What is Demand Side Platform
A demand-side platform (DSP)is software used by advertisers to buy mobile, search, and video inventory from a marketplace on an impression-by-impression basis from publishers via supply-side platforms (SSPs) and ad exchanges . DSPs enable media buyers (advertisers and agencies) to purchase a range of inventory from many different publishers all from one user interface.
How does DSP work?
Demand-side platforms are used by media buyers to replace manual ad buying with an automated, real-time bidding platform. The whole process can be summarized in the following steps:
Step 1: The media buyers selects their target audience and uploads the creatives they want to display.
Step 2: DSP makes the inventories ready through integration with ad exchanges and supply-side platforms.
Step 3: Once there is a chance for ads display, the platforms offer the ad impression to the DSP, which sends a bid request to DSP.
Step 4: According to the ads targeting, DSP makes decision to bid or not for this impression.
Step 5: The media buyers' bid competes with other advertisers for the ad impression placing bids in real-time.
Step 6: Only if DSP wins the bid, DSP gets the chance to buy the impression and the ad is shown on the publisher’s inventory.
This whole process is conducted in milliseconds when user visits the publisher’s App or Website.
Why use DSP?
Efficiency: If you’re managing campaigns across many networks, a DSP makes sense to use. This way, everything is just in one dashboard.
Data: DSPs partner with third-party data providers to offer media buyers as much information as possible. Often it’s more than a single network can provide. Additionally, many DSPs allow media buyers to import their own data from a CRM or a DMP (data management platform).
Targeting: With more data comes, DSP is the good choice for audience targeting. Better targeting means more personalized ads and post-click landing pages, which means a higher likelihood of conversion.
High-quality inventory: DSPs will have access to the major networks and then some. If you’re after more premium inventory, a DSP may be what you’re looking for. Some may have more access than others, though, so it’s important to find out before you pick one.