Blog Demand-Side Platform as an automatic purchasing tool

Demand-Side Platform as an automatic purchasing tool

There are more and more advertising platforms and it is no longer possible to compare them manually, especially in several parameters at once. DSP simplifies the process of buying and selling advertising inventory on the Internet and allows you to work simultaneously with several advertising networks and formats.

What benefits does DSP have? What is it and how to apply in your strategy? Let’s discuss that in the article.
Demand-Side Platform (DSP) is a tool (software) that enables automatic purchasing of inventory using AI algorithms.

There are two DSP types:

The core DSP functions include:

There several types of budget distribution: 

- standard
- accelerated

There are also several options for setting daily limits:

1. by budget
2. by impressions
3. by clicks
4. by view
5. by custom banner events

Moreover, it is possible to set the limit for the entire period of the campaign.

Let’s look how DSP works:

  1. The customer buys an advertising place in a real-time auction.
  2. While users are loading the pages of the websites they are interested in, the RTB system instantly conducts bidding between auction participants for displaying ads.
  3. The DSP determines the price per  impression and makes a bid. Then, the advertiser who wins the auction acquires the right to display his ad.
  4. DSPs use cookies to analyze user behavior, which allows advertisers to launch accurate targeting.
  5. The client gets the results of the analysis and selects the audience that needs to be attracted, and then decides what price per impression is appropriate and how much they are willing to pay for the impression.

The DSP architecture is unique as it has combined the features of advertising exchanges of the previous generation and brought a lot of new things to the advertising industry:

Summing up, the DSP goal is to buy impressions for relevant users as cheaply as possible.

The DSP platform collects, analyzes and optimizes all the necessary information in real time, shows ads to the relevant audience, provides analytics to advertisers and reduces time costs. As using DSP, there is no necessity to involve a large number of people in the process.

The automated platform guarantees transaction transparency: the client knows under what conditions the ad was displayed, what information DSP used for targeting, and what results the ad brought.

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