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Demand-Side Platform (DSP)

Anna Mardas
22 July 2024

If you’re an affiliate marketer looking to expand your expertise, you’ve likely come across DSP meaning. Let’s dive into what a DSP is and why it’s a game-changer for advertisers.

What is a DSP?

A DSP is a system that allows advertisers to buy ad inventory from multiple sources simultaneously, including publishers, ad networks, and ad exchanges. DSPs are designed for those who “demand” ad inventory. They facilitate buying this inventory through automated systems, leveraging real-time bidding (RTB) technology to ensure advertisers can buy the best available ad spaces at optimal prices based on their targeted criteria. 

Key features of DSPs:

  • Real-Time Bidding (RTB). DSPs allow advertisers to bid on ad spaces in real-time, offering them the opportunity to purchase ad inventory the moment it becomes available;
  • Advanced targeting. Using complex algorithms, DSPs enable advertisers to target their ads to specific users based on detailed criteria, enhancing the likelihood of ad engagement and conversion;
  • Integrated with multiple sources. DSPs connect with various ad exchanges, ad networks, and directly with publishers, providing a broad range of inventory options.

How Does a DSP Work?

Here’s a detailed look at how DSPs operate:

Campaign setup:

  • Setting up a ad campaign. Advertisers use the DSP to set up their advertising campaigns. They define the target audience, budget, and other campaign parameters such as geographic targeting, time schedule, and desired traffic characteristics.

Integration with supply-side platforms (SSP):

  • Connecting supply and demand. DSPs connect with multiple SSPs through ad exchanges. Ad exchanges are digital marketplaces that facilitate the buying and selling of media advertising inventory from multiple ad networks. The inventory comes in various forms, such as display ads, video, push ads, etc.

Participation in real-time Bidding (RTB):

  • Bidding process. When a user visits a website, the SSP sends a bid request to the connected DSPs for the ad impression. The DSP then evaluates this request in real-time, using algorithms to decide whether the impression fits the advertiser’s targeting criteria and how much to bid based on the likelihood of campaign success.

Ad placement:

  • Winning the auction. If the DSP’s bid is successful, the advertiser’s ad is immediately placed on the website. This process ensures that ads are displayed to the most appropriate audience, maximizing the potential return on investment.

DSPs offer a powerful toolset for media buying, providing extensive access to diverse ad sources and formats, from classic displays to native and video ads. They enable precise, specialized targeting including retargeting and behavioral analysis, allowing ads to be highly tailored based on user demographics and preferences. Moreover, DSPs deliver transparent, detailed analytics on ad placements and performance across various sites, maximizing ad campaign effectiveness and ROI. 

Examples of DSPs

Just as ad networks, DSPs also specialize in the various niches: Adult, Nutra, Finance, mVas and etc. 

Examples of renowned DSPs:

  1. Outbrain;
  2. AppNexus;
  3. Racuten;
  4. AdRoll;
  5. Centro;
  6. LiveIntent;
  7. AdXcel.

DSP vs Ad Network: What to Choose

When deciding whether to use a DSP or an ad network, consider the following factors:

  • Complexity of campaigns. If your campaigns require highly detailed targeting and dynamic optimization based on real-time data, a DSP is more suitable. For simpler, broad-target campaigns, an ad network may suffice;
  • Technical resources. Evaluate your team’s technical expertise. DSPs require a good grasp of online advertising industry, while ad networks are more accessible for those without specialized knowledge;
  • Budget. Consider the overall budget, including not just the cost per click but also the potential for ad spend efficiency. DSPs can offer more efficient use of budget through precise targeting and optimization, whereas ad networks might provide more straightforward cost structures;
  • Campaign goals. Align your platform choice with your campaign goals. For reaching a broad audience with less specified criteria, ad networks are ideal. For campaigns where ROI is closely tied to reaching specific user segments, opt for a DSP.

Related Posts:

Anna Mardas
Anna Mardas brought together her background as a copywriter in digital marketing. Now, she's got a solid grasp on affiliate marketing, especially when it comes to understanding the following niches: Gambling, Adult, Dating, Sweepstakes and Crypto. Anna stands out for her thorough research and insightful reviews of ad networks, offering her readers valuable knowledge.

