A Deep Dive into DSPs: How They Work and Why You Need Them - ADAS - Ad Demand And Supply

Demand Side Platforms (DSPs) have revolutionized the way advertisers purchase ad inventory and reach their target audience. Programmatic advertising is a way of buying ad placements that is automated, using ad exchanges and other algorithmic software that allows for machine-driven buying of inventory. This article explains how DSP advertising works and what advertisers are really buying.

In this article, we’ll explore the definition of DSP advertising and programmatic advertising, the difference between DSP and Supply Side Platform (SSP), examples of DSPs, how DSPs make money, and a comparison between DSP marketing and Performance TV with MNTN.

Introduction

In the constantly evolving advertising world, technology is advancing at an unprecedented rate. Programmatic advertising and the tools that go along with it, such as DSPs, have made it easier than ever for advertisers to access ad inventory across publishers and reach their target audience. However, many advertisers still find it difficult to keep track of all the changes and technological advancements. This article aims to provide an in-depth understanding of DSP advertising.

DSP Advertising Definition and How it Works

A DSP is software that allows advertisers to buy ad impressions in an automated fashion. In simple terms, programmatic advertising has the same fundamentals as any kind of transaction – there is a buyer and a seller. DSP advertising is a tool used on the buying side, AKA the advertiser’s side, of the transaction when buying advertising impressions. This software allows advertisers to buy media placements across mediums, including display, video, mobile, and even Connected TV, as well as across different publishers.

Advertisers who use DSP advertising are able to set up their campaign, buying ad impressions from an ad exchange (a pool of impressions from various publishers) for a predetermined bid price. Additionally, they can use the DSP technology to target their audience, whether it’s by demographic (ex. Adults 18-34) or by interest (ex. Have purchased plant-based meat). DSPs use the bid price and audience targeting information to sift through inventory available from the ad exchange and select the best impressions available for your campaign.

Programmatic Advertising Definition

Programmatic advertising is a way of buying ad placements that is automated. Instead of the manual process of campaigns being bought, set up, and maintained by humans, programmatic advertising uses ad exchanges and other algorithmic software that allows for machine-driven buying of inventory.

Programmatic advertising allows advertisers to take ad buying into their own hands, allowing them to set up their campaign immediately and to track results in almost real-time. For publishers with ad inventory, it easily allows them to make these impressions available to advertisers without having to work with a multitude of companies directly.

The Difference Between DSP and SSP

A DSP definition can be better understood within the context of its counterpart – SSP. SSP stands for Supply Side Platform and is the other side of the transaction when it comes to programmatic ad buying. Publishers utilize a SSP to make their inventory available to advertisers, while advertisers use a DSP to plug into the ad exchange and purchase advertising.

The SSP allows publishers to add their inventory to exchanges and set a floor price, meaning that they can guarantee their inventory is sold for a minimum price that aligns with their business goals. So while advertisers use a DSP to try to get ads at the best (read: lowest) price for their desired inventory, publishers use SSPs to help ensure that they can sell their inventory at the highest possible price. The DSP and SSP work together to find a middle ground that works for both parties.

Examples of Demand Side Platforms

Now that we’ve answered the question “what is a DSP?” perhaps you want to check out a few concrete examples. Below is a list of some commonly used services:

1. The Trade Desk

2. MediaMath

3. Adform

4. ADAS DSP

5. Citeo

6. Doubleclick

7. Quantcast

8. AppNexus

9. AdRoll

10. TubeMogul

11. Adobe Advertising Cloud

12. DataXu

13. Rocket Fuel

These are just a few examples of DSPs in the advertising industry. Each DSP has its unique features and strengths, so it’s essential to do your research before deciding which one to use. It’s also worth noting that while DSPs are commonly used in advertising, they can also be found in other industries that require real-time data analysis and optimization, such as finance, healthcare, and telecommunications.