DSP Media Buying: How Does it Differ to Conventional Ad Placement?


As well as there are several ways of advertising online, there are also a plethora of platforms that budding entrepreneurs and advertisers can take advantage of.

To be able to harness the benefits that each platform offers, it’s of the utmost importance that advertisers become familiar with the different approaches available, and ascertain what methods are suited best in relation to a campaign.

Ads on websites are nothing new. In fact, the first ever ad placement took place in the early ’90s, so it should come as no surprise that the services in place are more advanced and allow advertisers graphics.

what is dps and how it works

What Is a DSP?

A demand-side platform allows advertisers to purchase ad space from several suppliers in one sitting.

Rather than having to use a series of platforms to manage the ads, a demand-side platform allows users to keep track of advertisers within one ad network.

As well as being able to cater to desktop users, the advancement of the technology and algorithms means that the there is also plenty of opportunity in relation to using a mobile demand side platform.

The Difference Between a DSP and Ad Network? A Demand Side Platform Explained

Although it’s easy to see why a demand-side platform is often mistaken for an Ad Network, there are some characteristics that separate the two, including the following:

A DSP is a technology that allows advertisers to buy advertising space automatically, whereas an ad network acts as a middleman that connects publishers and advertisers.

Users offer to find that there is more transparency when it comes to media buying with a DSP, as the websites can be chosen. An ad network may not offer this much information so it can be more difficult to decide on the best approach.

How Demand Side Platforms Work

To really understand the benefits that a DSP can offer advertisers, it can be worthwhile getting to know just how ads are presented to online users.

When a user visits a website, the ad will load. Rather than showing a generic ad, the information available will be used to tailor the ad that will be displayed.

What ad is displayed depending on the following factors:

• The type of website being used to view the ad.
• Which advertiser has the maximum bid relevant to the ad placement.

So, if an advertiser has an offer which is relevant to the user, but has been outbid by someone else, then their ad will show instead.
There is also an algorithm in use that can help the network display ads that are relevant to the users on a website.

As such, one person viewing a website may experience different ads to that of someone else.

Demand Side Platform Examples

When looking to get started, advertised will be keen to know what DSP is best for them. This can be completely subjective, so what works for one won’t always work for another.

However, some of the more popular DSPs being used by advertisers are as follows:
• Bucksense
• SiteScout
• MediaMath

Once a platform has been decided on, the advertisers will need to set their CPM and CPA limits so an initial bid can be set up for the campaign.

The information entered will not only help advertisers manage their budget but also ensure that there are more conversions due to the right ads being shown to the right people in most instances.

In some instances, the budget for advertising may need to be reviewed. If you’re in a popular niche, such as the smartphone industry, then you could find that investing a little more in the advertising yields more benefits later.

Slightly more investment could mean larger returns, but it should never be assumed. All kinds of advertising need research and the use of a DSP is no different.

Other Factors to Consider with DSP Media Buying

A DSP is only as good as the information it has access to, and while a good DSP provider can give advertisers a lot of tools when looking for traffic, the advertiser themselves also have a part to play.

Although everyone will have their own approach, there are some of the factors that need to be considered when using a DSP.
• Have a clear understanding of your target audience and goals.
• Ascertain a budget. Some DSPs may require a minimum deposit, whereas others may be more flexible.
• Understand what the DSP can offer. Sometimes a slightly larger investment can mean more premium placements, but research must be carried out.
• Understand the parameters of the DSP. Most will have a series of flexible options, whereas others may not.
• Ensure a DSP offers support. Although many DSPs can be used without issue, it’s worthwhile having that additional peace-of-mind just in case anything should go wrong.

Every advertiser will have a different experience when using DSP media buying but having a clear outlook of the business goals as well as how a DSP works can help a business explore the benefits of a DSP network and expand its reach online easily.

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