If you’re an advertiser searching for the best way to get ads to the right target audience, you’ve likely seen the term DSP Advertising pop up. Many people on the brand side are not familiar with the term, but they should be– DSP Advertising is the next big thing in digital marketing.
Also commonly known as “Programmatic Advertising,” this method of digital marketing is becoming increasingly popular among advertisers for its effectiveness. But what exactly is DSP Advertising and how can advertisers use it to their advantage?
What is DSP Advertising?
A DSP or “Demand Side Platform” is an advertising management system that allows ad inventory buyers to use just one interface for different ad and data exchange accounts. These accounts can include display, video, search, native and mobile advertisements– all of which are excellent ad types to use for a well-rounded marketing campaign.
DSP Advertising covers everything from automatically buying ad inventory to managing it and tracking results. This reduces the margin for human error or expenses created by manually buying and tracking ads online.
DSP Advertising helps ad inventory buyers buy impressions from different publishers. They’re targeted to users based on information like location, demographics, and purchase behavior. Publishers offer their inventory through ad exchanges, and demand-side platforms will automatically decide which inventory is best and bid for it, which is usually done through real-time bids or “RTBs.”
How Advertisers Can Use DSP Advertising
DSPs are very helpful to advertisers because they streamline the entire purchasing and selling process. The internet is extremely fast, which makes it virtually impossible for marketing teams and advertisers to negotiate prices. Impressions are constantly opening and closing.
There are a number of things advertisers should do to in order to get the most out of DSP advertising:
Understand your budget as a key factor in getting the most out of a DSP. Too small of a budget can lead to constant outbidding for ad space. Startups or very small businesses that don’t have the necessary funds to really be competitive in real-time bidding should consider alternative advertising forms, such as direct sales model advertising.
Make sure you understand your audience. In order for DSP advertising to be successful for your brand, it is crucial to feed information into that DSP about the kind of ad spaces you need your ads to be. The more information and instructions you can give about your target audience, the easier it is for your DSP to negotiate for the most lucrative ad space to reach your very specific demographic.
Think about ad formats. If you are only interested in using native ads, you’ll need to look for a platform that specializes in native ads. If you’re interested in other types of ads or a more varied approach to advertising, work with a broader DSP that will look into more options for you.
Establish goals. Having a strategy and well-thought-out goals are the best approaches to using the DSP system. When you know what you’re looking for when it comes to click-through rates, cost per click (CPC), and view counts, you can absolutely use DSP analytics and third-party platforms with way more efficiency. Do your research and make a plan ahead of time.