A demand-side platform (DSP) is a system that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface. Real-time bidding for displaying online advertising takes place within the ad exchanges, and by utilizing a DSP, marketers can manage their bids for the banners and the pricing for the data that they are layering on to target their audiences. Much like Paid Search, using DSPs allows users to optimize based on set Key Performance Indicators such as effective Cost per Click (eCPC), and effective Cost per Action (eCPA).
DSPs are unique because they incorporate many of the facets previously offered by advertising networks, such as wide access to inventory and vertical and lateral targeting, with the ability to serve ads, real-time bid on ads, track the ads, and optimize. This is all kept within one interface which creates a unique opportunity for advertisers to truly control and maximize the impact of their ads. The sophistication of the level of detail that can be tracked by DSPs is increasing, including frequency information, multiple forms of rich media ads, and some video metrics. Many third parties are integrating with DSPs to provide better tracking.
One of the core appeals of using a DSP as opposed to booking advertising directly with a website is that is places the control in the hands of the advertiser or their agency. Previously you would place an order for advertising at a fixed price and the control for delivering against it sat with the website owner. When trading programmatically via a DSP the advertiser is free to activate and pause their campaigns at will, and also increase or decrease how much they are willing to pay at any point.
DSPs also allow advertisers the technology to make sure they only bid when a user or a placement meets certain criteria. This could be quality of the advertising placement, the website it is on, or by overlaying third party data to identify people who fall into their target audience.
DSPs are commonly used for retargeting, as it is able to see a large volume of inventory in order to recognize an ad call with a user that an advertiser is trying to reach. The percentage of bids that are won over the bids that were submitted is called a win rate.
The counterpart to the DSP is the SSP, the supply side platform. Website publishers use the SSP to tap into the advertising exchange to sell their inventory in the same way advertisers use the DSP.
Types of programmatic buys
- Preferred Deal: No auction, set CPM, non-guaranteed inventory
- Programmatic Guaranteed: No auction, set CPM, guaranteed inventory
- Private Marketplace: Real time bidding, price floor, select group of publishers, your advert will only appear on the website the PMP is set up with
- Open Exchange Buy: Real time bidding, variable cpm, open to all publishers, your advert could appear on any website with access to the exchange
- AdsWizz (AudioMatic)
- Adobe Media Optimizer (formerly Efficient Frontier)
- DoubleClick Bid Manager (DBM) (originally Invite Media Bid Manager)
- "How an ad is served with real-time bidding". Internet Advertising Bureau.
- "Demand Side Platforms (DSP) - A Complex New World". Affiliate Marketing Training, Guides & Tips | Mobidea Academy. 2016-07-01. Retrieved 2016-11-24.
||This article includes a list of references, but its sources remain unclear because it has insufficient inline citations. (April 2015) (Learn how and when to remove this template message)|
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