What Is a DSP and How Does it Simplify Advertising? | AdStasher

What Is a DSP and How Does it Simplify Advertising?

Although programmatic advertising is designed to simplify the process of media-buying, the mechanism behind it doesn’t seem that simple. Num...

Although programmatic advertising is designed to simplify the process of media-buying, the mechanism behind it doesn’t seem that simple. Numerous abbreviations and complex schemes are often making it even more confusing, so for a better understanding, it is important to narrow the topic down and start with the key concepts. In this post, we are going to focus on the DSP - the very best friend of the digital advertiser within the programmatic landscape.

 

What is DSP? 

DSP is an abbreviation for a demand-side platform that serves as a part of a programmatic media-trading environment. It enables advertisers to purchase inventory they need based on specific criteria and launch advertising campaigns for both brand development and conversions. Within DSP advertisers can configure targeting and retargeting, choose multiple formats and channels, and get the most suitable ad placements for the desired prices in real-time. There are many types of DSPs, some of which are integrated into ad tech platforms, while some are completely independent (such as SmartyAds DSP). The same algorithms that enable media-buying at the DSPs are also used at Google and Facebook Ads.

On the other side of the programmatic landscape lie SSPs - supply-side platforms, which are dedicated to gathering publishers in one place and helping them sell their inventory and increase revenues. DSPs provide marketers and advertising agencies with access to several SSPs, ad networks, and ad exchanges to make the process of media-buying as fast and simple as possible.

 

How does the demand-side platform work? 

Once the advertiser has signed up at the DSP, it is time to set up a campaign and start bidding. To understand better how it operates, let's take a more detailed look at the process of programmatic media buying:

  • At first, the advertiser is choosing the campaign parameters, such as type of traffic, time and frequency, target audiences, blacklists, etc. At the same time, the publishers are adding their inventory via the SSP (supply-side platform) that sends requests to the ad exchange.

  • Next, the demand-side platform starts searching for a suitable inventory for the campaign and automatically sends bid responses to the ad exchange. The pricing is defined by the advertiser’s settings and user data. The process of such matching takes milliseconds, while the user waits for the website page to load.

  • The winner of the auction is defined based on the highest bid among advertisers and the final price is determined by the type of auction. Once there is a match, the deal is sealed and the user sees a targeted ad at the publisher’s website.

With complex programmatic algorithms, the whole process is automatized and takes less than a second to make a purchase. What are the benefits of using DSPs for digital advertisers?

Precise Targeting 

One of the core features within the demand-side platform is a wide range of targeting options. Thanks to this, advertisers can send their message precisely to the potentially interested website visitors, and the users get more relevant ads. There are several parameters by which marketers can segment their target audience:

  • Geolocation - countries, cities, regions, zip code, time zones or other areas defined by GPS;

  • Categories - a specific business vertical, matched with context and users’ interests;

  • Demographics - age, gender, marital status, level of income and education, etc;

  • Technical specifications - connection type, device, OS and browser;

  • Language - the one set as a default on the user’s device or browser;

  • Time - certain dates or days of the week, time of the day;

  • Frequency capping - how often can the same user get the same ad.

All these criteria can do a lot for the creation of highly individualized campaigns for several segments of the target audience. Each DSP may use different kinds and sources of data, so choosing the right DSP specialization is essential for successful targeting and retargeting within campaigns.

 

Global Reach 

Depending on the DSP’s specialization, advertisers can get access to specific types of inventory, such as premium, local, or remnant. Therefore, it is important to do some research and choose the DSP focused on the needed inventory when it comes to non-standard niches and requirements. At the same time, almost all of them integrate publishers on a global scale, allowing advertisers to choose the inventory supporting the right formats and based at any location of the world. Programmatic advertising created an unprecedented opportunity to connect media-traders from anywhere in the world and the DSP is the perfect tool to grab this opportunity.

 

Cost-efficiency and transparency 

First of all, the demand-side platform removes lots of manual work and intermediaries which significantly reduces extra costs. At the same time, it allows advertisers to customize and optimize their campaigns on-the-go, giving them much more control over the ad spending. DSPs work with precise pricing models, such as CPA, CPC, or CPM - the cost is defined by a specific number of actions or impressions which makes the whole process even more transparent and cost-efficient.

