Demand-Side Advertising Platform (DSP)

A Demand-Side Advertising Platform (DSP) is an advertisement transaction system that allows a buyer of digital advertising inventory (e.g. WalMart) to manage their ad buys.

• Context:
  • It can (typically) include a Real-Time Bidding System.
  • It can provide Ad Slot Buy Rules.
• Example(s):
  • Google Ad Sense Demand-Side System.
  • Facebook Ads Manager.
  • Rocket Fuel.
  • …
• Counter-Example(s):
  • Supply-Side Advertising System.
• See: ad Exchange, Data Exchange, Real-Time Bidding, Online Advertising, Pay Per Click, Cost Per Action.

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References

2019a

• (Wikipedia, 2019) ⇒ https://en.wikipedia.org/wiki/Demand-side_platform Retrieved:2019-10-17.
  • 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. Real-time bidding for displaying online advertising takes place within the ad exchanges, and by utilizing a DSP, marketers can manage their bids for the banners and the pricing for the data that they are layering on to target their audiences. Much like Paid Search, using DSPs allows users to optimize based on set Key Performance Indicators such as effective cost per click (eCPC), and effective cost per action (eCPA).

    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. The sophistication of the level of detail that can be tracked by DSPs is increasing, including frequency information, multiple forms of rich media ads, and some video metrics. Many third parties are integrating with DSPs to provide better tracking. In addition, DSPs have begun to use advanced price reduction algorithms, commonly known as bid shading, to help advertisers procure ad impressions for a lower CPM in the first-price auction.

    DSPs are commonly used for retargeting, as it is able to see a large volume of inventory in order to recognize an ad call with a user that an advertiser is trying to reach. The percentage of bids that are won over the bids that were submitted is called a win rate.

2019b

• https://clockworktalent.com/blog-top-ten-demand-side-platform-for-programmatic-advertising/
  • QUOTE: ... After the advertiser has inputted their desired target audience preferences into a demand-side platform (DSP), programmatic bids can be placed using Artificial Intelligence (AI). ...

   Facebook Ads Manager
   Rocket Fuel
   MediaMath
   Amazon (AAP)
   DoubleClick
   LiveRamp
   Choozle
   TubeMogul
   BrightRoll
   AppNexus

2018

• https://lotame.com/dmp-vs-dsp/
  • QUOTE: ... Data Management Platforms (DMPs) and Demand Side Platforms (DSPs) are two players in the Ad Tech ecosystem that have continually caused confusion among interested buyers in the space. ...

    ... A DSP is a real-time bidding system that connects media buyers with data exchanges and supply-side platforms through a single interface. DSPs serve as the middleman between media buyers and publishers, providing a repository through which they can buy and sell ad inventory. ...

    

= 2014a

• (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Demand-side_platform Retrieved:2014-10-22.
  • 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. Real-time bidding for displaying online ads takes place within the ad exchanges, and by utilizing a DSP, marketers can manage their bids for the banners and the pricing for the data that they are layering on to target their audiences. Much like Paid Search, using DSPs allows users to optimize based on set Key Performance Indicators such as effective Cost per Click (eCPC), and effective Cost per Action (eCPA).

    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. The sophistication of the level of detail that can be tracked by DSPs is increasing, including frequency information, multiple forms of rich media ads, and some video metrics. Many third parties are integrating with DSPs to provide better tracking.

2014b

• (Wikipedia, 2014) ⇒ http://en.wikipedia.org/wiki/Real-time_bidding#Demand_side_platforms Retrieved:2014-10-22.
  • Demand side platforms (DSPs) give buyers direct RTB access to multiple sources of inventory. They typically streamline ad operations with applications that simplify workflow and reporting. DSPs are directed at advertisers. The technology that powers an ad exchange can also provide the foundation for a DSP, allowing for synergy between advertising campaigns.

    The primary distinction between an ad network and a DSP is that DSPs have the technology to determine the value of an individual impression in real time (less than 100 milliseconds) based on what is known about a user’s history.

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