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Demand side platforms (DSPs) act as a central hub to manage all the data related to advertising campaigns. A DSP is used by advertisers to buy different types of ads (mobile, social, video, etc.) from a marketplace where publishers list advertising inventory. To be efficient, advertising teams need to target the right audience, at the right time, on the right channel. Since many companies compete to get their ads on the same channels, they have to bid on impressions to ensure they can reach their goals.
DSPs enable automated ad buying or programmatic ad buying. This type of software is integrated into multiple ad exchanges to enable advertisers to automate buying ads that may include banner ads on websites or mobile ads on apps. The automated bidding process, where ad placements are auctioned off within microseconds, is called real-time bidding (RTB). While DSPs help companies with all media-buying activities, it is also important to have personnel with advanced expertise in this field or work with external consultants or agencies.
What Does DSP Stand For?
DSP stands for demand side platform, and the term “demand” can be seen as synonymous with “buying”. These platforms help companies identify advertising opportunities across multiple ad networks and helps find the best prices for the targeted audience.
Mobile DSP
When searching for a DSP, some companies may want a specific DSP for mobile ad-buying capabilities. A mobile DSP is not a standalone product, but is part of and integrated with any robust DSP and is responsible for buying mobile ad inventory. A mobile DSP is focused on buying ads across varying apps, browsers, locations, and devices and also ensures that the advertiser’s creatives are displayed correctly and are optimized for mobile screens. These types of DSPs assist app publishers and app developers in offering available mobile impressions. That being said, buyers don’t need to purchase a separate DSP for desktop and mobile programmatic ad-buying.
Omnichannel DSP
Omnichannel DSPs enable companies to manage ads across multiple channels, like desktop, video, audio, OTT, etc. These types of DSPs help companies manage ad campaigns without having to switch between platforms.
Single-channel or niche DSP
These types of DSPs can serve the needs of businesses that only want to send ads on a specific channel. Single-channel DSPs can help small businesses that may have a lower budget or a more focused advertising strategy.
The following are some core features within DSPs that can help users in a variety of ways:
Other features of demand side platforms: API / Integrations, Contextual Targeting, Creative Optimization, Fraud Protection, In App Ads, Machine Learning Optimization, and User, Role, & Access Management.
Key benefits of DSPs include accelerating the process of buying online advertisements through direct interaction with web publishers, reducing spend on impressions that are not part of a target audience, gaining transparency in the advertisements that are purchased by knowing the demographics of every impression, and increasing ad conversion rates by putting ads in front of people who are more likely to click on ads, in turn increasing the return on ad spend (ROAS).
Some of the challenges advertisers face nowadays that can be addressed by DSP software are:
Omnichannel: Omnichannel is both a challenge and an opportunity for media companies. On the bright side, they now have more options than ever to target audiences, but this also makes it harder for them to find the right audience segments and promote content on their preferred channels. Companies cannot afford to invest in advertising on all possible channels and need to focus on the ones that are the most efficient.
Real-time tracking: Real-time performance tracking is critical to determine what content works on which channels. It also helps companies adjust their campaigns to make them more efficient or cancel advertising that is costly and brings little or no revenue. Since companies invest a lot of time and money in advertising, it is difficult for them to cancel campaigns even when they don’t seem to be very successful. Real-time data is therefore essential to determining when campaigns can be considered successful; it also enables companies to quickly react to any changes that may jeopardize their advertising efforts.
Brand safety: Brand safety is more challenging than ever, mostly due to technologies like social media which can disseminate information very quickly. Individuals and institutions also scrutinize brands, and it is very common that controversial advertising becomes viral and has a negative impact on the brand. The challenge with brand safety is that advertising content can be shared outside of the channels used by the company, which makes it almost impossible to retract.
DSP is used by advertisers employed by a company to help with its advertising strategy or agencies that manage advertising activities on behalf of the customer.
Marketing departments: Advertising teams or departments use DSP software to create advertising campaigns and implement them to target or retarget different types of audiences. They also need to track the performance of each advertising campaign and address any issues that may impact their performance.
Advertising agencies: Advertising agencies use DSP software to implement strategies defined with the customer. Agencies usually manage most advertising activities but may also collaborate with customers on some operations. They also provide customers with reports on the performance and costs of advertising campaigns.