Table of contents:

If you’re an affiliate marketer looking to expand your expertise, you’ve likely come across DSP meaning. Let’s dive into what a DSP is and why it’s a game-changer for advertisers.

What is a DSP?

A DSP is a system that allows advertisers to buy ad inventory from multiple sources simultaneously, including publishers, ad networks, and ad exchanges. DSPs are designed for those who “demand” ad inventory. They facilitate buying this inventory through automated systems, leveraging real-time bidding (RTB) technology to ensure advertisers can buy the best available ad spaces at optimal prices based on their targeted criteria. 

Key features of DSPs:

  • Real-Time Bidding (RTB). DSPs allow advertisers to bid on ad spaces in real-time, offering them the opportunity to purchase ad inventory the moment it becomes available;
  • Advanced targeting. Using complex algorithms, DSPs enable advertisers to target their ads to specific users based on detailed criteria, enhancing the likelihood of ad engagement and conversion;
  • Integrated with multiple sources. DSPs connect with various ad exchanges, ad networks, and directly with publishers, providing a broad range of inventory options.

How Does a DSP Work?

Here’s a detailed look at how DSPs operate:

Campaign setup:

  • Setting up a ad campaign. Advertisers use the DSP to set up their advertising campaigns. They define the target audience, budget, and other campaign parameters such as geographic targeting, time schedule, and desired traffic characteristics.

Integration with supply-side platforms (SSP):

  • Connecting supply and demand. DSPs connect with multiple SSPs through ad exchanges. Ad exchanges are digital marketplaces that facilitate the buying and selling of media advertising inventory from multiple ad networks. The inventory comes in various forms, such as display ads, video, push ads, etc.

Participation in real-time Bidding (RTB):

  • Bidding process. When a user visits a website, the SSP sends a bid request to the connected DSPs for the ad impression. The DSP then evaluates this request in real-time, using algorithms to decide whether the impression fits the advertiser’s targeting criteria and how much to bid based on the likelihood of campaign success.

Ad placement:

  • Winning the auction. If the DSP’s bid is successful, the advertiser’s ad is immediately placed on the website. This process ensures that ads are displayed to the most appropriate audience, maximizing the potential return on investment.

DSPs offer a powerful toolset for media buying, providing extensive access to diverse ad sources and formats, from classic displays to native and video ads. They enable precise, specialized targeting including retargeting and behavioral analysis, allowing ads to be highly tailored based on user demographics and preferences. Moreover, DSPs deliver transparent, detailed analytics on ad placements and performance across various sites, maximizing ad campaign effectiveness and ROI. 

Examples of DSPs

Just as ad networks, DSPs also specialize in the various niches: Adult, Nutra, Finance, mVas and etc. 

Examples of renowned DSPs:

  1. Outbrain;
  2. AppNexus;
  3. Racuten;
  4. AdRoll;
  5. Centro;
  6. LiveIntent;
  7. AdXcel.

DSP vs Ad Network: What to Choose

When deciding whether to use a DSP or an ad network, consider the following factors:

  • Complexity of campaigns. If your campaigns require highly detailed targeting and dynamic optimization based on real-time data, a DSP is more suitable. For simpler, broad-target campaigns, an ad network may suffice;
  • Technical resources. Evaluate your team’s technical expertise. DSPs require a good grasp of online advertising industry, while ad networks are more accessible for those without specialized knowledge;
  • Budget. Consider the overall budget, including not just the cost per click but also the potential for ad spend efficiency. DSPs can offer more efficient use of budget through precise targeting and optimization, whereas ad networks might provide more straightforward cost structures;
  • Campaign goals. Align your platform choice with your campaign goals. For reaching a broad audience with less specified criteria, ad networks are ideal. For campaigns where ROI is closely tied to reaching specific user segments, opt for a DSP.

Related Posts:

Anna Mardas
Anna Mardas brought together her background as a copywriter in digital marketing. Now, she's got a solid grasp on affiliate marketing, especially when it comes to understanding the following niches: Gambling, Adult, Dating, Sweepstakes and Crypto. Anna stands out for her thorough research and insightful reviews of ad networks, offering her readers valuable knowledge.