What Is A DSP and How It Relates to Ads

Business woman working on BPRISE DSP Platform

Almost 50% of small businesses are already using pay-per-click (PPC) advertising. Unfortunately, not many companies realize there’s an easy way to automate their purchasing. By simplifying a piece of your PPC puzzle, you can spend more time on what matters most: your business.

That’s where a DSP can step in. What is a DSP exactly, and how can it help with your digital advertising?

You’ll have to read on to find out! In this guide, we’ll reveal everything you need to know about DSP advertising and how it can benefit your business. Read on to learn more.

What is Programmatic Ad Buying?

Before we dive into the question, “what is a DSP?” let’s discuss programmatic advertising.

Programmatic advertising is a broader term. It’s used to describe technologies that automate the digital ad buying process.

In some cases, that can mean automating campaign set up based on previous settings. You can also use programmatic advertising for rate negotiation, optimizations, and actualizations. By using programmatic advertising, you can streamline your processes, saving you time and money.

One way to launch programmatic ads is by using a DSP.

What is a DSP?

Now for the big question: what is a DSP?

DSP stands for Demand Side Platform. It’s an automated buying platform that allows users to purchase digital ad inventory. These users often include full agencies or companies that want to advertise their own brands.

The digital ad inventory available can include banner ad space on websites, in-stream videos, or mobile ads that display on phone apps.

There’s a chance you’ve heard of SSP, or Supply-Side Platforms. Also known as Sell-Side Platforms, SSPs are very similar to DSPs. They allow publishers to sell their inventory through an ad exchange.

SSPs require minimum bid requirements. This allows the publisher to maximize how much they’ll make from their ad space.

That begs the question, “what’s the difference between a DSP and SSP?”

DSPs are for marketers. SSPs, on the other hand, are designed for publishers. Both are involved in multiple ad exchanges.

The Ad Exchange

The ad exchange is a digital marketplace. There, advertisers and publishers can use real-time bidding to buy and sell ad space. The ad exchange announces each available impression in real-time.

Then, buyers can determine if they’re interested in that space before they make their bids.

How Does It Work?

Now that you have a broad concept of DSP advertising, let’s talk about the process.

With a DSP, advertisers and agencies can purchase ad inventory from publishers through:

  • Ad networks
  • Ad exchanges
  • Supply-side platforms

Usually, advertisers would buy ad inventory through independent networks. These can include Google, Facebook, other search engines, and other social media platforms. With a DSP, however, advertisers aren’t limited to a set platform.

Instead, advertisers can buy multiple ad formats (like video, mobile, search, display, and native ads) from multiple sources. Meanwhile, the user never has to leave the interface.

Here’s how it works:

  • The user visits a website online
  • That website sends the user’s information to the ad exchange
  • An SSP offers that user information to DSPs
  • Advertisers can bid for ad placement through the DSP
  • The highest bidder wins the ad

With a DSP, users can buy impressions across multiple publisher sites. The advertiser can then target their audience based on location, browser history, or other factors.

The impression price is based on a real-time auction through real-time bidding. Since it’s automatic, you don’t need to waste time bidding on prices. Instead, the impressions are auctioned off to the highest bidder.

The entire process takes seconds, allowing you to save valuable time.

The Benefits

If you’re on the fence about DSP advertising, there are a few benefits you should remain aware of.

First, a DSP offers transparency you can’t find in most forms of advertising. You’ll have a suite of reporting tools available, allowing you to review every detail. Then, you can optimize your campaigns and improve your ad efficiency.

In fact, your analytics will update in real-time. That means you don’t have to waste time and money making uninformed decisions. Instead, you can make decisions about the DSPs you’re using.

With DSP advertising, there’s also a wide range of ad formats available. Sticking to one format can bore your target audience. Instead, you can run an omnichannel advertising campaign to cover new formats.

Over 85% of consumers use the internet to search for local businesses. By using a DSP, you can reach those customers and reel them in!

Other benefits include audience targeting abilities and flexible budget shifting. The traditional ad buying process can leave you in the dark. In other words, you won’t recognize targeting or spending mistakes until you’ve already made them.

Why Use a DSP?

When advertising, you would usually complete a time-consuming process that can involve:

  • Advertisers (you)
  • Publishers (where the ad will appear)
  • The target audience

Then, you’ll waste valuable time sending emails back and forth to negotiate prices. In addition to wasting time, there’s also a chance someone will make an error along the way.

The marketing DSP process allows advertising and agencies to buy ads in seconds. Since the process is done so quickly, you can improve your efficiency and focus on bigger matters.

Choosing the Right DSP

When choosing the right DSP for your advertising needs, try to consider:

  • The data you want (first- versus third-party)
  • How many ad exchanges the DSP will access
  • Your budget
  • Your desired reach

You’ll also want to consider the DSP’s ease of use. If you’re unfamiliar with the interface, you might end up doing more harm than good.

With that in mind, it’s important to choose the right company to work with. Before you start using programmatic advertising, make sure to find the right DSP. They can walk you through training and help you maximize your advertising spending.

Instead of wasting money, you can use your DSP to reach more prospects than ever before!

What Is a DSP?: Your Guide to Smarter Advertising

To recap, what is a DSP? It’s your smarter, faster, easier method to great advertising. With a DSP, you can reach your customers without wasting your advertising budget away!

Eager to get started? Request a free trial from our team today.