A Demand Side Platform (DSP) is a system that allows buyers of digital advertising inventory to manage multiple ad exchange and data exchange accounts through one interface. DSPs are unique because they incorporate many of the facets previously offered by advertising networks, such as wide access to inventory and vertical and lateral targeting, with the ability to serve ads, real-time bid on ads, track the ads, and optimize. This is all kept within one interface which creates a unique opportunity for advertisers to truly control and maximize the impact of their ads.
DSPs are being used by advertisers and agencies to help them buy display, video, mobile and search ads using real-time bidding (RTB). DSPs are integrated into multiple ad exchanges. The use of DSPs has greatly increased the efficiency of buying ads and reduced the cost for advertisers.
A DSP's main function is to allow advertisers and agencies to buy ad inventory from various ad exchanges in an automated fashion. It does this by bidding on the ad space based on the criteria set by the advertiser.
A DSP works by connecting to ad exchanges where publishers list their available ad space. The DSP then analyzes the demographic, behavioral, and contextual data of the ad space to determine its value to the advertiser. If the ad space meets the criteria set by the advertiser, the DSP will then place a bid on the ad space.
Related software to DSPs includes Supply Side Platforms (SSPs), Data Management Platforms (DMPs), and Ad Exchanges. All these platforms play a role in the buying and selling of ad inventory.
DSPs provide several benefits to advertisers. They offer efficiency as they eliminate the need for dealing with multiple, disparate sources of inventory. They also provide detailed targeting capabilities, allowing advertisers to reach their desired audience more effectively. In addition, DSPs offer real-time bidding capabilities, which means advertisers can adjust their campaigns in real time based on performance data.
In conclusion, DSPs have revolutionized the digital advertising industry by automating the process of buying and selling ad inventory. They offer several benefits to advertisers including efficiency, detailed targeting, and real-time bidding.