A demand-side platform (DSP) is a system that allows buyers of digital

advertising inventory Advertising inventory or media inventory is the space available in the media, advertising, and marketing industries to advertisers on newspapers, magazines, and digital platforms. History Traditionally advertising inventory was sold during upfront ...

to manage multiple

ad exchange An ad exchange is a technology platform that facilitates the buying and selling of media advertising inventory from multiple ad networks. Prices for the inventory are determined through real-time bidding (RTB). The approach is technology-driven as ...

and

data exchange Data exchange is the process of taking data structured under a ''source'' schema and transforming it into a ''target'' schema, so that the target data is an accurate representation of the source data.A. Doan, A. Halevy, and Z. Ives.Principles of da ...

accounts through one interface.

Real-time bidding 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 a ...

for displaying

online advertising Online advertising, also known as online marketing, Internet advertising, digital advertising or web advertising, is a form of marketing and advertising which uses the Internet to promote products and services to audiences and platform users. ...

takes place within the ad exchanges, and by utilizing a DSP,

marketer Marketing is the process of exploring, creating, and delivering value to meet the needs of a target market in terms of goods and services; potentially including selection of a target audience; selection of certain attributes or themes to emph ...

s can manage their bids for the banners and the pricing for the data that they are layering on to target their audiences. 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 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 (e.g., conta ...

(eCPA).

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 be possible in outdoor advertising or television and radio, where the advertising constitutes a one-to-many approach. DSPs incorporate many of the facets previously offered by

advertising network 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 advertiser's d ...

s, 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 Interactive media normally refers to products and services on digital computer-based systems which respond to the user's actions by presenting content such as text, moving image, animation, video and audio. Since its early conception, various f ...

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 In software engineering, retargeting is an attribute of software development tools that have been specifically designed to generate code for more than one computing platform. Compilers A retargetable compiler is a compiler that has been designed ...

, 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. The percentage of bids that are won over the bids that were submitted zero no marketing and no access given .

Types of programmatic buys

* Preferred deal: No auction, set

CPM CPM may refer to: Advertising *Cost per mille, the advertising cost per thousand views *Cost per impression, Cost per thousand impressions, the online advertising equivalent Management *Certified practising marketer, a qualification for Australi ...

, 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

Examples

Notes

Online advertising Marketing techniques {{advertising-stub

Types of programmatic buys

Examples

See also

Notes