A demand-side platform (DSP) is a concept that combines various software solutions for advertisers (or advertising agencies) to automate the process of buying and selling ad impressions in real time.[1]
It provides digital advertising inventory with the dashboard, where the advertiser can manage their campaign using by defining the target audience, bid amount, overall budgets, ad format, and other parameters, getting feedback about ad impressions and audience behavior.[2]
Full-service is a management model in which the planning, launch and optimization of an advertising campaign is carried out by specialists of the DSP platform.
Self-service is a management model in which the planning, launch and optimization of an advertising campaign is carried out by specialists of the agency/advertiser.
Properties of the DSP
DSP has absorbed the features of the real-time bidding of the previous generation and has brought a lot of new things to the advertising industry:
Extremely high speed of operation — DSP allows agencies and advertisers to make transactions in real time;
Wide audience targeting opportunities: direct (or vertical) targeting — by socio-demographic, geographical, temporal, behavioral characteristics, interests, etc. and lateral targeting, which identifies target groups for a specific task with dynamically changing criteria during an advertising campaign;
Formation of detailed reports on each display, reflecting all the sites involved and the results of their work;
Realtime statistics: the campaign progress report is reflected with a delay of only a few seconds, which allows you to quickly reduce the cost of inefficient traffic sources;
Interaction with dozens of SSPs offering for sale advertising inventory of networks and independent platforms, which means unprecedented media coverage;
The ability to optimize the DSP budget, including automatically. This is especially interesting in the case of buying up "residual traffic".
All these features are collected in a single system, which gives advertisers a unique opportunity to fully control the course of an advertising campaign and maximize its impact on the audience.[3]
The functionality of the DSP often depends on the format of the media. For example, DSPs that advertise online can see how people behave after viewing an ad, whereas this is not possible in outdoor advertising[4] or television and radio, where the advertising constitutes a one-to-many approach.[5]
DSPs incorporate many of the facets previously offered by advertising networks, such as wide access to inventory and vertical and lateral targeting, with the ability to serve ads, real-time bid on ads, track the ads, and optimize. This is all kept within one interface that allows advertisers to control and maximize the impact of their ads. DSPs track frequency information, several forms of rich media ads, and some video metrics.
Many third parties are integrating with DSPs to provide better tracking. In addition, DSPs use advanced price reduction algorithms, commonly known as bid shading, to help advertisers procure ad impressions for a lower CPM in the first-price auction.
DSPs are commonly used for retargeting, as it is able to see a large volume of inventory in order to recognize an ad call with a user that an advertiser is trying to reach.
Types of programmatic buys
Preferred deal: No auction, set CPM, non-guaranteed inventory
Programmatic guaranteed: No auction, set CPM, guaranteed inventory
Private marketplace (PMP): Real time bidding, price floor, select group of advertisers
Open exchange buy: Real time bidding, variable CPM, open to all advertisers
Digital display advertising is online graphic advertising through banners, text, images, video, and audio. The main purpose of digital display advertising is to post company ads on third-party websites. A display ad is usually interactive, which allows brands and advertisers to engage deeper with the users. A display ad can also be a companion ad for a non-clickable video ad.
Google AdSense is a program run by Google through which website publishers in the Google Network of content sites serve text, images, video, or interactive media advertisements that are targeted to the site content and audience. These advertisements are administered, sorted, and maintained by Google. They can generate revenue on either a per-click or per-impression basis. Google beta-tested a cost-per-action service, but discontinued it in October 2008 in favor of a DoubleClick offering. In Q1 2014, Google earned US$3.4 billion, or 22% of total revenue, through Google AdSense. AdSense is a participant in the AdChoices program, so AdSense ads typically include the triangle-shaped AdChoices icon. This program also operates on HTTP cookies. In 2021, over 38.3 million websites use AdSense.
Pay-per-click (PPC) is an internet advertising model used to drive traffic to websites, in which an advertiser pays a publisher when the ad is clicked.
Out-of-home (OOH) advertising, also called outdoor advertising, outdoor media, and out-of-home media, is advertising experienced outside of the home. This includes billboards, wallscapes, and posters seen while "on the go". It also includes place-based media seen in places such as convenience stores, medical centers, salons, and other brick-and-mortar venues. OOH advertising formats fall into four main categories: billboards, street furniture, transit, and alternative.
An online advertising network or ad network is a company that connects advertisers to websites that want to host advertisements. The key function of an ad network is an aggregation of ad supply from publishers and matching it with the advertiser's demand. The phrase "ad network" by itself is media-neutral in the sense that there can be a "Television Ad Network" or a "Print Ad Network", but is increasingly used to mean "online ad network" as the effect of aggregation of publisher ad space and sale to advertisers is most commonly seen in the online space. The fundamental difference between traditional media ad networks and online ad networks is that online ad networks use a central ad server to deliver advertisements to consumers, which enables targeting, tracking and reporting of impressions in ways not possible with analog media alternatives.