 

What are the major formats used at the DSP? 

Formats supported by the DSP usually vary depending on its specialization, but some of the most popular include: Banner ads - the most traditional and highly-customizable option suitable for almost any website or app. Video ads - a highly engaging and versatile format 5 times more effective than traditional ones, according to our research. They are especially good to showcase your product in more detail. Native ads - These ads are a great solution to banner blindness and ad blockers. Native ads perfectly mimic the web environment, so much that they often don’t even look like ads. Rich media - being the most engaging and trendy format, rich media vividly shows how advertising can be both fun and effective. Rich media ads can float, expand, or even serve as a mini-game, educating, and entertaining the user at the same time.

 

Conclusions

The demand-side platform is a key instrument for every marketer interested in programmatic advertising. It allows advertisers to buy the needed inventory within seconds and launch personalized cost-efficient campaigns without tons of manual work and extra intermediaries.

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2,4,google+,1,Gorillaz,1,Got Milk,24,Göteborg Film Festival,1,Graham Chisholm,1,Gramercy Park Studios,2,Grand Basel,1,Grand Clio,1,Grant Stinchfield,1,great ad campaigns,137,great ads,1303,great ads. Scrabble,2,great advertisements,22,great advertising,86,Great Clients,1,Great Guns,18,Great Southern Wood Preserving,1,Great Tastes of America,1,Green Ads,17,Green Bay Packers,2,Greenpeace,2,Grey Hoodie Company,1,Grey London,9,Grey Malaysia,1,GREY NY,21,Grey Poland,1,Grey Russia,1,Grey SF,2,Grimes,1,Groupon,3,Growing Up,1,GSD&M,1,GSM,1,GTB,1,GTB Brazil,1,GTB Roma,1,Guardians of Grub,1,gucci,3,Guerrilla Marketing,8,Guess,1,Guide to Christmassing,1,Guillermo del Toro,1,Guiness,1,GUINNESS BEER,9,guitar hero,1,Guns or Knives,2,Guter Stoff,1,Gutzandglory,2,Guy Barnea,1,Gymboree,1,Gymbox,1,Gyre9,2,gyro,1,H&M,1,H&M Erdem,1,H&R Block,1,H2oh,1,Haig Club,1,Hailey Bieber,1,HALO Trust,1,Hamish Rothwell,1,Hammerson,1,Hannah Cunnigham,1,Hans Anders,1,Hans Walor,1,Happydent,1,Harbin Beer,1,hardee's,1,HARIBO,2,Harley Davidson,2,Harrah's,1,Harry Dean Stanton,1,Harry Kane,1,Harry Rosen,1,Harry's,1,Hartford Insurance,1,Hartford Paralympians,1,Harvey Nichols,4,hasan & partners,1,Hatem El Akad,1,Haute,1,Havas,5,HBO,2,He-man,1,head and shoulders,5,Hearts & Science UK,1,Heathrow Aiport,1,Heidi Klum,1,Heimat,3,Heineken,45,Heineken Logo,1,Heinz,1,Heinz Beanz,1,Heisman House,1,Hell Pizza,1,HELL YEAH!,2,Help a Dane,1,Hennessy,2,Hennessy Paradis Impérial,1,Herezie,2,Herezie Group,2,Hermès,1,Hershey's,1,hersheys. rascal flatts,1,Hey World,1,HeyHuman,1,HI,1,higher education,2,Highland Capital Management,1,Highways Englad,1,Hill Street Beverage