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DSP stands for the demand-side platform, and, shortly put, it’s software that helps advertisers buy ads in an effective and automated way. In this article, we are going to talk a bit more about DSPs and explain their role in the large programmatic advertising ecosystem.
Whether you are an advertiser or a marketing agency, you need to buy ads. In general, there are two ways to do that:
Today, the second way is far more popular, and it’s frequently referred to as programmatic advertising or programmatic media buying. There are three major models based on which programmatic media buying works:
With this short introduction done, we can talk about DSPs. As you can see, there is quite a lot going on in this environment – there are publishers, advertisers, and auctions. To make this even more complicated, everything is based on marketing data that comes from different sources (e.g., cookies, CRMs, DMPs – data management platforms, and from the publishers themselves). You need online platforms that help both parties manage the media buying process to make it all work flawlessly. And these platforms are called DSP (demand-side platform) and SSP (supply-side platform). Let’s talk more about them.
The name demand-side platform comes from the business where we usually have two parties – one has a specific demand (e.g., to buy a product or use a service), and the second one provides supply (said product/service). The demand-side platform operates based on the advertisers’ needs and requirements. It’s a third-party software (which means it’s independent of Google, Facebook, or any other large advertising ecosystem), enabling advertisers to purchase, analyze, manage and publish their ads in many advertising networks. And all of that is available from a single dashboard.
You can think of DSP as a more comprehensive Facebook Ads Manager. Facebook’s solution works only with this particular social media platform, while DSPs work with several different platforms. But the general idea is pretty much the same.
With a DSP, you can make the most of the following advertising channels:
You now know what DSPs are and what they are for. Let’s now analyze what they’re good for.. Of course, the most significant pros are already apparent – with DSPs, you improve your performance and save a lot of time. But there’s more:
Earlier in the text, we mentioned SSPs. What are they? This acronym stands for supply-side platform. Publishers use them in order to sell ads available on their websites for the highest possible price. SSPs help them manage the whole process and oversee it. To understand how that relates, take a look at this picture:
We hope that now you understand what DSPs are all about and why they are so useful in today’s business and marketing environment.
At Roq.ad, we work with DSP providers on a daily basis. If you want to know more, feel free to drop us a line.
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