Digital advertisement is gaining popularity every day!
But what’s more, is that ad buying and selling has changed a lot since the advent of digital ads. Agencies no longer need to spend hours in contracts, meeting to buy an ad.
With demand-side platform & supply-side platforms, ads have become much more efficient & quicker.
What is a Demand-Side Platform or DSP?
To put in simple words, a demand-side platform is a piece of software used to purchase advertising in an automated fashion. DSPs are most often used by advertisers and agencies to help them buy display, video, mobile and search ads.
The key purpose of DSP is to buy the impressions on the suitable inventory & show them to the user to meet the target requirements for optimal price.
What are the key differences between DSP & Ad networks?
It can be a bit confusing as both Ad Network & DSP offers targeting and the ability to reach a large pool of potential resources.
But here are a few differences:
| DSP | Ad Network |
| Multiple inventory sources, leading to several ad exchanges. | You choose which sites to buy. |
| It is generally used for programmatic sales. | It is a tool for direct media buying |
| Almost entirely automated | It involves a more manual routine. |
| Based on real-time bidding. | It is based on waterfalling (daisy chain) |
How does DSP actually work?
Basically, DSPs allow advertisers to buy impressions across a range of publisher sites but targeted to specific users based on information like their location, search behavior & so on.
Now, for the publishers, they make their ad impression available through ad exchanges. DSPs automatically decide which of those impressions it makes the most sense for an advertiser to buy.
For the price of these impressions, it is determined by a real-time auction, through a process known as real-time bidding. You see everything is automated without any need for a human salesperson to sit for hours to negotiate the price with buyers.
Why use DSP?
Using DSP has some major benefits which includes:
· Cost-effective
While buying traffic, media buyers already set a bid that they can afford to pay. DSP purchases the impression that ideally matches the media buyers’ requirements.
By this, the media buyers don’t have to pay excessive for the traffic. They can get way cheaper than say a print ad.
· Efficiency
DSP makes everything is adjustable from one dashboard.
· Better targeting
DSP allows advertisers to target their audience better. As DSP chooses the websites or platforms which would be suitable to the target audience of the buyer as with more data comes pinpoint targeting capabilities.
· High-quality inventory-
DSPs have access to major networks, so if you are looking for more premium inventory, a demand-side platform is something you should look out for.
Everything is done in milliseconds, as a user’s computer loads a webpage.
Is DSP replacing ad agencies?
In some sense, yes.
DSP works directly with advertising clients. So this considerably affects the agencies when it comes to buying media ads.
All of the things done by agencies is done automatically & within a very short span of time!
What are the most popular DSPs available in the market?
DoubleClick Bid Manager
DoubleClick Bid Manager, a Google product, is used by agencies, trading desks, and advertisers to get access to ad exchanges with a wide range of exclusive video, display and mobile inventory from Google.
It has a record of more than 100 ad exchanges & 1 billion websites with add that can run across desktop, mobile and tablet, multiple bidding strategies support and more.
Adobe Advertising Cloud
Although it is a cross-channel advertising platform, it also runs an independent DSP providing brand marketers with integration with the world’s best targeting, reporting and inventory partners.
Their major USP is their programmatic ad campaigns which can cover desktop, mobile, TV & offline out-of-home channels.
Amazon DSP
Formerly known as AAP or Amazon Advertising Platform, is a DSP that provides advertisers to display their ads from Amazon Inc.
With Amazon DSP, advertisers can easily reach audiences both on Amazon sites and apps as well as through its publishing partners and third-party exchanges.
AppNexus platform
AppNexus, New York-based company provides a platform for real-time advertising across multiple devices including mobile.
It offers a highly scalable ad serving to mobile & networks, multiple screen campaigns & most importantly customizable extensive targeting & reporting.
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