We have investigated the plasma properties of a dual magnetron system used for the deposition of transparent and conductive ITO films. The process properties of a bipolar and unipolar pulsed discharge were investigated while operating the targets in the transition mode. In general, in the bipolar pulsed discharge lower electron temperatures as well as one order of magnitude higher values of charge carrier density were observed compared to the unipolar pulsed discharge. Moreover, strong lateral variations of the charge carrier density in front of the substrate area were found. The influence of the plasma properties on global process parameters, especially on the p O 2–F O 2 curve of the transition mode, is discussed in terms of the dissociation of oxygen in the discharge.