what does dsp stand for in advertising

What does dsp stand for in advertising

The world of online advertising is rapidly changing and growing. New notions and entities appear, old ones vanish or evaluate under a pressure of newcomers. One curious thing we are going to talk about is dsp platform.

What is it about?

To explain the matter we should remember old times when the ads were bought and sold by advertising platforms. The process was almost manual, thus, not so much transparent and clear, that lead to various inaccuracies and also high costs.

Demand-side platform, as it was explained by many skilled marketers, removed a part of human interaction. All the processes are performed automatically. As a result, we have cheaper prices, quicker and easier processes.

How does dsp work?

To be honest, the whole process is quite complicated. Publishers use ad exchanges to tender their ad impressions and at this moment it is up to DSP to decide which impressions to show to which Advertisers. The logic of choice is quite interesting: Advertisers state beforehand in what types of users they are interested, the list includes gender, location, age, interest and some other points.

Buy-sell procedure happens in real-time mode, thus, the price is determined online on the go. The Advertisers set the highest rate they are ready to accept. When the cost is higher than expected, such participant drops out for next session of bidding.

What is a meaning for DSP in advertising?

To cut a long story short – to make everything neat and cheap.

Publishers win that they can earn more for their impressions, as traditional networks generally offer stable prices only. It is also important that websites with low traffic can get their piece of pie as the point of interest here is a user.

Advertisers, in their turn, can select more relevant impressions and even low-cost budget companies can easily participate.

Will DSP network replace a traditional one?

Hard to say, as there are followers of each approach. And both participants try to adopt something from each other. What is more possible, that we will see a soon amalgamation of them and, after some time they are very likely to turn into something different again.

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