What is a Demand Side Platform (DSP), and how does it work?

What is a Demand Side Platform (DSP?)

Demand side platforms are how advertisers and agencies purchase inventory in an automated, efficient, and streamlined manner. The name in English means platform on the side or side of the suit. The medium used by advertising space searchers and advertisers is to find the inventory that interests them the most.

At the same time, there are SSPs or Sell-Side Platforms that represent publishers, that is to say, sellers of advertising space, and supplement the Demand Side Platform (DSPs). It depends on which side of the transaction you are on (buy or sell); you are using one platform or the other.

What Is A  Demand Side Platform (DSP) Uses

In the days leading up to the birth of programmatic advertising, buying and selling of advertising inventory were the same. But then, the whole process was slower and more cumbersome.

As an advertiser, you had to personally contact the publishers, negotiate prices, and track the audience’s reactions, exposing them to the ad. Of course, it was then more difficult to get the amount of data about the public interacting with the ad that can now access.

DSPs streamlined and automated the entire buying and selling process and helped optimize results. On these platforms, you can use segmentation to reach the right audience who are most likely interested in your product or service and want to buy.

Plus, you’ll get real-time results, so you can tailor your campaigns accordingly: by stopping or investing less in channels that deliver fewer results and using those that perform better. It gives you instant feedback that you can use to correct your trajectory and thus maximize the return on your investment.

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How Does A Demand Side Platform (DSP) Work?

The demand-side platforms connect various advertising exchanges. These are the online marketplaces where advertising inventory transactions take place. With a DSP, you can buy space for advertising campaigns virtually anywhere. It is how it connects advertisers and publishers.

A DSP’s intelligent algorithm searches a virtually endless list to find and bid on the cheapest inventory in advertisers’ best conversational media and areas. And all in milliseconds.

In addition, the algorithm does not sit idle between campaign and campaign but learns with every interaction and constantly gets information about the public’s reactions, whereby valuable data to collect to be more precise in each campaign.

All configurations of the advertising campaigns are made in the DSPs. As they combine all the technology of programmatic shopping to enable efficient use. When buying via RTB, you can configure how much money we want to invest, where we want to offer and when via a demand-side platform.

Controlling a Demand Side Platform (DSP) is not an easy task. Many factors play a role in a complex system that receives information from many sources. Typically, trading desks are the specialists who manage DSPs. Often hired by advertising agencies or at companies that specialize in programmatic advertising. Therefore, working with these platforms requires experience and good training.

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