WTF is a Demand-Side Platform?


It has never been so easy to buy and sell ads as nowadays. Some time ago, it could take days or weeks to launch an advertising campaign. But now, it can be done almost instantly with the help of a demand-side platform or DSP, which allows for so-called programmatic advertising. 

What is a DSP?

A DSP is a kind of software developed for marketing specialists, so they can purchase and manage different types of ads, including mobile, video and search ads, through a single interface. Almost no manual actions are needed to buy ad inventories because AI bids on them in real time. Hence, demand-side platforms make the advertising process more efficient and near-instantaneous. However, these are not the only benefits of a DSP. Let’s consider more advantages below!

Why implement a DSP in your work

DSP Marketing

If you  hesitate about investing in a demand-side platform, read what you can get from using this solution!

High efficiency 

It’s a big challenge to manage multiple campaigns across different networks. As you need to switch platforms, you lose a lot of time which could be spent on more important things. A DSP allows you to organize all your marketing campaigns on one platform. In other words, you can adjust several projects from one dashboard. As a result, everything gets much faster, so your efficiency grows. 

Accurate targeting

All marketing experts know the role of targeting in their job. In fact, targeting can make or break your advertising campaign. If it’s not set in the right way, all your efforts won’t bring desired outcomes. A demand-side platform ensures better targeting and increases your chances for marketing success. What exactly does it mean? Well, with a DSP advertising, you can create more personalized ads and landing pages. The statistics show that personalization helps to boost conversions, which is the main goal of any campaign. Consequently, the revenues also grow thanks to more accurate targeting. This is probably one of the major advantages of using a DSP. 

Better support 

How many times have you had a situation when there was a problem you couldn’t solve on your own? Chances are it happened pretty often. No matter what project you have you may need support in your job. Especially when it comes to using tech tools, not everything depends on your skills and knowledge. Luckily, demand-side platforms usually offer support that goes far beyond traditional approaches. Most providers help users to solve even the most complicated situations and set everything up so they get what they want from a marketing campaign.

More data 

The lack of data about potential customers is one of the biggest difficulties you may face as an advertising specialist. If you can’t gather enough information about people you are going to target, you risk wasting your advertising budget. This issue can be solved with the help of a DSP. Most demand-side platforms partner with some third-party data providers. Hence, they can offer advertisers as much helpful information as possible. The amount of DSP data is significantly bigger than a single network can share. Besides, you can import your own data from a CRM if needed. 

The functioning of a DSP

The structure of a DSP includes an integration system, so-called bidder, ad server, campaign tracker, reporting database, user data and user interface. Each element has its own unique functions. But to make things easier, let’s consider how a DSP works in general. 

Demand-side platforms are not linked to individual networks like Google Publishers or Instagram. In fact they’re absolutely independent. Being a kind of a third party software, they help users to organise all the processes related to advertising. Is important to note that DSPs don’t own any media. They also don’t purchase it directly from publishers. 

The first function of a DSP is to communicate with a supply side platform through an advertising exchange. After that, a supply-side platform allows publishers to list a certain inventory on the ad exchange. To implement this, it communicates with a DSP about impression bidding. If a certain impression is very valuable to you a DSP bid will be higher. Bidding largely depends on how your desired impression is valuable to other advertisers and what budget they have. 

In simple words, a DSP connects to ad inventory supply sources with a multitude of publishers and makes automatic bids to buy an ad for you. Using a DSP, you can collaborate with both web and in-app publishers. The most popular of them are Facebook, LinkedIn and Instagram. 

Wrapping up

A demand-side platform is a great solution for advertisers to purchase various types of ads. It makes things much easier and saves a lot of time. Generally speaking, DSPs have transformed a marketing domain to some extent.


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