and budget.
DSPs are data exchanges too – they analyze other external factors such as weather, the semantics of the page or social sentiment, etc. All these criteria are intended to better target the audience.
But ad targeting is changing. Today, many DSPs already enable granular targeting through other parameters (site whitelists, content categories, keywords, location, …) to support advertisers for the new upcoming media landscape.
The current momentum toward a more secure, 1st-party data-driven ecosystem is an acceleration in the right direction for marketers to create a digital environment the public will choose to support.