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What is a DSP ?

A DSP or a Demand Side Platform is a buy side advertising management system that allows ad inventory buyers to use just one interface for different ad and data exchange accounts (display, video, search, and mobile ads).

DSPs cover everything from automatically buying ad inventory to managing it and tracking results. This reduces the margin for human error or expenses created by manually buying and tracking ads.

DSPs help ad inventory buyers buy impressions from different publishers. They’re targeted to users based on information like location and behavior. Publishers offer their inventory through an ad exchange, and DSPs automatically decide which inventory is best and bid for it (usually through Real-Time Bids or RTBs). Users can optimize based on KPIs like eCPC and eCPA.

Even though the offer of DSPs is similar to those of ad networks, DSPs are central tools that allow advertisers to optimize their campaigns easily due to better access to data. Additionally, DSPs fees are much lower than those of ad networks’ tools and integrations.

There are 4 types of DSP programmatic buys: Preferred Deal (no auction and non-guaranteed inventory, set CPM), Programmatic Guaranteed (guaranteed inventory, set CPM, no auction), Private Marketplace (RTB, price floor), and Open Exchange Buy (RTB, set CPM).

 

 

Related Articles:
Related Glossary Terms:
  • 3rd Party Data
    3rd Party Data is data collected for advertising purposes. 3rd Party Data is collected from multiple sources and based on demographics and behaviors. It is sold programmatically using a DSP.
  • Ad Exchange
    An ad exchange in programmatic advertising is an online marketplace where advertisers, agencies, demand-side platforms, publishers, and supply-side platforms may bid on advertising inventory from multiple publishers utilising real-time bidding (RTB).
  • Agency Trading Desk
    An Agency Trading Desk (sometimes referred to as an ATD) is a programmatic media planning and buying unit within a traditional advertising agency or Agency Holding Company. Think Amnet, Xaxis, Affiperf, Vivaki and Cadreon
  • Bid Rate
    Bid Rate is a Programmatic Auction metric that shows how many Bids are occurring in the Auction. The frequency cap and one's bid price are commonly used to determine this. The advertiser will only pay for gained impressions.
  • Bid Response
    A Bid Response, it is a bid reply from the demand-side platform (DSP) in an OpenRTB system to the supply-side platform (SSP). It might potentially come from the SSP to the ad publisher. It is essentially a communication to the seller displaying the buyer's value and other crucial bid criteria.


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