Do you know DSP meaning? If no, this article can tell you. It also introduces how DSPs work and the benefits for media buyers to use DSPs. After reading this article, you will know DSP better. When advertisers need YouTube, they always use Google DSP. If you want to download YouTube videos, use MiniTool uTube Downloader.
Digital advertising has changed a lot in recent years. In the past, companies had to locate and buy ads manually in many different markets. Thanks to modern technology, we now have a platform called DSP. In the early days, digital advertising was not always as easy to buy and sell as it is now.
As an advertiser, it is important to understand what DSP means and its advantages.
DSP Meaning
Software that allows advertisers to buy and manage their activities from ad exchanges is called DSP (demand-side platform). It includes a software-based automated advertising marketplace where advertisers sell inventory and advertisers make real-time bids. For many people, this concept is a challenging one because it contains all the components.
The share of sales in real-time bidding has grown exponentially since 2012. In the US, China and the UK, the number continues to grow. In addition, the study expects RTB to grow further, reaching $25 billion by 2025. So, it’s time to learn about RTB advertising.
When we think about the purpose of a DSP, it is to allow advertisers to buy impressions on publishers’ websites. In addition, these impressions are targeted to specific user groups according to specific criteria, locations, and so on.
DSP is a method used by advertisers to view the AD space available for purchase and then select which AD space should be purchased. Google Display & Video 360 competes with MediaMath Inc., Amazon Advertising and Trade Desk Inc. When advertisers need YouTube, most of the time, they must use Google DSP.
You may already know some vendors that sell DSP technology. These include Google’s Invite Media, DataXu, X+1, Facebook Ad Manager, etc. Some DSPs specialize in advertising through specific channels such as mobile phones or video.
How Does a DSP Work?
Through DSP, advertisers provide design and advertising content. They determine their target market and provide their maximum budget. DSP then looks for opportunities in all possible systems to find advertising space for advertisers at the lowest cost and achieve their goals. Then the DSP starts buying ads until they use all the money in the budget.
The Benefits for Media Buyers to Use DSPs
Advertisers want one thing to create an AD campaign that is properly focused on the target audience to achieve the desired results. You can’t do this without the right data and tools, which the DSP provides, so it makes sense for media buyers to take advantage of it. Some of the benefits include:
World Reach and Unification
Before working with DSP, the most important thing is to learn what traffic vertical and format they support. Almost all DSPs work with RTB exchanges, some offer premium inventory, some do not. Some DSPs have partnerships with local senior partners, but others connect to international AD Exchanges.
Targeting Effectively
Without effective targeting, the DSP loses a step. This step uses user data to make the message relevant to the audience. So what can DSPs target?
- Location, county, city, time zone
- Gender, marital status, income, education, language, interests
- Devices in use (mobile phones, computers, tablets)
In addition, there are many other options for setting an upper limit on frequency of occurrence.
Correct Inventory Choice and Brand Integrity
A successful RTB campaign depends on the right inventory selection. Because you can pre-define the type of inventory you want to buy, using the DSP makes it easier. For example, in-app ads with mobile or desktop ads generate higher engagement.
By adding a few applications to the whitelist, advertisers can shorten the inventory selection period. As a result, it allows for almost immediate posting on the site to have the best performance, thus maintaining the integrity of the brand. Maintain a safe brand image by eliminating insufficient inventory or blocking fraudulent or potentially harmful sources through blacklists.
The Data: Reporting and Analytics
One significant advantage you will find is data and reporting tools. DSP allows advertisers to track the performance of their AD campaigns in real time. In addition, DSP also provides click-through rates, website traffic, page views, and user engagement rates, and provides relevant reports in a granular statistical report format.
It doesn’t matter that the ads run on different AD Exchange, the DSP collects data from each source and then merges it into a unified report. Data and reports let advertisers know what works and what doesn’t.
Bottom Line
In conclusion, you should know DSP meaning right now. This article also shows how DSPs work and the benefits for media buyers to use DSPs. Hope you get what you need from this article.