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A '''demand-side platform''' ('''DSP''') is a system that allows buyers of digital [[advertising inventory]] to manage multiple [[ad exchange]] and [[data exchange]] accounts through one interface.<ref name="IAB1">{{cite web |
A '''demand-side platform''' ('''DSP''') is a concept that combines various [[software]] solutions for advertisers (or [[Advertising agency|advertising agencies]]) to automate the process of buying and selling [[ad impression]]s in real time.<ref name="IAB1">{{cite web |
url=https://www.youtube.com/watch?v=-Glgi9RRuJs |
url=https://www.youtube.com/watch?v=-Glgi9RRuJs |
title=How an ad is served with real-time bidding |
title=How an ad is served with real-time bidding |
publisher=Internet Advertising Bureau }}</ref>
publisher=Internet Advertising Bureau }}</ref>


It provides digital [[advertising inventory]] with the dashboard, where the advertiser can manage their campaign using by defining the [[target audience]], bid amount, overall budgets, ad format, and other parameters, getting [[feedback]] about ad impressions and audience behavior.<ref>'Nishant Kadian, {{Cite web |date=2020-05-05 |title=Demand Side Platform (DSP): An Easy Explanation |url=https://medium.com/revx/demand-side-platform-dsp-an-easy-explanation-revx-15fefe380679 |access-date=2023-04-18 |website=Medium.com |language=en}}</ref>
[[Real-time bidding]] for displaying [[online advertising]] takes place within the ad exchanges, and by utilizing a DSP, [[marketer]]s can manage their bids for the banners and the pricing for the data that they are layering on to target their audiences.

⚫
Much like Paid Search, using DSPs allows users to optimize based on set Key Performance Indicators such as [[Pay per click|effective cost per click]] (eCPC), and [[Cost per action|effective cost per action]] (eCPA).


There are 2 types of DSP:
There are 2 types of DSP:
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* '''Full-service''' is a management model in which the planning, launch and optimization of an advertising campaign is carried out by specialists of the DSP platform.
* '''Full-service''' is a management model in which the planning, launch and optimization of an advertising campaign is carried out by specialists of the DSP platform.
* '''Self-service''' is a management model in which the planning, launch and optimization of an advertising campaign is carried out by specialists of the agency/advertiser.
* '''Self-service''' is a management model in which the planning, launch and optimization of an advertising campaign is carried out by specialists of the agency/advertiser.

⚫
Much like Paid Search, using DSPs allows users to optimize based on set Key Performance Indicators such as [[Pay per click|effective cost per click]] (eCPC), and [[Cost per action|effective cost per action]] (eCPA).


== Functionality of the DSP ==
== Functionality of the DSP ==

[[File:Adservingfull.svg|center|thumb|800px|[[Online advertising]] serving process]]
[[File:Adservingfull.svg|center|thumb|800px|[[Online advertising]] serving process]]
The functionality of the DSP often depends on the format of the media. For example, DSPs that advertise online can see how people behave after viewing an ad, whereas this is not be possible in outdoor advertising <ref>{{Cite web|date=2021-04-13|title=QMS’ pDOOH Platform Proving Campaign Attribution|url=https://www.bandt.com.au/qms-pdooh-platform-proving-campaign-attribution/|access-date=2021-07-22|website=B&T|language=en-US}}</ref> or television and radio, where the advertising constitutes a one-to-many approach.<ref>{{Cite web|author1=Rany Ng |author2=Anish Kattukaran|date=March 2015|title=Evolution of TV: The Promise of Programmatic TV|website=Think with Google |language=en |url=https://www.thinkwithgoogle.com/marketing-strategies/video/evolution-of-tv-programmatic-tv/}}</ref>
The functionality of the DSP often depends on the format of the media. For example, DSPs that advertise online can see how people behave after viewing an ad, whereas this is not be possible in outdoor advertising <ref>{{Cite web|date=2021-04-13|title=QMS’ pDOOH Platform Proving Campaign Attribution|url=https://www.bandt.com.au/qms-pdooh-platform-proving-campaign-attribution/|access-date=2021-07-22|website=B&T|language=en-US}}</ref> or television and radio, where the advertising constitutes a one-to-many approach.<ref>{{Cite web|author1=Rany Ng |author2=Anish Kattukaran|date=March 2015|title=Evolution of TV: The Promise of Programmatic TV|website=Think with Google |language=en |url=https://www.thinkwithgoogle.com/marketing-strategies/video/evolution-of-tv-programmatic-tv/}}</ref>

Revision as of 18:48, 18 April 2023

A demand-side platform (DSP) is a concept that combines various software solutions for advertisers (or advertising agencies) to automate the process of buying and selling ad impressions in real time.[1]

It provides digital advertising inventory with the dashboard, where the advertiser can manage their campaign using by defining the target audience, bid amount, overall budgets, ad format, and other parameters, getting feedback about ad impressions and audience behavior.[2]

Much like Paid Search, using DSPs allows users to optimize based on set Key Performance Indicators such as effective cost per click (eCPC), and effective cost per action (eCPA).

There are 2 types of DSP:

  • Full-service is a management model in which the planning, launch and optimization of an advertising campaign is carried out by specialists of the DSP platform.
  • Self-service is a management model in which the planning, launch and optimization of an advertising campaign is carried out by specialists of the agency/advertiser.

Functionality of the DSP

Online advertising serving process

The functionality of the DSP often depends on the format of the media. For example, DSPs that advertise online can see how people behave after viewing an ad, whereas this is not be possible in outdoor advertising [3] or television and radio, where the advertising constitutes a one-to-many approach.[4]

DSPs incorporate many of the facets previously offered by advertising networks, such as wide access to inventory and vertical and lateral targeting, with the ability to serve ads, real-time bid on ads, track the ads, and optimize. This is all kept within one interface that allows advertisers to control and maximize the impact of their ads. DSPs track frequency information, several forms of rich media ads, and some video metrics.

Many third parties are integrating with DSPs to provide better tracking. In addition, DSPs use advanced price reduction algorithms, commonly known as bid shading, to help advertisers procure ad impressions for a lower CPM in the first-price auction.

DSPs are commonly used for retargeting, as it is able to see a large volume of inventory in order to recognize an ad call with a user that an advertiser is trying to reach.

Types of programmatic buys

  • Preferred deal: No auction, set CPM, non-guaranteed inventory
  • Programmatic guaranteed: No auction, set CPM, guaranteed inventory
  • Private marketplace (PMP): Real time bidding, price floor, select group of advertisers
  • Open exchange buy: Real time bidding, variable CPM, open to all advertisers

Examples

See also

Notes

  1. ^ "How an ad is served with real-time bidding". Internet Advertising Bureau.
  2. ^ 'Nishant Kadian, "Demand Side Platform (DSP): An Easy Explanation". Medium.com. 2020-05-05. Retrieved 2023-04-18.
  3. ^ "QMS' pDOOH Platform Proving Campaign Attribution". B&T. 2021-04-13. Retrieved 2021-07-22.
  4. ^ Rany Ng; Anish Kattukaran (March 2015). "Evolution of TV: The Promise of Programmatic TV". Think with Google.


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