A demand-side platform (DSP) is part of automated trading and bidding for digital advertising space in online marketing and is a central component of programmatic advertising. The DSP is a platform that enables the purchase of advertising space and advertising inventory. This process is automated using various algorithms. The DSP bundles inventory from various sources – including ad networks and sell-side platforms (SSP). Prices are calculated on the basis of the playout options of the respective advertising inventory and via real-time bidding (RTB).
The benefit for users of a DSP lies in optimizing the purchase of advertising inventory and giving advertisers the opportunity to use this data automatically in their advertising campaigns. The aim of this automation is to increase the efficiency of campaigns. Among other things, this means that campaigns are only played out where it makes the most sense for buyers.
Top 10 demand-side platform providers
As an advertiser, you have many different DSPs to choose from to play out and control programmatic display campaigns. While this topic has been known and established on Google and Facebook platforms for some time, CPM-based display marketing is still relatively new for e-commerce giant Amazon.
The exciting thing about this is that Amazon offers an enormous database that can be used to advertise specific products in a targeted manner. You can find out more about this on our Amazon DSP page.
According to an article by clockworktalent.com, the following providers are among the top 10 demand-side platforms (DSPs):
- Facebook Ads Manager / Facebook For Business
- rocket fuel
- MediaMath
- Amazon DSP (formerly “Amazon Advertising Platform”, AAP for short)
- Double-Click by Google
- LiveRamp
- Choozle
- TubeMogul Programmatic Advertising Software
- BrightRoll Smart Video Advertising (by Yahoo!)
- AppNexus – International Internet advertising and ad management software
What is the task of a demand-side platform?
In addition to the technical connection to various supply channels, the main task of a DSP is to continuously check and evaluate potential ad impressions within milliseconds. Algorithms based on bidding rules and predefined strategies are used for this.
How does a demand-side platform work?
First of all, a DSP is a technological platform that provides services. It is aimed at agencies and advertisers who want to buy display, video or mobile ads in order to generate ad impressions.
The demand side is the side that requires advertising inventory and advertising space. The publishers on the other side are ad networks, ad exchanges and supply-side platforms (SSP), which ensure that ad impressions are made available on the demand side (DSP).
A clear advantage of this approach for buyers is that DSPs enable extended access to advertising networks. By implementing real-time bidding, the price per impression is automatically determined by the relationship between supply and demand. Not only can you choose the best price for you, but you also benefit from the reach of multiple networks.
All you have to do is provide the DSP with the necessary specifications and campaign objectives. The DSP is usually able to continuously monitor the defined criteria and thus achieve maximum campaign efficiency.
There are three types of programmatic DSPs:
Self-serve demand-side platform
The self-serve demand-side platform is probably the most popular form among DSPs. Campaign creation and ongoing optimization are entirely in the hands of the advertiser.
Advantages of the Self-Serve DSP:
- Campaigns can be started and stopped at any time
- You can connect to any traffic source available on the platform
- The advertising budget is fully visible and controllable for you
Disadvantages of the Self-Serve DSP:
- You should invest some time to familiarize yourself with the principle of DSP
- A lot of manual work is required
- The performance of the ads should be checked daily
Full-service DSP
Full-service DSPs require a sales representative to be involved in the digital advertising process. After registering with a full-service DSP, a manager will help you set up, launch and manage your advertising activities.
Advantages of the full-service DSP:
- You don’t have to deal with the technical details of a DSP
- Time saving, as set-up and management are handled by someone else
- The assigned manager provides support with optimizations and technical problems
Disadvantages of the full-service DSP:
- You have no direct control over your campaigns
- Changes or starts/stops must always be made via the Manager:in
- The assigned manager may not be sufficiently qualified to manage the campaigns as efficiently as possible
Hybrid DSP
A hybrid demand-side platform combines self-serve and full-service DSPs. Campaigns can be automated or manually controlled as required.
Importance of the demand-side platform for online marketing
DSPs are increasingly seen as the natural successor to traditional ad networks – a clear advantage lies in the powerful algorithms. However, it is important that transparency and neutrality are maintained in the market. Critics fear conflicts of interest in the cooperation between ad networks and other publishers.
However, it is precisely this transparency that is a decisive advantage of DSPs: better comparability, greater efficiency and more control for advertisers.