What is Demand Side Platform (DSP) ?

Demand Side Platform or in short DSP is a programmatic software used by advertisers to buy ads from publishers. It also helps in tracking the ad performance.

DSP helps advertisers to buy ad impressions in ad exchanges like double click, admob…etc .

Here, if two or more advertisers are interested in a particular ad inventory, then the winner is determined through auction on a real time bidding process.

 

demand-side-platform

 

How DSP Works?

Advertisers automate the process of buying ads manually with the help of DSP software. DSP works on the basis of optimized algorithms also called as decisioning engines.

These algorithms are determined by the advertiser or ad agency who are using DSP.

For example, if you are the advertiser and you want to target a specific category of users belonging to a particular location and have a particular interest.

let’s say the location is “Canada” and interest is “people who are searching for jobs”.

Now, DSP creates an algorithm for your requirements by using users search data and finds you the best publishers ad inventory which meets all your criteria.

In this case website with the majority of users from Canada who are searching for jobs will be chosen and your ads gets published on those websites.

As said earlier if there are two or more Advertisers targeting the same website then the winner is chosen on real-time-bidding basis.This bidding process is also managed by decisioning engine of DSP

You also get a complete report on the performance of your ad campaigns.

 

Difference between DSP and Ad Network

The major difference between DSP and ad network is user targeting capabilities and cost.

Unlike ad networks DSP considers a lot of factors while targeting users.It is also easy to maintain and track the performance of ad campaigns and the cost involved is also way more less compared to ad networks.

In a way DSP is an extension of ad network, DSP has all the features of a ad network whereas ad network lacks many features of DSP.

In DSP publishers directly sell their inventory to the advertisers.

 

Advantages Of Using Demand Side Platform

 

Return Of Investment (ROI):

The cost involved is less and ROI is also very high when compared to other modes of advertising.

Transparent

The process involved is highly transparent and it is a win-win for both publishers and advertisers.

Real time bidding and decision engine helps the advertiser and publisher to make the best of their available resources.

Technology

The whole process works on user based programmatic algorithm, this makes the process even more easier and accurate.

Track

Tracking the performance of ad campaigns is easier for both publishers and advertisers.

 

Best Demand Side Platforms Available Right Now

In recent times a lot of ad networks are converting to DSP, out of them the most notable ones are:

Invite Media

Google’s invite media is a Demand Side Platform which uses bidmanager from double click.

DataXu

Dataxu founded in 2009 uses a combinatorial algorithm which was originally developed for NASA’s mars mission.

Turn

Turn.com is another reputable marketing platform founded 2004 it provides high end integrated solutions for digital marketers.

 

Demand Side Platform: What is it and How it works?

One thought on “Demand Side Platform: What is it and How it works?

  • December 19, 2016 at 4:24 am
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    Great blog you have here but I was curious about if you knew of any message boards that cover the same topics talked about here? I’d really love to be a part of group where I can get advice from other experienced individuals that share the same interest. If you have any suggestions, please let me know. Cheers!

    Reply

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