Company,1,History Will Be Made,1,Hive,1,Hjaltelin Stah,1,hockey,1,Hogarth,1,Holden Colorado,1,Holiday Ad,10,Hollywood Director,1,Hollywood Stars,1,Home Equity Bank,1,home furnishings,1,home insurance,1,Home Paternity,1,HomeEquity Bank,2,HomePod,1,honda,37,Honda Acccord,1,Honda Gold Wing,1,honda jazz,1,Honda motorcycle,2,Honey Birdette,2,Hong Kong,1,Honibe,1,Honor Roll,1,Hope on Wheels,2,Hornbach,2,Hornitos Tequila,1,HOT TUB STOPS HUNGER,1,Hot Wheels,1,hotel ad,2,Hotel Intimacy Guide,1,Hotels.com,1,hotwheels,2,House of Greenland,1,How Now Creative,2,hp,4,HP Touchsmart,1,HPE,1,HSBC,3,Huawei,2,Huawei Band 2 Pro,1,Huawei Mat 10 Pro,1,Hudson's Bay,2,Huggies,3,Hugh Jackman,2,Hugh Laurie,1,HULU,4,Hum,1,Human Forward,1,Human Made Stories,1,Humanaut,4,HUMANSEVEN,3,hummel,1,Hunter's,1,HUSH Studio,1,Husqvarna,1,Hype,1,Hypebeast,1,Hyrrs: Festive Hymns Made Feminist,1,Hyundai,9,Hyundai Elantra,2,Hyundai Genesis,6,Hyundai Kona,2,Hyundai Protect,1,Hyundai Sonata,4,Hyundai Veloster,1,I AM HERE,1,I Love You,1,I Love You America,1,I Move Me,1,I Will,1,iAds,1,IBM,7,ICA,1,ICEE,1,Iceland,1,Iceland Foods,1,Iceland Soccer Team,1,Icelandic Provisions,1,ICF Olson,2,Iconoclast,1,IDEA,1,Idea Farm,1,IDEA Summit,1,Idris Elba,1,Igloofest,1,IHOB,1,IHOP,1,ikea,51,Ikea Logo,1,Ilya Naishuller,1,IMA,2,image mapping,1,Image Work,1,IMC European Awards,1,In The Company of Huskies,4,India,16,Infiniti,2,Influence Agency,1,Information is Beautiful,1,ING,1,ING Bank,1,INGLOURIOUS BASTERD,1,Innerspace,1,Inniskillin,1,INNOCEAN,6,InnovAsian,1,InnoveLab,1,Institute of Communication Agencies,1,Institute of Management Accountants (IMA),3,insurance,2,Intel,3,Interac,2,interactive ads,5,Intermarché,4,International Advertising Association,1,International ECHO Awards,2,International Federation for Human Rights,1,International Rescue Committee (IRC),1,International Women's Day,4,Into Film,1,intu,1,ipad,12,iPad 2,2,iPad Pro,2,iPhone,72,iPhone 3G,1,iPhone 4,2,iPhone 8,2,iPhone 8 plus,1,iPhone App,2,iPhone X,5,Iphone Xs,2,iPod Nano,1,IPSO Logo,1,Ireen Wüst,1,Ireland,1,iris Jakarta,1,Irish Daily Mail Magazine,1,Isabel Muñoz,1,Isaiah Mustafa,7,isobel,1,Israel Ad,1,Issa Rae,1,It Takes a Village,1,It's Just a Phase,1,Italian,16,Ithaca College,1,ITV,2,ITV2,1,Ivan Larionov,1,J. Walter Thompson,6,J.J. Stratford,1,J.P. Wiser,1,Jack Daniel's,4,jack daniels old no 7,2,Jack Webster Awards,2,Jade,1,Jaguar,2,Jamaica,1,James Arthur,1,James Bond,3,James Dondero,1,James Hinchliffe,1,Jan Lucas,1,Jane Jin,3,Japan,8,Jaquar,1,Jason Derulo,1,Jason Witten,1,Jason Wu,1,JC Penny,8,JC Whitney,1,JD Sports,1,JD Williams,1,JEAN,2,Jeans Ads,2,Jeep,2,Jeff Bezos,1,Jeff Yeats,1,Jenga,1,Jennifer Aniston,1,jennifer Lopez,2,Jeremy Clarkson,1,Jerry Seinfeld,2,Jet.com,1,Jewel,1,Jif,1,Jillian Michaels,1,Jillz Cider,1,Jim Beam,1,Jim Downey,1,Jimmy John's,1,Jimmy Nelson,1,Jing Wei,1,JMP,1,Jo Motoyo,1,jobs,1,Jockey