What is a demand-side platform? Theory and practice for your business

What is DSP?

DSP is a group of technology platforms that enable the purchase of ads made available in the programmatic ecosystem. DSP allows the buyer to set (and possibly change in real-time) campaign parameters and optimize the purchase for a specific purpose (e.g. cost per click, conversions, etc.).

The most important parameters that can be managed are:

• maximum CPM (i.e. cost per thousand impressions) that the advertiser wants to pay for an impression
• the place of emission (domains, categories, operating systems) on which the ad is to be emitted (or, conversely, exclusion of certain undesirable domains)
• distribution of emissions over time (selection of days or specific time slots)

DSP platforms allow targeting, i.e. determining which users the ad should be shown to. The possibility of targeting advertising to specific groups of users depends on the data available on the platform.

Depending on the specific technology, the top demand side platforms may also offer other targeting options, such as depending on weather conditions or synchronizing with the broadcast of advertising on TV. There are several DSP technologies available on the market (including Polish) (e.g. Google DBM, Adform, Appnexus). When choosing a specific one, it is worth paying attention to:

• what kind of advertising space the platform has access to (publishers, types – e.g. video), and what ad formats it supports (e.g. rich media or dynamic ads)
• whether it offers access to the necessary sources of data about users
• whether it allows the use of specific targeting methods
• what are the costs associated with the use of the tool (usually platforms charge from a few to several percent of the value of the advertising budget, but it may be that a minimum monthly fee is required), there may also be costs associated with training or integration with other tools.

The operation of the platform is often entrusted by advertisers to media agencies, which take it upon themselves to set business terms with the technology provider and have the necessary knowledge and experience, but there are also clients who choose to handle programmatic campaigns themselves. This requires significantly more resources, but at the same time gives control over the entire buying process and saves on agency margins.

DSP’s main functions

DSP offers a number of features that help advertisers effectively manage their advertising campaigns. Here are some of them:

• Demographic targeting: DSP allows you to precisely define your target audience based on factors such as age, gender, location, or interests.
• Behavioral targeting: By analyzing the behavior of Internet users, DSP can deliver ads to people who exhibit certain online behaviors, such as visiting a specific website or making online purchases.
• Contextual targeting: The DSP can deliver ads based on the content of the website on which they are displayed. For example, if a user is browsing an article about travel, the DSP can display an ad related to the travel industry.
• Campaign optimization: you can find demand side platforms and ensure efficient real-time monitoring and optimization of ad campaigns. Advertisers can adjust their strategies based on performance and data analysis.

Advantages of DSP

DSP offers many advantages for advertisers. Here are some of them:

• Precise targeting: With DSP, advertisers can reach their target audience more precisely and effectively.
• Cost-effectiveness: DSP enables advertisers to control their advertising budget and optimize spending based on campaign performance.
• Access to various channels: DSP enables advertisers to reach their target audience on different advertising platforms and channels, which increases the reach and visibility of ads.
• Performance measurement: DSP provides advertisers with detailed reports and analysis to help evaluate campaign effectiveness and take further action.

DSP applications

One of the main applications of DSP is programmatic advertising. This is a form of digital advertising in which the buying and selling of ads is done automatically, based on predetermined criteria. DSP allows advertisers to purchase ads in real-time, allowing them to reach their target audience more efficiently and precisely.

Retargeting

Retargeting is a marketing strategy in which ads are displayed to users who have previously visited the advertiser’s website. DSP enables precise targeting of ads to these users, which increases the chances of conversion and return to the site.

Personalization of ads

With DSP, advertisers can tailor ad content to individual user preferences and behaviors. Based on data analysis, DSP can deliver ads that are more relevant and interesting to audiences.

A/B testing

DSP enables A/B testing, which allows advertisers to compare the effectiveness of different ad variants. This makes it possible to optimize campaigns and choose the best solution.

Conclusion

So, if you want to target your ads precisely, look no further than Demand-Side Platforms. These tools let advertisers buy digital ads in real-time, reaching the perfect audience as well as offering a variety of benefits like programmatic buying, retargeting, and A/B testing, all to optimize your ad campaigns. For example, SmartyAds is a trusted DSP provider that offers a user-friendly solution with self-service and view-only accounts.