Demand-side platform

A demand-side platform (DSP) is a concept that combines various software for advertisers (or advertising agencies) to automate the process of buying and selling ad impressions in real time.

A DSP surfaces digital advertising inventory from multiple sources, where an advertiser or agency can manage marketing campaigns by defining the target audience, bid amount, overall budgets, ad format, and other parameters, while getting feedback about ad impressions and audience behavior in the form of campaign reporting.

DSPs are designed to receive signals from, and interact with, supply-side platforms (SSPs), which aggregate inventory, in order to allow advertisers the opportunity to place their ads in the most optimal inventory locations.

Much like paid search, using DSPs allows users to optimize based on set key performance indicators such as effective cost per click (eCPC) and effective cost per action (eCPA).

There are two types of DSPs:

  • Full-service is a hands-off management model from the agency-side, in which the planning, launch and optimization of an advertising campaign is carried out by account managers of the DSP platform.
  • Self-service, in contrast, is similar to full-service, but management is carried out by the agency or advertiser itself, allowing greater control and autonomy, rather than having account managers of the DSP manage the campaign.
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