A demand-side platform (DSP) is an automated programmatic advertising platform where marketers can purchase and manage ad inventories from multiple ad sources. The main benefit is that you can manage all your digital ads across many networks on one interface.
With a DSP, you can purchase mobile ads on apps, banner ads on search engines, and video ads on Facebook, Instagram, Google, and even more platforms. Instead of using both Google Ads and Facebook Ads, for instance, you can purchase those ads in one place on a DSP.The purpose of tonhis is to make ad buying faster, cheaper, and more efficient. Now, let’s dive into how DSP platforms work and why you should use one.
How do DSPs work??
DSPs work by using programmatic advertising, which is the buying and selling of ads in real-time through an automated system. With real-time bidding, ad placements are auctioned off in milliseconds.When you get started with DSP advertising, you’ll need to begin strategizing how much you want to spend. Think about what an effective cost per click and cost per action might be. This will help you set up your online ads so the platform knows how much to spend in any given auction.The best DSP platforms will allow you to include multiple rich media ads, including video, images, and animation.
Why use a DSP?
The main reason for using a DSP is that it makes your digital ad experience easier and more cost-effective. You can control, track, and maximize all your digital ads in one place. This means you can manage an entire ad campaign across sites on one dashboard. For example, you can show someone an ad on Google, then show them ads on Facebook, and then across other sites they visit — all in one campaign. Before DSPs, those would be separate campaigns on Google and Facebook Ads.This means you can advertise on many networks, including all the major publishers, in addition to more. With the number of networks, you’ll have a more global reach.Additionally, DSPs often partner with third-party data providers, giving you better tracking and reporting capabilities than a single network usually provides. And in the planning process, the targeting options are more personalized, meaning you can get better conversion rates.When you’re choosing a platform to work with, you’ll want to look at how many ad exchanges the DSP has access to because that affects how many people you can reach. Plus, you’ll want to consider cost, training (full service or self-service), support, and ease of use.Now that you know more about DSP advertising and how it works, let’s discuss the platforms that can help you do it.
What you need to do before you start
When you choose a DSP, make sure you understand how many inventory sources it accesses, which third-party data integrations it offers, and what targeting criteria are available. To successfully run programmatic ads on a DSP, you’ll need to reach global audiences with personalized ads. While using a DSP simplifies paid ad management, it won’t replace customer research and having a clear idea of who your target audience is.