Services for automatic advertising purchases are gaining popularity, and the DSP platform is an integral part of them. In essence, Demand Side is a platform that combines all advertising platforms through which traffic to the site is purchased. These special advertising platforms greatly help marketers, especially during large-scale advertising campaigns. In this article, you will learn about the features of this platform, which will be very useful when launching the WL demand-side platform.
DSP And Other Participants
If you have at least a little idea about DSP, then in addition to this, you need to understand the sellers and buyers who directly participate in auctions, using their unique tools for purchasing advertising on the Internet.
Those who sell, use platforms to sell places from publishers (sites where advertising banners are placed). They occupy a place in a kind of virtual market, which operates within the Ad Networks. They include all the resources that sell advertising space.
DSP uses an additional Trading Desk extension, which is necessary for setting the necessary parameters for purchasing advertising.
Using this approach, marketers of advertising companies not only completely eliminate the human factor, but also significantly increase the speed of ongoing processes, thereby increasing the efficiency of work as a whole.
The purchase can be made in two ways:
- In the first case, this is a full-service model, when all settings and adjustments are completely carried out by DSP specialists. This is the option most often chosen by business owners, entrusting the management of all stages.
- In the second case, this is an independent purchase. Here, the Internet advertising agency acts as an intermediary between businessmen and publishers. Naturally, the Internet advertising marketing agency takes a commission as a percentage of the purchased traffic.
It is important that in any situation, an auction of advertising spaces is held, which allows targeting and bidding to be even more accurate.
What Role Does DSP Play in Programming?
Buying traffic is quite simple on the one hand, but on the other hand, all processes are constantly being improved and it is necessary to monitor updates in this area, as they directly affect both the speed and cost of advertising campaigns.
The standard process of programmatic advertising, in which DSP is involved, looks like this:
- As soon as a user visits a resource, a request for an ad display is sent through the SSP. Thus, a lot appears at the RTB auction.
- The Demand Side Platform checks all the necessary data about the user and also runs it through the database purchased from the DMP.
- Based on the data received, a bid is placed for advertising.
- The SSP checks all bids and selects the highest one, reducing its value to the penultimate. In this case, the second price tactic is used.
- As a result, the site shows the visitor the RTB ad whose bid won the auction.
Header Bidding
This is another ad selection algorithm that allows you to conduct an auction on the publisher’s website. In this case, the action is even faster, because the offer is immediately sent to the SSP, and it sends it to all DSPs. This mechanism allows you to work directly with the DSP. Header Bidding allows users to speed up the process almost 2 times, thereby increasing the publisher’s profit and giving significant savings to advertisers, since in this case the SSP commission is excluded.
How Does the Demand Side Platform Work?
In general, RTB marketing is set up to purchase target audience traffic, not just advertising space. The service allows advertisers to choose an ad space with a focus on users who fit the targeting.
A DSP that is connected to a virtual exchange analyzes advertising spaces and selects the most suitable ones according to the advertiser’s parameters. In addition, a DSP allows all operations to be carried out in one place.
A DSP relieves advertising managers of unnecessary worries because they do not need to approve rates and agree on all requirements for advertising space. All actions are carried out automatically, and the company’s specialists have more time to analyze the effectiveness of advertising campaigns.
Any online advertiser can easily launch an unlimited number of advertising campaigns that will be focused on their own strategy for buying impressions, which is based on certain targeting settings. The advertising buying platform independently makes bids in accordance with the specified parameters:
- When a request comes from a certain resource, site targeting is triggered. This is necessary if the advertiser wants to place their ad in a certain place.
- If the source of the request is in a specific place determined by the IP address, then GEO targeting occurs.
- With such settings, the parameters of the advertisement are set by the marketer, but the decision on the bid is made by the platform.
Advantages of DSP
Today, there are many similar services on the market that are ready to act as an intermediary between the advertiser and the publisher. They are all similar but have their own features in functionality. The following are worth highlighting from the positive qualities:
- Precise settings for selecting the target audience due to the DSP’s own databases.
- Simple and intuitive management of all advertising processes.
- Good and understandable reporting on the platform. Despite the large volumes of work, the RTB platform allows you to create complex reports in very understandable formats that can be analyzed in real-time, which has a positive effect on the campaign as a whole.
What Are The Characteristics of a Good DSP?
Not all DSPs give the same result, there are a number of characteristics by which you can recognize a good one:
- The advertiser gets full access to the functionality for self-configuration;
- Maximum transparent pricing;
- All processes related to the purchase must be carried out with notification of the advertiser;
- The DSP should not receive additional commissions from publishers;
- The platform cannot be connected to an advertising network, as it must remain independent.
Wrapping It Up
DSP in programmatic is the main component in advertising activities and significantly simplifies the work of many marketers who use an automated method of purchasing advertising. Right now, the peak of popularity for programmatic purchases is taking place, so it’s time to join this market. If you want to launch a white-label DSP or SSP, we recommend paying attention to Teqblaze. The company has extensive experience in providing high-quality ad tech solutions, including AI-powered white-label demand-side platform.
