Demand Side Platform (DSP)
Definition: “A demand-side platform(DSP) is a programming advertising system that allows advertisers & media buying agencies to manage multiple ads & data exchange through one interface. The ad-buying process is significantly faster, cheaper & more efficient by DSP”
Demand-Side Platform – A Part of an online advertising system
In other words, a demand-side platform (DSP) allows advertisers to buy advertising with the help of automation. DSP is a great marketing automation tool.
Some important stages to describe how DSP works? By dashboard, the advertiser uploads original sets up targeting and puts down a allow their campaigns. Once the campaign creative is uploaded, the DSP searches through its network of publishers for sites and mobile apps that fit the advertiser’s criteria and makes a bid for placement then DSP resolves the bad intensify places the ad and manages payment.
#Types of Demand-Side platforms (DSP)
There are two models of demand-side platforms. You can say; Self-Serve DSPs & Full-Service DSPs.
Here is a brief definition of each and their detail that helps you to choose the best one for your campaign.
1. Self-Serve DSPs:
A self-serve demand-side platform is a standard representation of what programmatic adepts regularly call a DSP.
It is a platform for automated media buying based on a real-time bidding sale, and in the sale, advertisers bid for an impression at a time, and the tremendous bidder always wins.
It allows advertisers to organize, manage, and optimize ad campaigns without external support. Signing up for a self-serve DSP is the most obvious way to start trading ads programmatically. All you need to do is make a deposit, upload your creative, adjust perspectives, and set your campaign off.
2. Full-Service DSPs:
A full-service demand-side platform performs like an automation agency with an AI brain. They give further service through an expert team and their account manager. The Expert team in the DSP takes control and accountability for the ad campaign from start to finish. Full-service DSP has its limitations and benefits; ex. Advertisers need the minimum amount of budget to run the marketing campaign but the benefit is that the minimum budget expert team is working to give you the best output.
Self-Serve VS Full-Service DSPs
Some DSPs allow a self-serve platform which is an exceptional way to run your ad campaigns. Others are managed or full-service DSPs which can be an expensive alternative.
The benefit to adopting a self-serve DSP is its cheaper cost entry. A full-serve DSP is usually more costly as you’ll have to commit towards a minimum ad budget per campaign.
By self-serve DSP you don’t have to commit a large upfront advertising budget to get started. That said, you’re liable for the targeting, bidding, budgeting, and optimizing of your advertising campaign. This is the rationale a number of the advertisers prefer adopting a self-serve DSP because they like to handle their campaigns in their way.
On the other hand, Full-serviced DSP provides account managers that will commit their time to manage the campaign.
#How does DSP work compared to other platforms?
We’ve just learned what Demand Side Platform is and its examples, it’s time to get a piece of information on how DSP works?
The way the DSP works is highly technical. The DSP connects with ad inventory supply sources, where tons of publishers’ supplies are available. This allows merchants to buy ad inventory placings across the number of publishers’ websites and mobile apps based on impressions.
If managing ads by Google Display Network manager then, buy impressions on Google publishers only. If you buy ads by Facebook Ads Manager then, buy Facebook or Instagram specifically.
DSP is independent of these networks. It is third-party software that allows purchasing, analyzing, and managing ads across many networks from a single place.
The best demand-side platform companies are available in the market which provides programmatic advertising across the world.
Some are the Demand-side platform examples:
These are some of the demand-side platforms for digital advertising and many more are on the list.
#Why is a demand-side platform(DSP) important?
Demand-Side Platforms are crucial in real life because they allow the management of advertising across real-time bidding networks. Advertisers don’t have to manually contact thousands of publishers with advertising offers, this is the reason marketers can save time and energy on something that can be completed by an automated machine.
Benefits of demand-side platform (DSP)
To target the right customers and achieve the desired result, every marketer wants to create an ad campaign. Using data and tools, they cannot materialize their marketing goals. At that time, DSP can help to achieve their marketing goals in a short duration.
Marketers can easily reach out to global audiences by programming advertising through DSP.
The Demand-Side Platform is cost-optimized and it’s the best feature for the success of each campaign. Due to the real-time strategy, you can protect yourself by overpaying. Also, get cheaper inventory that suits your cause the best.
3. Effective Targeting
Advertisers can connect to the various segments of the audience by applying different targeting criteria, Such as Demographic Targeting, Geo-Targeting, Behavioural Targeting, Device Targeting, Retargeting, and many more.
Here are some strategic examples of effective targeting ;
- Audience Demographics Targeting:
DSP targets based on demographic features such as age, gender, title, education, etc.
- Audience Geo-Location Targeting:
Geo-targeting allows targeting the audience based on the geo-location such as zip code, state, country, etc. Also, it will help to provide language information to the audience.
- Audience Device Targeting:
It targets based on the user device data such as mobile, desktop, or tablet. Also, it provides mobile device information.
- Audience Behavioural Targeting:
It targets users based on the behavioral flow and personal choices or interests.
- Audience Contextual Targeting:
It allows placing any ads that are important to the particular website, mobile app content, or website category.
It is retargeting the existing customers.
4. Increase Target Audience
As defined above by DSP, you can customize the appropriate target audience based on some predefined criteria.
Most of the demand-side platforms decide to target the obeying:
- Audience by the device they use, such as Mobile, desktop, tablet, etc.
- Audience by geo-location, Country, time zone, etc.
- Audiences by Age, Gender, Marital status, languages, and many more.
Several processes are involved in ads submissions, such as mass copy-pasting, retargeting, report downloads, and many more. By DSP, most of these are received by automation.
