What Is a DSP and How Does It Work?
Operation of a Demand Platform
A Demand Platform [DSP] is a system for advertisers to buy and manage Advertising inventories from multiple ad exchanges via a single interface. This is normally done as a real-time auction process, which makes the buying and selling of ads cheaper and more reliable.
Today, the term “purchase” has been replaced by the term “request”. On the other hand, publishers and media owners are now seen as a “supply side”.
Thus, we have the DSP (Demand-Side Platform), used by advertisers to buy advertising inventories and the SSP (Offer Platform), used by publishers and owners media to sell their available advertising inventory.
How does a PSD work?
The operation of a PSD is very high technical, in simple terms, a DSP connects to advertising exchanges, where tons of publishers have made available their advertising inventories, allowing advertisers to purchase inventory locations available on a multitude of impression – based mobile publisher and mobile application websites.
Prices for these impressions are determined by a real time bidding process (RTB), which takes place in milliseconds, when a user loads a web page or interacts with an application.
Different from the traditional ways of buying media, with a DSP, there is no longer any need for a human to negotiate prices with publishers, as all this is done automatically. The impressions will simply be won by the highest bidder.
What is the difference between ad networks and DSPs?
Advertising Networks allow advertisers to purchase inventory ads in bulk rather than only one impression at a time. In other words, advertising networks collect advertising inventories from different publishers, group them together and sell them in installments to advertisers. However, not all ad networks support real-time bidding (RTB).
DSPs are unique because they offer the same features as ad networks, with a series of audience targeting options. The advantage of DSPs on ad networks is that they allow advertisers to bid in real time on ads, run ads on a multitude of platforms, track and optimize, all under the same interface.
The options offered by a DSP are as follows:
Geographic TargetingDemographic TargetingTarget TargetingCriteria TargetingReceive TargetingRe-targeting and more.
DSPs are also used for retargeting campaigns. This is possible because they are able to handle large volumes of advertising inventory and recognize the ad requests from an ideal target audience targeted by the advertiser.
DSP Self-Service Complete VS
There are two types of DSPs that you should be aware of. Some DSPs offer a self-service platform, which is a great way to manage your advertising campaigns. Then there are managed or complete DSPs, which can be an expensive option.
The advantage of using a self-service DSP is its lower cost. You do not have to commit a big initial advertising budget to start. That said, you must be responsible for targeting, bidding, budgeting, and optimizing your ad campaign. Some advertisers prefer to use a self-service DSP because they prefer to manage their campaign in their own way.
In addition, full-service DSPs provide account managers who will spend their time managing your campaign. With a full DSP, you rely on the Account Manager for the success of your campaign, planning, budget allocation and choice of targeting options.
A full DSP is usually more expensive to have to commit to a minimum advertising budget per campaign. Choosing to opt for a full DSP means that you lose control of your campaigns. However, there are also advertisers who prefer this option because they do not want to dwell on a technical job.
What is a DMP?
A Data Management Platform (DMP) is a platform that stores audience data, usually from multiple sources. It allows advertisers to create target audiences for their campaign based on third-party and third-party audience data.
A DMP acts as a single platform that consolidates the online and offline data of different advertisers, creating demographic, behavioral and affinity segments. which are then used as targeting options in digital advertising. Performance data from live campaigns is then returned to the DMP, improving the accuracy of the data.
Most DSPs generally incorporate a DMP to provide advertisers with highly accurate audience targeting options. You will find options for using a DMP in a self-service DSP interface.
DMPs are becoming more important to advertisers because they allow advertisers to reach their specific target markets while reducing advertising waste. ]
Main Demand Side Platforms (DSP)
Each DSP has different characteristics and capabilities. For example, different targeting and inventory options for different types of traffic, such as desktops and mobiles. Most DSPs work with dynamic bids based on maximum CPM, set by the advertiser.
Some of the major DSPs we work with are:
Have we forgotten something in this post? For any questions, just reach out to us and we will be happy to help you.