Without DSPs, advertisers wouldn’t be able to buy ads programmatically.Īdditionally, DSPs include most of the planning and management features advertisers rely on to save time and money while reaching their target audiences with their ad campaigns. Many aspects of DSPs make them a critical component to programmatic advertising.ĭSPs serve as a gateway that allows advertisers to connect to the rest of the programmatic ecosystem. Why are DSPs important to programmatic advertising? To learn more about programmatic advertising and its different components, it may be easiest to start with an overview of programmatic advertising’s history to gain a clear understanding of what each piece of ad tech was originally designed to accomplish (there are many overlaps in modern programmatic advertising which often cause confusion). (Learn the difference between ad servers, SSPs, DSPs, and DMPs ).Some of the ad tech components that make up programmatic advertising include: Programmatic advertising also involves a diverse set of ad tech platforms working together – forming an “ecosystem” through which ad impressions (also referred to as “ad inventory”) can be put up for auction, processed, and served to a visitor before a page is done loading.
These different types of deals allow publishers and advertisers to create ad buying arrangements based on budget availability as well as specific ad campaign objectives. Programmatic advertising offers several different types of programmatic deals, many (but not all) of which use a method known as RTB (real-time bidding) to conduct auctions. In modern digital advertising, the majority of ad space is bought and sold programmatically. Programmatic advertising is a term used to describe and categorize methods of buying and selling digital ad space that involve the use of software, automation, and algorithms. While DSPs are powerful ad tech (advertising technology) tools that are used by most advertisers in online advertising, they’re only one component of programmatic advertising.
#Advertising stack software
Benefits and challenges of using DSPs as an advertiserĪ demand-side platform (DSP) is a software system used by advertisers to manage the buying of digital ad space from across multiple ad exchanges through a single interface.ĭSPs are typically offered by companies as SaaS (software as a service) products that advertisers access by paying a subscription fee.Why are DSPs important to programmatic advertising?.This guide covers what a DSP is, how they work, and their importance in online advertising. Parties that operate on the “side” of purchasing ad space (advertisers) are referred to as the “demand-side”, while those who provide ad space (publishers) are on the “supply-side”.Īs one of the most popular tools for managing the purchase of digital advertising, DSPs are forecasted to reach a $30 billion market by 2025 through a 30% annual growth rate. In digital advertising and marketing, DSP stands for “Demand-Side Platform”.Ī party’s interest in advertising their product or service creates the “demand” for ad space.
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