Moreover, DSP supports automation for the everyday optimization process too.
6. Advanced Reporting & Analytical Visualisation
If the ads run on several Ad Exchanges, DSP can assemble data from individual sources & consolidate it to give a centralized report. With the real-time feature on DSP, marketers can track the original performance of their ad campaigns immediately.
Simultaneously, the advertisers have full access to the report to view website traffic, engagement rates, CTR, etc.
#The Architecture of a Demand-Side Platform
Demand-Side Platform helps brands & advertisers set up and manage programmatic ad campaigns. Although the structure of DSPs changes based on the requirements of the campaign and their usability. Most of the DSP platform has common architecture except the advanced functionality and usability. Here are the major key points of the DSP architecture.
Third-party integrations with the DSP platform can advance the functionality and user capability. A DSP integrates with ad exchanges and SSPs for advertising space, but it also integrates with other tools like data management, payment gateways, DMPs, analytics platforms, and brand safety solutions, which magnify the risk management capabilities of the DSPs.
The bidding method is one of the essential features of a DSP. The bidding method is conducted by an element called bidder, which is in charge of placing bids on inventory during real-time bidding auctions.
A good DSP platform manages multiple bidders with their running campaigns at various data centers alongside the advertisers’ audience targeting parameters and statistics.
3. Ad Server
An Ad Server is essential for storing the ad creative, the ad markup, and demonstrating to a user when required. Eternally since the technology of DSP was rolled out, ad servers remain one of the fundamental tools for creative management.
Some DSPs have their ad servers, while others may hook up with external ad servers counting on the architecture. The ad server determines and supports the ad creative and their running performance to the publishers’ website & tracks the user conversion data.
4. Campaign Tracker
A campaign tracker supports recording the data about the performance of a particular campaign. The data contains clicks, impressions, and spends.
Once the info is recorded, it’ll be transferred to the reporting dashboard. The campaign tracker helps the user to work out the performance of a specific campaign.
The campaign tracker tracks campaign performance and the analysis reports help you to measure important metrics like the win rate, impressions, clicks, cost per impressions, CTR, and tons more. The campaign conversion tracking tool uses tracking code or the postback request process to track conversions.
5. User Interface
The User Interface is the dashboard where the marketers control the process of creating, managing, and optimizing their campaigns. It is the visual element advertisers see when managing ad campaigns.
6. User Profile Database
The user profile database stores user details like their properties, the segments they’re a part of, ads they’ve viewed, their conversion data, and so on. The user profile database is beneficial during remarketing campaigns.
7. Reporting Database
In the database, all the data received from the campaign tracker is stored. The users can create reports by use of this information. It consolidates the campaign performance data collected by the tracker.
In DSP, the possibilities are high that the user may overspend throughout the bidding. This is mainly due to numerous bids occurring in real-time.
If the user is not careful then, he may cross the budget line. Banker is an essential feature of DSP which holds the users from overspending. The banker makes sure that the campaign cost doesn’t exceed the campaign budget. The banker is also recognized as a cashier.
#Demand-Side Platform VS Supply-Side Platform
DSPs & SSPs are crucial parts of the real-time bidding methods for programmatic advertising. Demand-side platform (DSP) is a tool used by advertisers to support an organization for ads-buying. whereas supply-side platform (SSP) is used by publishers to automate the sale of advertising space, which is a supply-side platform (SSP) of the demand-side platform (DSP).
Demand-Side Platform (DSP)
- DSP is used by the advertiser.
- It allows buying ad impressions from ad exchanges for the cheapest price.
- It allows advertisers to do audience targeting.
- DSP may adopt several KPIs depending on the goal of an advertising campaign.
- DSP allows various functions on the interface for purchasing, serving, and tracking.
Supply-Side Platform (SSP)
- SSP is used by the Publisher.
- It connects publishers with multiple DSPs.
- It runs a real-time auction and serves the ads.
- SSP sells the spaces on limited KPIs, such as Cost per Mille and Cost per Click (CPC).
- SSP allows functions limited to advertiser categories and setting margins/ minimum bid.
#Demand-Side Platform VS Google AdWords
What is the meaning of the demand-side platform (DSP)? Is it similar to Google AdWords?
Here are the things to clear about what DSPs are & how they differ from a platform like Google AdWords.
Reach is one of the major differentiators between AdWords & DSPs. When you are dealing with audience targeting or contextual targeting, reach is crucial to achieving scale. By DSP, you can find an audience anywhere on the web & show them your ads. On the other hand, Google Display Network (GDN), as available through AdWords, is limited to Google properties.
For Targeting the audience, there are many options are open for AdWords & DSP both; like geographic targeting, age and device targeting, etc. Advanced level targeting method (ex. retargeting or remarketing) options are also available on both platforms. However, DSPs are undoubtedly more effective at targeting audiences than Adwords.
DSPs are also used for retargeting campaigns and this is possible because they can manage large volumes of ad inventories & recognize ad requests with an ideal target audience.
DSPs also worked for retargeting campaigns and this is possible because they can manage large volumes of ad inventories and identify ad requests with an absolute target audience, that is targeted by the advertiser.
Contextual targeting is also another similarity on both platforms but AdWords allows contextual targeting by keywords or category both. while DSPs only allow targeting by category.
Moreover, there is no question that the target capabilities of DSPs, made possible by real-time bidding, are far more advanced.
For Data Freshness & transparency, DSP is the most reliable platform from AdWords. It is dedicated to the report interface transparency & granular reporting of the campaign data.