In today's article we will explore in depth the topic of Demand-side platform, a topic that has captured the attention of researchers, philosophers, scientists and the general public. Demand-side platform has been the subject of debate and study for centuries, and its relevance in contemporary society is undeniable. From its impacts on technology and science, to its implications on culture and art, Demand-side platform has proven to be a multifaceted phenomenon that deserves our attention. Throughout this article, we will analyze the different facets of Demand-side platform, examining its origins, its evolution over time, and its influence on the modern world. Get ready to embark on a fascinating journey through the intricacies of Demand-side platform!
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.
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.
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:
DSP has absorbed the features of the real-time bidding of the previous generation and has brought a lot of new things to the advertising industry:
All these features are collected in a single system, which gives advertisers a unique opportunity to fully control the course of an advertising campaign and maximize its impact on the audience.
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 possible in outdoor advertising or television and radio, where the advertising constitutes a one-to-many approach.
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.