What is Demand Side Platform (DSP) ?
Demand Side Platform or in short DSP is a programmatic software which is used by advertisers to buy ads from publishers and 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.
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.
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.
The whole process works on user based programmatic algorithm, this makes the process even more easier and accurate.
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:
Dataxu founded in 2009 uses a combinatorial algorithm which was originally developed for NASA’s mars mission.
Turn.com is another reputable marketing platform founded 2004 it provides high end integrated solutions for digital marketers.