Underwear,2,Joe Biden,1,JOHANNES LEONARDO,1,John C Jay,1,John Goodman,1,John Lewis,5,John Lewis ads,11,John Lewis Christmas 2017,1,JOHN LEWIS XMAS 2008,2,john st.,5,John Wall,1,Johnnie Walker,7,Johnny Weir,1,Jollibee,1,Jon Hamm,1,Jon Reinfurt,1,Jonathan Glazer,1,Jones+Tino,1,Jonny & Will,1,Joon Airlines,1,Jordan,2,Joseph Kahn,1,Joseph Mann,1,Josephine Skriver,1,Joshua Ferris,1,Joy of Home,1,JP Morgan Chase,1,JR Smith,1,JuiceBar,1,Julia Hengel,1,Juliet,2,June's HIV+ Eatery,1,Jung von Matt/Limmat,1,Just Dance 2019,1,Just Eat,1,just like you,1,JustFly,1,Justin Verlander,1,JWT,5,JWT Amsterdam,2,JWT Atlanta,1,JWT Milan,1,K-Swiss,1,Kahlua,1,Kaiser Lachance Communications,1,Kalinka,1,Kampgrounds of America,1,Kansas City,1,Kansas City Chiefs,2,Kanye West,1,Karlie Kloss,1,Kat Graham,1,Kate Bosomworth,1,Kate Moss,1,Kate Spade New York,1,Kathryn Hahn,1,Katy Huang,3,Katy Perry,2,Kawhi Leonard,1,KBS,3,KEEPGOING,1,Kelia Moniz,1,Kellogg's,9,kelly slater,1,Kenan Thompson,2,Kendall Jenner,1,Kendrick Lamar,1,Kevin and Katie Carro,1,kevin bacon,1,Kevin Hart,1,KFC,12,KFC Japan Christmas,1,KIA,4,Kia Motors,22,Kia Stinger GT,1,Kilvington Grammar,1,KILZ,1,Kim Sae-jeong,1,KIND Snacks,1,Kinder Bueno,1,Kingsmill,1,Kit Kat,11,Kit Lynch-Robinson,1,KitchenAid,1,kleenex,1,KLM,3,Knouse Foods,1,Kobe Bryant,2,kohl's black friday,1,Koho,1,KOJOE,1,Kolohe Andino,1,Kona,2,Kopparberg,1,Korabiewice Shelter,1,Kraft Heinz,1,Kre8 Media,1,krow,3,Kruger,2,KSV,1,kwiff,1,Kyle Lewis,1,Kylie Minogue,2,L.L. 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Jordan,1,Michael Bay,1,Michael Buble,1,Michael Jackson,1,Michael Jackson Pepsi Ads,5,Michael Phelps,1,Michael Schumacher,1,Michel Foucault,1,michelin tires,2,Michelle Beadle,1,Michelob Ultra,2,Microsoft,49,Microsoft Classic Intellimouse,1,Midas Awards,3,middle east ad,3,Middle-earth: Shadow of War,1,Midnight,1,Mika,1,Mika Hakkinen,1,Mike Will Made It,1,Milan Fashion Week,1,Miley Cyrus,1,Military Officers Association of America,2,milk,7,Milk Marketing Board,2,Milky Way,1,Miller Lite,2,MILLER LITE 1 SECOND AD,2,Millie Bobby Brown,2,Milwaukee Bucks,2,Mindshare,1,MINI,17,Minnesota Wild,1,Miriam Wimmer,1,Mirriad,1,Misbehavin,1,MISS DIOR CHERIE,1,Missing Children Society of Canada,1,Missouri Lottery,1,Mister Sweat,1,Mistress,2,Mitchum,1,Mitesh Addhate,4,Mitsubishi,3,mixed martial arts,1,MKTG,1,MKTG Canada,1,MLB,6,MNSTR,1,mobile,7,mobile advertising,2,Mobile Vikings,1,Mobility Anthem,1,models,4,Moleskine,1,Mollie Bylett,1,Mollie Mills,1,Mom Jeans,1,Monopoly,2,Monster Bill,1,Monster Truck,1,MonsterBil,1,Monterey County Convention and Visitors Bureau,1,Montreal Children's Hospital,1,MOO,1,Moonpig,1,Morrisons,1,mortierbrigade,8,Most Likely To,1,Mother London,2,Mother Theresa,1,Motion Picture Television Fund,1,Motive Made Studios,1,Motorola,1,mountain dew,3,Mountain Equipment Co-op,1,Movember,1,Movement