A Demand Side Platform, or DSP, is an online advertising platform that makes it easier for an advertiser to buy and sell online display advertising on multiple ad exchanges. Demand side platforms are a more efficient way for advertisers and brands to purchase ads from many different ad exchanges; everything is centralized, including bidding and reporting.
DSPs also allow advertisers and brands to buy audiences rather than specific website ad placements through technology called real-time bidding. The DSPs use behavioral targeting data, collected from cookies and data exchanges, to identify audience segments. The advertiser then uses that targeting data to define what kind of person they want to target with their advertising and how much they are willing to pay per impression. Then the DSP bids on the ad impressions using that advertiser’s criteria and budget, and serves the ads.
Demand side platforms are to display advertising what Google AdWords for paid search advertising on Google. Just like Adwords, advertisers can choose budget by individual impression and by overall budget. Instead of targeting keywords like in AdWords, demand side platforms let you choose audience characteristics. Then, just like AdWords, the DSP serves ads for you wherever your target audience is; you don’t have to worry about picking the right websites because it’s done for you automatically.
Many advertisers believe that demand side platforms provide greater transparency into the advertising process. Advertisers know where their ads have been displayed and what algorithms and data were used to identify the targets. Direct response advertisers can measure conversions as well. However, there is growing frustration that DSPs, and the advertising ecosystem in general, does not have any success metrics beyond clicks and conversions. At Crowd Science, we believe factors like brand awareness and consideration will emerge as key metrics for brands and advertisers as the ad ecosystem evolves.
Hi Alexia,
can you explain me what are the differences between DSP and Ad Exchanges platforms?
Thanks in advance
Andrea
Hi Andra – Sure, I’d be happy to help. On the most simple level, the main difference between DSPs and ad exchanges is whether the platform is created and used by the advertiser or the publisher. DSPs were created by advertisers (usually agencies) to make it easier for them to buy inventory from a range of publishers, ad networks, etc. Ad exchanges are networks that publishers join so they can sell inventory collectively. Check out my blog post What is a Private Exchange or Private Ad Network? for more about ad exchanges.
Hi Alexia,
Can you explain what the difference between a DSP and an ad network are?
Thanks,
Marisa
Hi Marisa – as I mention below, DSPs are systems created by an ad buyer (like an agency) to buy inventory from a variety of platforms. An ad network, on the most simplistic level, is when a group of online publishers get together and combine their ad inventory to provide a large and more appealing audience for advertisers.
Hi,
Thanks for the articles.
Can you please let me know the difference between DSP and RTB.
Thanks,
-Shubh
Great question. Here’s what our industry expert & VP of Business Partnerships Matt Pasternak says about the difference between DSPs and RTBs: Real Time Bidding (RTB) is a buying service across the Ad Exchanges that Demand Side Platforms (DSP) provide their clients. Generally, by contracting with a DSP you get access to RTB via the DSP’s seat on the various Ad Exchanges. It is more effective for a buyer to work with a DSP to get access to ALL of the exchanges instead of making their own deals with each one. DSPs also supplement their Exchange RTB access with inventory management services of all kinds of flavors.
Hi Alexia.
what are the leading DSP service provider ? can you help to list some names?
Tina
Hi Tina – At Crowd Science, we do audience measurement, segmentation and ad targeting. I’m sure a Google search can provide you with a list of DSP providers.
Thanks Alexia, great post! I found it really useful.
Hi Alexia,
Thank you for the article;great explanation and very clearly written!
Can you explain what the difference between an ad network and an ad exchange?
Hi Helena, thanks for the question. Ad exchanges allow advertisers to buy ad space on multiple ad networks. So they’re both about buying ads, but ad exchanges are a level up from ad networks on the buying cycle.
Hi Alexia,
Can a single advertiser buy real-time advertisements directly through a DSP? Or does a single advertiser first have to work with an ad network or trading desk? And the ad network or trading desk will then work with a DSP on behalf of the advertiser or can the advertiser work directly with an demand side platform without an intermediary?
Thanks in advance
Roberto
Hi Roberto – there are several DSPs out on the market today which service different types of clients. It should be possible to work directly with a DSP, however it depends on your budget and the company. Crowd Science is an audience targeting company, so we do not provide DSP services. A Google search should help you find the relevant companies.