What is Demand Side Platforms in Advertising

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What is Demand Side Platforms in Advertising

Demand side platforms began emerging in 2007 with the emergence of real-time bidding. During this period, advertisers mostly purchased inventory only for web browsers on desktops and laptops. With advancements in technology, this platform now offers more benefits with automated processes. But what is a Demand side platforms, and how does DSP work? Let’s take a further look at it!

What is a Demand-Side Platforms? 

A DSP or Demand Side Platforms is a type of programmatic platform that the advertisers and media ad agencies can use to automatically bid on digital ad inventory. It includes video, display, mobile, and search ad inventory from a wide range of publishers. 

The demand side platforms offers capabilities like real-time bidding which make the decision-making process automated. This automation results in a more efficient, faster, and cheaper ad-buying process. 

How Does Demand Side Platforms (DSP)Work? 

Advertisers use DSP to replace manual ad buying with a more advanced, automated, and real-time bidding platform. The process starts with advertisers uploading the ads they want to publish depending on their target audience. After that, publishers use ad exchange and supply side platforms to make ad inventory available on the DSP. 

These platforms then offer the ad impressions to the DSP, which decides to send a bid to buy the ad impression. It is usually based on how relevant targeting criteria are.

Different advertisers place different bids in real-time. Then, finally, DSP buys the ad impression with the highest bid and displays the same on the publisher’s website. 

This whole process takes only a few milliseconds to complete when a visitor opens a website.

What’s the Difference Between a Demand Side Platforms (DSP) and Re-targeting?

Demand side platforms or DSP is a tool for buying online advertisements through an automated process. It accepts an ad inventory with the highest bid and shows it to the users visiting a website. 

In contrast, retargeting is a cookie-based technology that allows advertisers to anonymously follow their customers all over the internet. It uses JavaScript and hashtag code for the process.

What is the Difference Between a Demand Side Platforms and RTB?

Real-time bidding or RTB is a digital ecosystem consisting of different elements such as Supply Side Platform (SSP), DSP, Ad Exchange, Ad network, and DMP. This platform allows online buying and selling of ad inventory via a real-time auction. 

In contrast, the Demand-side platforms is a part of the RTB ecosystem that serves the buyer side. The advertisers use DSP to get access to multiple inventory sources via RTB.

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