Demand Side Platform

What Is a Demand Side Platform?

A demand side platform, or DSP, is a software tool for digital advertisers to automate their ad buys across multiple exchanges from a single interface. A DSP enables advertisers to place real-time bids on ad inventory based on a variety of preset criteria, including audience segments, pricing, and geo-location data. DSP advertising has become an important part of programmatic marketing because it enables ad buyers to reach highly targeted audiences more efficiently and effectively via automation. DSPs themselves don’t own ad inventory, but rather they make it available to buyers by integrating it from multiple exchanges and platforms into a single marketplace.

A DSP is different from a supply side platform, or SSP, which is another key part of the programmatic advertising ecosystem. Whereas a DSP is used by digital ad buyers, a supply side platform is used by publishers to manage and sell inventory across their websites, mobile apps, and other digital media.

Why Use Demand Side Platforms?

A DSP enables advertisers—even smaller companies with limited resources—to access the huge range of digital ad inventory available online. A DSP does this in part by facilitating the purchase of ad space and management of campaigns in a single place. This prevents the need for marketers to repeatedly negotiate new ad buys with different publishers and exchanges. Furthermore, it does this across multiple channels, including display advertising, mobile ads, and video. DSPs can streamline ad buying and campaign management, enabling marketers to maximize their budgets and ROI. Lastly, DSPs generate new opportunities for optimization, with enhanced campaign reporting and analytics.

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