DSP - WHAT IS IT?

DSP - WHAT IS IT?

Discussion in 'Ad Networks (CPM/CPL, Display, SEM)' started by DorisRon, Oct 12, 2016.

  1. DorisRon

    DorisRon Member

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    The revolution of Internet advertising is in full swing, and DSP is an incredibly important part of this radical and qualitative leap. Here we will tell you about DSP in accessible language, how to treat it and what those "tasty" platform features are.

    ALL PEOPLE AROUND TALK ABOUT DEMAND-SIDE PLATFORMS. WHAT ARE THEY?
    DSP* is part of the software used for automatic advertising buying. Most often, these platforms are used by advertisers and media agencies to buy banner, video, mobile and search advertising.

    * DSP is an automated technological system that interacts with SSP (Supply Side Platform), Ad Network, Ad Exchange, and directly with publishers. The main objective of DSP is to buy impressions to users who best fit the needs of advertisers, at a minimum price.

    WHY ARE THESE PLATFORMS SO IMPORTANT?
    Historically, the buying / selling process of digital advertising was expensive and very unreliable. Modern DSP helps to make the process not so expensive and as effective as possible by removing the factor of human intervention at certain stages and the need for direct negotiation of prices and related "manual" operations.

    UNDERSTANDABLY. BUT WHAT IS OPERATING PRINCIPLE OF DSP?
    It is quite difficult. In short, DSP allows advertisers to buy advertising impressions on different sites, but at the same time to "aim" to specific users basing on the data, such as their location and history of behavior on the site. Publishers make impressions available through ad exchanges* and DSP is free to decide which of these impressions makes sense to buy. Often the price of impressions is determined in the auction in real time, known as RTB. This means that there is no need for sellers to negotiate prices directly with buyers, because advertising impressions automatically go under the hammer at auction. This process takes milliseconds, while the user's computer loads a web page.

    *Ad Exchange is an advertising market, the mediator in the process of digital trade of media advertising, which brings together sellers and buyers of ad inventory; a technological platform for the purchase / sale of advertising inventory, which operates in real time and interacts with context-media network.

    WAIT, DID NOT AD NETWORKS DO IT?
    Yes, to a certain extent. DSP makes much of the fact that earlier was offered by ad networks*, including access to a wide range of inventory and targeting. But its advantage, as opposed to ad networks, is the ability to buy, show and track the ads, using a single tool. As a result, this makes it quite easy to optimize the promotional campaign. Here, everything revolves around the data. Typically, ad networks put the margin on media advertising, which they sell. DSP also charges a small fee for a significant simplification of the transaction.

    * Ad Network is an aggregator of traffic from the owners of sites, which helps them to sell their inventory.

    SO DO DSP REPLACE AD NETWORKS?
    Something like that. The days of the traditional model of advertising networks are numbered, but that does not mean that they will sink into oblivion. In reality, the boundaries between advertising networks and DSP are erased. The popularity of DSP and ad exchanges is growing, that's why ad networks have to get out: today almost all of them offer the possibility of trading in real time, as well as products that are very similar to DSP. Meanwhile, many companies that started out as DSP, began to look more like ad networks, buying inventory, re "packaging" it and reselling it to advertisers at a premium. According to many experts, DSP is the next generation of what we call the ad network.

    If DSP is now engaged in advertising buying, what does this mean for the buyer?
    It only means that humans will be less busy during the advertising purchases. Publishers make more inventory available through ad exchanges, and many advertisers prefer to buy impressions using DSP. And all because it is much more profitable. However, you can not do without human intervention, because you will need to optimize your campaigns and develop promotional strategies. But at the transactional level, human intervention is minimized.

    Does it turn out that DSP replaced agencies?
    Many believe that the way it is. DSP now often work directly with advertiser's clients, effectively replacing the agencies when it comes to the procurement of media advertising. Customers say that they continue to cooperate with agencies to develop strategies or seek advice, but they begin to actively cooperate with third parties, including DSP, which help to buy advertising.

    HOW DOES DSP WORK?
    In fact, DSP is a platform that automates media buying. In the world of digital advertising the term «buying» has been replaced with the word «demand». The downside is "supply", so that publishers and media owners are considered to be at "supply side."

    Supply Side Platform / Sell Side Platform (SSP) is a platform that sells advertising inventory, or advertising positions in internet sites. SSP aggregates the offers of publishers, "collects" residual traffic as well as sets a minimum price for which they are ready to realize their inventory. SSP conducts the auction bargaining with DSP, selling publishers inventory the most profitably.
    DSP do not have own inventory, do not buy and do not sell it, but simply connect publishers with ad exchanges or Supply Side Platforms (SSP), so that they could sell their inventory by themselves. SSP is the same DSP, but in terms of publishers or content sellers. This is a technological platform that automates the sales of impressions for publishers and media owners.
     
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