For mobile ad campaigns focused on reaching audiences at scale with precise targeting and strong performance, leading DSP platforms include:
For advertising agencies managing diverse campaigns and clients, the most reliable DSP platforms combine scalability, precision targeting, and strong analytics. Top solutions include:
For e-commerce brands aiming to scale performance marketing, drive conversions, and reach high-intent shoppers across channels, leading DSP platforms based on G2 reviews include:
Related solutions that can be used together with DSPs include:
Supply side platform (SSP): SSP allows publishers to make money from their websites by creating and selling ad inventory to marketers on an impression-by-impression or visitor-by-visitor basis. SSPs are used in conjunction with publisher ad servers—either as a single product or two separate integrated products—that provide the functionality to manage ad inventory and traffic incoming ads. SSPs, in turn, give publisher ad servers the ability to sell their advertising inventory in real time through advertising exchanges or directly to advertisers’ DSPs.
Ad network software: Ad networks aggregate ad inventory from websites and apps and match it with advertiser demand to facilitate the digital advertising buying process. For advertisers, ad networks show them the inventory that is available to buy. For publishers, ad networks package together inventory to be useful to advertisers and yield the highest profit. Ad networks serve as a bridge between advertiser campaign management and publisher ad management software, with both sets of software needing to integrate with ad networks.
Creative management platforms: A creative management platform (CMP) combines a variety of display advertising tools utilized by marketing and advertising professionals into one cohesive, cloud-based platform. These tools include ad design builders capable of making dynamic creative in bulk, cross-channel publishing, and marketing data collection and analysis. While most CMPs can be used to create and deploy full marketing campaigns on their own, many provide functionality or integrations that allow users to concurrently utilize another DSP to provide extra channel coverage.
DSP can be complicated and expensive to implement and maintain. The structure of this type of software can vary from one vendor to another, as well as the way products are sold. Furthermore, vendors provide services to increase DSP adoption and integrations with other software solutions, which can make their offerings even more complicated.
Bid duplication: DSPs are starting to work against bid duplication, but this takes place when SSPs send more than one bid request for a single impression. This represents a single user as two separate users and removes the ability for DSPs to set a capacity for ads served at the requests of the advertiser. In short, bid duplication results in advertisers unknowingly bidding against themselves, driving up the price they pay.
Data privacy: As more and more data privacy regulations are created, DSPs are under more pressure to adapt as this type of software relies on audience data to target ads. Due to privacy regulations, personal data can only be collected and used with explicit permission from consumers.
The first step in evaluating DSPs, like a lot of software, is to determine the particular company goals and what outcomes are expected to be achieved.
When evaluating DSP software options, it’s important to ask a few qualifying questions that may be important to the business and end goals. Some of these questions can include:
When comparing DSPs, businesses should compare targeting capabilities, available inventory types, data privacy maintenance, anti-fraud measures, pricing, available integrations i.e., with a data management platform (DMP), and ad reporting capabilities.
Conduct demos
When conducting demos, buyers must make sure to narrow it down to only a few DSP options, the ones that align with the specific company goals. For example, if the company only wants to advertise on one channel, it may not be necessary to evaluate and demo omnichannel DSPs. Also, it is important to ensure all internal stakeholders are involved in the demos to provide feedback.
Who is Responsible for Demand Side Platform (DSP) Implementation?
Internal marketing or advertising teams can work with the software vendor they have selected to implement a DSP to start programmatically buying ads. If a company doesn’t have an internal advertising team, or marketing team that oversees digital advertising, it can hire a digital advertising agency to implement, and also manage, a DSP.
What Does the Implementation Process Look Like for Demand Side Platform (DSP)?
For a DSP to start working, it must integrate with varying supply sources (i.e., SSPs and ad exchanges). The internal teams or ad agency implementing this software must ensure that the DSP can natively integrate with all desired ad exchanges and SSPs to serve ads on the channels that the company has identified.
Unification or omnichannel DSPs
More and more advertisers are opting for DSPs that can buy different types of ads across a variety of channels. This allows advertisers to keep all of their advertising activities in one place.
Transparency
Marketers are expecting even more transparency when it comes to media or ad buying, and want more clarity from DSPs and SSPs when it comes to the ad buying process. Because of this, DSPs aim to help marketers understand where their spend and advertising dollars are going to help achieve a better return on investment.