Demand Side Platform

In the not-so-long-distant past, advertisers sold and bought digital ads manually. Manual as it may seem, but it entailed more cost and proved to be quite unreliable. It only left advertisers will little ad inventories that they can use for their ad campaigns.

But gone are the days when advertisers need to think of these things. With the rise of Demand Side Platforms, the process of selling and buying ad inventories has become more reliable and cheaper. This is made possible through programmatic bidding that DSPs boast.

Demand Side Platform (DSP)

DSP is a system being used by advertisers to manage and purchase ad inventories from various ad sources in just a single interface. This is made possible with the intelligent software which is capable of bidding inventories via an auction process. This results in more reliable and cheaper ads for selling and buying.

The bidding process is called “programmatic advertising.” In just a matter of microseconds, real-time bidding (RTB) happens.

How Does a DSP Work?

Demand Side Platforms make it easier for advertisers to connect with resources of inventory supplies. It makes the job of advertisers easier to look into numerous websites and mobile apps of publishers for ad inventory buying, which is based on impressions.

Another noteworthy feature of the DSPs is the fact that newer generations are capable of offering cross-channel media buying. Some of the platforms in which ad buying can now occur are Google keyword search, LinkedIn, Instagram, Facebook, direct publishers’ in-app and web, OTT/CTV, and ad inventories from China, such as Alibaba and WeChat, Baidu, etc.

Not only does it becoming easier for advertisers to buy ad inventories. But it also helps in running end-to-end ad campaigns starting from the top to the bottom of the sales funnel. It leads to less complicated audience targeting, which covers awareness, interest, and even down to conversion.

 Ad Networks Vs. Demand Side Platforms

If one opts for add networks, an advertiser will be able to purchase ad inventory in bulk instead of an impression at a given time. Ad inventories are pooled together from different publishers. Later on, these ad inventories are grouped and sold as slices to advertisers. The only downside of the ad networks is that not all accommodate Real-Time Bidding (RTB).

On the other hand, DSPs work the same way with ad networks with some unique proposition, specifically when it comes to audience targeting. But the most notable thing about DSPs is their ability to do real-time bidding, optimization, and tracking, and serving ads using multiple platforms.

Self-Serve Vs. Full-Service Demand Side Platforms

DSPs are classified into two kinds: self-serve and full-service. The self-serve platform is known for managing your ad campaign, while full-serviced DSP is known for the costly price tag that goes with it.

The self-serve DSP has a lower-cost entry for advertisers, hence, making it a better choice for those advertisers who would preferably manage a campaign on their own terms. On the other hand, the full-service DSPs have their own account managers leading the campaigns on your behalf. They ensure the success of your campaign, starting from planning, budget distribution, and targeting options.

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