What is a Demand Side Platform and How is It Used?
Is there any business in the world that does not want to expand its reach or get access to a wider audience? The answer to that question should be undoubtedly, no. Of course, businesses these days want to grow their business and customer base. For that reason, advertising is one of the most important elements. This brings us to the topic of this article, a demand side platform (DSP).
From manual ad orders and in-person meetings for finalizing, to programmatic advertising, online advertising has revolutionized over time and is more powerful today than ever.
As per the emarketer, by 2021, 87.5% of digital advertising will transact programmatically. It is growing in popularity day by day.
The traditional method, where ad buyers used to buy the ad spaces, was way too expensive and unreliable as compared to DSPs that are cheaper and reliable.
Related Article: An All-Encompassing Guide to Programmatic Advertising
Let’s see what exactly DSP means and what it is used for.
Table of contents
What is a Demand Side Platform?
Demand side platform or DSP is an ad-tech software that allows advertisers to run online campaigns by buying and managing ads. It will enable the advertisers the ability to manage the ads on different platforms using a single interface. It helps to buy the impressions from the publishers based on the information and engage in real-time bidding.
Related Article: DSP Targeting Types to Help Re-Engage Potential Customers
A demand side platform is a part of programmatic advertising that refers to buying and selling of digital advertising space automatically. In short, DSP is the building block of programmatic advertising.
DSPs help in automating the ad buying process and make it faster and more reliable. The demand side platform also allows the buyers to participate in the auction and provide tools to optimize and enhance the remarketing of ads. It is used by advertisers, advertising agencies, in-house marketing teams, etc.
Here are a few advantages of utilizing a demand side platform:
- It helps in reaching a wide range of publishers.
- It streamlines and automates the process between the buyer and seller.
- It helps in capturing the user behavior, which in turn improves the remarketing capabilities of an ad.
- It gives proper analytics that helps advertisers optimize the information and provide more relevant information to the audience.
What is a Demand Side Platform Used For?
- It provides global reach and access to premium inventory.
- It makes the process of advertising more effective by targeting properly.
- It allows the advertisers to define the future strategy by giving the analytics and tracking the overall performance.
Leveraging DSP Technology
DSP is the key player in the advertising ecosystem and has streamlined and automated the ad buying process. It has brought transparency to the process and enhanced the ability to reach a wider (but still targeted) audience. A demand side platform would be a fantastic addition to your online advertising toolbox and DSP marketing strategies can help increase your sales.
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