Strategy,3,MOVIE PROMOS,31,movie trailers,36,Moving Iage & Content,1,Movistar,1,Mox,1,Moz the Monster,1,Mr Kipling,1,Mr Sub,1,Mr. Robot,1,Mr. Wolf,1,Mtn Dew Ice,1,MTV,7,Mubrella Awards,1,much music,1,Muhammad Ali,1,Mullen and Lowe,1,Muscle Milk,1,Muse Communciations,1,Musea Brugge,1,music,175,Music of the Mind,1,music video,1,music videos,12,Musselman's Apple Sauce,1,Must Be Loud,1,Mustang GT,1,Mutt Film,1,MVP Puppets,8,MvVo Art,1,Myer's Australia,1,Myers,1,NAIL,7,nando's,2,Nantucket License Plate Project,1,Narrative,1,Nas,1,NASCAR,1,Nastya Timos,1,Natalie Portman,1,National Audubon Society,1,National Bank,1,National CASA/GAL,1,National Federation of the Blind,1,National Geographic,3,National Golf Foundation,1,National Park Foundation,1,National Post,1,National Safety Council,1,Nationwide Insurance,1,Nature Valley,1,Nature's Bakery,1,Nazionale della Moda Italiana,1,nba,45,NBA 2K19,1,NBA 2K20,1,NBCU Content Studio,1,Neel Majumder,12,NEER Motion,1,Neil Huxley,1,Nemo's Garden,1,NerdWallet,1,Nescafé,2,Nespresso,1,Neste,1,Nestlé,3,Netflix,1,New Balance,4,New Era,2,New Orleans Jazz & Heritage Foundation,1,New York Festivals,1,New York Festivals International Advertising Awards,1,new zealand,3,New Zealand Jerky,1,Newcastle Brown Ale,1,NewFest,1,Newport Beach Film Festival,1,News,7,Nexus Studios,2,Neymar Jr.,5,NFL,64,NFL Color Rush,1,NFL Foundation,1,NFL Gamepass,2,NFL London Games,1,NHL,14,NHS,1,Nice Shoes,1,Nick & Chloé,1,NIck West,1,Nick Wickham,1,Nick Young,1,Nicole + Felicia Coutoure,1,Nicole Kidman,1,Nicole Scherzinger,1,Nicos Livesey,1,Night Queen,1,nike,19,nike ads,87,NIkita Dragun,1,nineteentwenty,1,Ninjas,1,nintendo,6,Nintendo Labo,1,Nipsey Hussle,1,Nissan,1,NISSAN CROSSOVERS,2,Nissan Juke,1,Nissan Micra,1,NIVEA,1,No Frills,3,No Limits to Music,1,No Yolks,1,Noah Harris,1,Nokia,7,Nokia 5800,1,nokia N8,1,Nomex,1,NOMINT,3,Nong Poonsukwattana,1,noosa,1,Norah Jones,1,norte beer,1,North,4,North Carolina,1,Northwest RiverPartners,1,Norton,1,Nothing Bundt Cakes,1,Novak Djokovic,1,NRA,1,NSPCC,1,NutriBullet,1,NYCNext,1,oberlo,1,Observatory,1,ODD,1,Office of Baby,1,office politics,1,Ogilvy,8,Ogilvy & Mather,1,Ogilvy Johannesburg,1,Ohio Lottery,1,Oikocredit,1,Okaybro,1,Olaf Hajek,1,Old Navy,3,OLD SPICE,35,OLD SPICE.,7,OLIO,1,OluKai,1,Olympique de Marseille,1,One Club for Creativity,65,One Door,1,One Man Studio,1,One Screen Short Film Festival,1,One Show,4,One Team,1,OneMethod,1,OnePlus,1,OneRepublic,1,Onken,1,online campaigns,16,Only Vegas Moments,1,ONLYCH1LD,1,Opel,2,OpenTable,1,opera,1,Opération Enfant Soleil,1,Optima,2,Optus,1,Optus Sport,1,Orange,6,Orci,1,Oren Lavie,2,Oreo Cookie,17,Organic Valley,1,Organo 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AdStasher: What Is a DSP and How Does it Simplify Advertising?
What Is a DSP and How Does it Simplify Advertising?
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