Cost per action (CPA), also sometimes misconstrued in marketing environments as cost per acquisition, is an online advertising measurement and pricing model referring to a specified action, for example, a sale, click, or form submit.
Online advertising, also known as online marketing, Internet advertising, digital advertising or web advertising, is a form of marketing and advertising that uses the Internet to promote products and services to audiences and platform users. Online advertising includes email marketing, search engine marketing (SEM), social media marketing, many types of display advertising, and mobile advertising. Advertisements are increasingly being delivered via automated software systems operating across multiple websites, media services and platforms, known as programmatic advertising.
Cost per mille (CPM), also called cost per thousand (CPT), is a commonly-used measurement in advertising. It is the cost an advertiser pays for one thousand views or impressions of an advertisement. Radio, television, newspaper, magazine, out-of-home advertising, and online advertising can be purchased on the basis of exposing the ad to one thousand viewers or listeners. It is used in marketing as a benchmarking metric to calculate the relative cost of an advertising campaign or an ad message in a given medium.
Remainder advertising refers to the advertising space or time slots that a media company has been unable to sell.
In Internet marketing, search advertising is a method of placing online advertisements on web pages that show results from search engine queries. Through the same search-engine advertising services, ads can also be placed on Web pages with other published content.
Xandr, formerly known as AppNexus, is an American multinational technology company operating a cloud-based software platform that enables and optimizes programmatic online advertising. Headquartered in the Flatiron District of New York City, the company has 23 offices in North America, Latin America, Europe, Asia and Australia.
Google Ad Manager is an ad exchange platform introduced by Google on June 27, 2018. It combines the features of two former services from Google's DoubleClick subsidiary, DoubleClick for Publishers and DoubleClick Ad Exchange (AdX). Google Ad Manager initially used a second-price auction format, before announcing that it would be replaced with a first-price auction format in March 2019. Google Ad Manager is the free version of this online ad management software and it is recommended for small businesses. Google Ad Manager 360 is the paid version. Google Ad Manager does not require a minimum amount of impressions on individual active ads, but it does have a limit of 200 million impressions per month. Google Ad Manager manages inventory for advertisers, publishers and ad servers. Advertisers are able to manage their inventory of ad creative, publishers are able to manage their ad space inventory, and ad servers can use the platform to determine which ad to serve and where to serve it. Additionally, Google Ad Manager can use data collected from ad performance and ad space performance to make suggested optimizations to the user. These optimizations suggest what the user could change to better reach the goals they have set for a particular campaign.
A supply-side platform (SSP) or sell-side platform is a technology platform to enable web publishers and digital out-of-home (DOOH) media owners to manage their advertising inventory, fill it with ads, and receive revenue. Many of the larger web publishers of the world use a supply-side platform to automate and optimize the selling of their online media space.
Real-time bidding (RTB) is a means by which advertising inventory is bought and sold on a per-impression basis, via instantaneous programmatic auction, similar to financial markets. With real-time bidding, advertising buyers bid on an impression and, if the bid is won, the buyer's ad is instantly displayed on the publisher's site. Real-time bidding lets advertisers manage and optimize ads from multiple ad-networks, allowing them to create and launch advertising campaigns, prioritize networks, and allocate percentages of unsold inventory, known as backfill.
iSocket is a technology platform aiming to simplify guaranteed media sales. iSocket has two products: iSocket for Publishers (iFP) and iSocket for Advertisers (iFA). iFP is a suite of sales automation and programmatic direct tools that help publisher sales teams streamline the direct sales process. iFA is an automated buying tool that makes it easier for agencies, and brands to buy well-defined, guaranteed inventory directly from publishers in the iSocket catalog. Through automation, iSocket tries to eliminate errors and overhead costs related to the manual media sales process.
Airpush is a private company founded in 2010 that provides bootstrapped mobile advertising platform. It is known as one of the largest mobile ad platforms with over 120,000 live apps utilizing its SDK. Airpush is based in Los Angeles, California with offices in Bangalore, India.
Flurry is an American mobile analytics, monetization, and advertising company founded in 2005. The company develops and markets a platform for analyzing consumer interactions with mobile applications, packages for marketers to advertise in-apps, as well as a service for applying monetization structures to mobile apps. Flurry analyzes 150 billion app sessions per month. The company's analytics platform tracks application sessions in iOS, Android, HTML5, and JavaME platforms. Flurry has raised a total of $65 million in funding since its founding and in March 2014 announced that it would partner with Research Now to create a panel database on mobile users. Flurry was acquired by Yahoo! on July 21, 2014 for somewhere between $200 and $300 million.
TubeMogul is an enterprise software company for brand advertising.
Woobi, formally known as TokenAds, was a digital marketing company based in Tel Aviv, Israel. It provided in-game advertising services for online games, including supply-side platforms and real-time bidding. The company's technology monetized non-paying users through value-exchange advertising, integrated into gameplay.
The Trade Desk, Inc. is an American multinational technology company that specializes in real-time programmatic marketing automation technologies, products, and services, designed to personalize digital content delivery to users.
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