Demand-Side Platform
What is a DSP?
A demand-side platform is used by advertisers. It aggregates multiple ad exchanges, allowing advertisers and ad networks to bid on different ad inventory types in real-time.
How does a DSP work?
DSPs rely on real-time bidding (RTB) to purchase ad space.
- Publishers put up their inventory or ad space on ad exchanges through a supply-side platform (SSP).
- DSPs then request ad space as soon as it is available.
- DSPs choose the best user impression on the ad space and bid on it through RTB
- When the DSP wins the bid, the advertiser’s ad is displayed in the ad space.
Why are DSPs important?
- DSPs have eliminated the traditional buying process, where manual intervention was required to negotiate deals between publishers and advertisers, which also consumed a lot of time.
- DSPs can target based on various factors, including demographics, region, the kind of device being used, and browsing habits.
- DSPs feature more sophisticated performance tracking tools available through conventional ad networks, enabling advertisers to optimize their advertising budgets more effectively.
Contents
What is a DSP?
How does a DSP work?
Why are DSPs important?
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