What is a DSP?
Demand-side platforms (DSPs), which are used by brands and agencies to buy impressions and manage campaigns, combine ad inventory from various sources, such as publishers' supply-side platforms (SSPs), ad networks, and ad exchanges, in various formats.
DSP Automation Simplies Media Buying
A type of software called a demand-side platform (DSP) enables an advertiser to purchase advertising through automation.
DSPs are effective marketing automation tools because they enable mobile advertisers to buy high quality traffic at scale with little friction.
Demand-side platforms: Why are they significant?
The most obvious reason why DSPs are crucial to marketing—and to automation in general—is that it frees marketers from having to invest time and effort in tasks that can be carried out by automation.
DSPs assist advertisers in quickly setting up campaigns and managing them without the need to manually contact hundreds of publishers with advertising offers.
This enables ad tech executives to devote more time to developing other important areas, like creative development and user base segmentation, in order to boost performance over the long term.
The ability to manage campaign performance in real time is another benefit. Advertisers can easily modify campaigns from DSPs without causing disruption, as opposed to having to wait for a campaign to expire.
This means that advertisers can pull campaigns that are underperforming to prevent further waste and can manage ad spend more effectively.
Additionally, because DSPs are automated, advertisers can easily scale their efforts. Prior to now, advertisers' attempts to grow could be hampered by manual processes.
DSPs make it simple for brands and agencies to purchase traffic from new publishers. This enables mobile advertisers to benefit from the mobile app economy's globalization.
1. Global Integration and Reach
Although most DSPs integrate with Exchanges, some of them do so while others do not offer access to premium inventory. While some DSPs begin partnerships with only regional publishers, others are connected to global Ad Exchanges.
Almost all DSPs enable media buying in multiple currencies and provide access to a variety of inventory on desktop and mobile screens throughout the world. It's critical to research the traffic verticals and ad formats the DSP supports before making a decision on a DSP.
2. Effective Audience Targeting
Without targeting, the demand-side platform wouldn’t be so effective. The platforms have really optimized the platform to leverage user data allowing brands and agencies to match products with audiences with ease.
DSPs can target:
According to demographics: geolocation, county, city, time zone, gender, marital status, income, level of education, language, and interests
Extended targeting made possible by integration with a DMP (Data Management Platform) which compiles first, second, and third-party data
According to device type such as desktop, mobile, tablet, gaming system, dongle, etc.
According to the geolocation, county, city, time zone
Advertising becomes even more individualized thanks to features like frequency capping (how frequently the same ad appears in front of the same user), dayparting (which time of the day), and other options.
The cookie-level retargeting will assist in locating and reminding the website visitors who did not convert but had previously visited your site.
Different types of data, such as exclusive first-party data or third-party data obtained from DMPs, may be used by each DMP platform (Data Management Platform). DSPs can integrate with DMPs to gain access to additional audience data necessary for retargeting and campaign optimization.
3. Brand safety and appropriate inventory
DSP platforms enable users to pre-define the type of inventory they will be buying. For instance, engagement rates for in-app ads are typically higher than those for mobile or desktop. Knowing this, a brand looking to increase engagement may decide to limit impression serving to apps.
Another illustration is the brand's desire to advertise the newest mobile game. Since the product isn't functioning on the desktop, it makes sense to display the creative in other apps.
4. Campaign Analytics and Reporting
Advertisers can monitor the effectiveness of their ad campaigns in real-time thanks to demand-side platforms. The majority of DSPs provide detailed statistical data on click-through rate, website traffic, page views, engagement rates, and other metrics.
A DSP collects data from all sources, regardless of the fact that the ad campaign is running concurrently on multiple Ad Exchanges. It then delivers it as a customized report that has been consolidated. Reporting makes it possible to more clearly define a strategy for upcoming campaigns and determine what works and what doesn't.
5. Effective even with lower budgets
Small and medium-sized businesses can start and modify their advertising campaigns thanks to DSP advertising. This action cuts down on the extra expenses that third-party service providers typically incur. Most DSPs allow you to launch a campaign with a few hundred dollars in your personal balance.
Budgets are normally distributed evenly and purchased based on the cost to deliver 1,000 impressions.
Inventory is sold at auction and paid for by the winning bidder at $0.01 over the next highest bid. Your auction rate needs to be managed by an experienced AdTech professional to ensure they are maximizing your ad spend and oppotunity.
The important thing to keep in mind is that media buying is an auction and competition and pricing play a role in outcomes. Be sure to work with an experienced team who can help you manage your campaigns.
The Top DSP Aggregators
Digital Magnet Media started back in 2019 and has been leading the marketplace in lowest prices and best service. Their free partner membership sets them apart from other vendors allowing access to small and medium-sized businesses.
